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South China Morning Post
a day ago
- Business
- South China Morning Post
Hong Kong's bull market fills fiscal coffers, plugs hole left by ailing real estate market
Hong Kong's stock market stamp duty income is filling the city's financial coffers at the fastest pace since 2021, amid a bull run on the local bourse that has attracted scores of initial public offerings (IPOs) and fuelled frenzied trading. Advertisement Duties from transactions and transfers rose to HK$29.69 billion (US$3.78 billion) in the first five months of 2025, according to calculations by the Post based on government data. Contributions from the stock market jumped 42.5 per cent to HK$52.17 billion for the financial year that ended in March, accounting for about 90 per cent of total stamp duty revenue and 9.3 per cent of the government's revenue, helping to plug the fiscal hole left by a slumping property market It also vindicated the hard stance taken by Financial Secretary Paul Chan Mo-po, who resisted pressure from local brokers who asserted that the November 2023 cut in transaction costs to 0.1 per cent did not go far enough. At 0.1 per cent, payable by the buyer and seller in a transaction, Hong Kong was among the world's cheapest major markets for trading, surpassed only by the US, mainland China and Japan, which did not charge any transaction fees. 'The lower stamp duty has helped reduce transaction costs, boosting liquidity and trading activity, which is beneficial for the overall market,' said Dickie Wong, director at the Institute of Securities Dealers in Hong Kong. Combined with near-zero margin financing costs, it has encouraged individual investors to subscribe to new IPOs, further supporting market turnover, he said. The ceremonial gong used by the Hong Kong Exchanges and Clearing Limited (HKEX) to mark the commencement of trading of a new stock went on a citywide road show on June 20, 2025, to commemorate the exchange's 25th anniversary. Photo: Edmond So The Hang Seng Index, the city's stock benchmark, has risen 20 per cent in the first six months of this year, outperforming major indexes globally despite the US-China trade war that started this April, roiling the market. Advertisement The stock market's capitalisation has risen 24 per cent to HK$40.9 trillion as at the end of May according to exchange data, as trading activity picked up. Average daily turnover reached HK$210.3 billion in May, a 50 per cent increase from a year ago, while daily turnover for the first five months averaged HK$242.3 billion, more than double the same period last year.
South China Morning Post
11-04-2025
- Business
- South China Morning Post
US plan to delist Chinese stocks may make Hong Kong great again as IPO hub, bankers say
Hong Kong is likely to benefit from the delisting of mainland Chinese firms from American exchanges should the US follow up on its threat to eject them, according to bankers and analysts. Advertisement 'These companies may consider a secondary listing or a dual-primary listing in Hong Kong to raise funds, which will boost the initial public offering (IPO) market,' said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, an industry body for stockbrokers. A total of 286 Chinese companies were listed on the New York Stock Exchange, Nasdaq and NYSE American with a combined market capitalisation of US$1.1 trillion at the end of March, according to data from these exchanges. Since January 2024, 48 mainland firms have listed on the three US bourses, raising a combined US$2.1 billion, including self-driving car firm and Geely's EV unit Zeekr. 02:54 Trump raises China tariffs to 125%, pauses US levies on most other nations for 90 days Trump raises China tariffs to 125%, pauses US levies on most other nations for 90 days Their fate remains uncertain after US Treasury Secretary Scott Bessent declined to rule out the possibility that Washington might delist Chinese stocks from US exchanges.
South China Morning Post
11-04-2025
- Business
- South China Morning Post
Delisting of US-listed Chinese firms to boost Hong Kong's status as fundraising hub
Hong Kong is likely to benefit from the delisting of mainland Chinese firms from American exchanges should the US follow up on its threat to eject them, according to bankers and analysts. Advertisement 'These companies may consider a secondary listing or a dual-primary listing in Hong Kong to raise funds, which will boost the initial public offering (IPO) market,' said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, an industry body for stockbrokers. A total of 286 Chinese companies were listed on the New York Stock Exchange, Nasdaq and NYSE American with a combined market capitalisation of US$1.1 trillion at the end of March, according to data from these exchanges. Since January 2024, 48 mainland firms have listed on the three US bourses, raising a combined US$2.1 billion, including self-driving car firm and Geely's EV unit Zeekr. 02:54 Trump raises China tariffs to 125%, pauses US levies on most other nations for 90 days Trump raises China tariffs to 125%, pauses US levies on most other nations for 90 days Their fate remains uncertain after US Treasury Secretary Scott Bessent declined to rule out the possibility that Washington might delist Chinese stocks from US exchanges.
