The Strategist

Hong Kong announces measures to stimulate stock market

10/26/2023 - 03:22

The government of Hong Kong has launched a set of policies aimed at bolstering the real estate sector and boosting the stock market. According to MarketWatch, these actions should aid Hong Kong in continuing to be a major hub for international finance.

Mstyslav Chernov
Mstyslav Chernov
A decrease in the tax on home purchases is one of the policies that need to assist the government in resolving the issue of a decline in real estate sales. Both Hong Kong residents purchasing more than their first house and non-residents in general will get a tax reduction of 50%, to 7.5%.

Furthermore, homeowners will now be allowed to sell their residences as soon as two years after purchase without having to pay extra tax.

"Over the past year, interest rates have risen sharply, economic growth has slowed and the number of property transactions has fallen," said John Lee, Chief Executive of Hong Kong.

He stated that the reason behind the stimulus measures is that "supply in Hong Kong's property market will grow in the coming years."

"An active stock market is vital to maintaining Hong Kong's status as an international financial centre and preserving our competitiveness," Lee stated.

Hong Kong also plans to encourage the offshore renminbi to be used more frequently.