Task force set up to enhance stock market liquidity
The government on Tuesday announced the establishment of a task force which will come up with recommendations on how to boost stock market liquidity. The group will be led by former Securities and Futures Commission (SFC) chairman Carlson Tong and will meet in the near future to review factors such as the listing regime, market structure and trading mechanism, a statement said. Tong told RTHK that the team will study the adjustment of the stamp duty for local stocks. Economists on Monday said stamp duty on stock transactions should be lowered to strengthen liquidity in the SAR’s market. Tong said: "There have been many controversies recently, and this will be part of the study. So far, no conclusion has been reached, and the group needs to examine relevant data. We will start our work soon.” On Sunday, Chief Executive John Lee revealed that the task force was being set up and said he wanted it to work "very quickly". Tuesday's statement said the group will also work on promoting the city's stock market to issuers and investors. "The task force comprises industry leaders, professionals, representatives from financial regulators and market participants. I look forward to their joint efforts and wise counsel to the HKSAR Government for developing a more vibrant, competitive and dynamic capital market for Hong Kong," said Financial Secretary Paul Chan. The finance chief also said Hong Kong needs to stay close to market changes and needs, given the impact of geopolitics and the external economic environment.  Hong Kong Exchanges and Clearing Limited and the SFC also welcomed the plan. Sally Wong, an unofficial member of the task force, said she hopes to share overseas investors’ views on the Hong Kong market through the team. Wong, the CEO of Hong Kong Investment Funds Association, also said she would like to examine the liquidity and structural improvements of the market from the perspective of medium- to long-term institutional investors. _____________________________
Last updated: 2023-08-29 HKT 20:20 