Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

HKEx: Stamp Duty Waiver For All ETFs To Take Effect On 13 February 2015

Date 04/02/2015

Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Wednesday) that a stamp duty waiver for all Exchange Traded Funds (ETFs) listed in Hong Kong will take effect on 13 February 2015 following the passage of the Stamp Duty (Amendment) Bill 2014 today in the Legislative Council.

The current stamp duty waiver for ETFs does not apply if the ETF tracks an index comprised of more than 40 per cent Hong Kong-listed stocks.  As a result, 26 of the 124 ETFs listed in Hong Kong are subject to stamp duty now (please see list below for details).  The non-exempt ETFs accounted for nearly a quarter of listed ETF turnover at HKEx last year. 

Since the initial stamp duty waiver was extended in 2010, ETF listings in Hong Kong increased from 69 at the end of 2010 to today's 124.  Average daily ETF turnover also increased substantially, rising from $2.4 billion in 2010 to $4.7 billion last year.  In addition, ETFs’ contribution to HKEx’s securities market turnover nearly doubled from 3.5 per cent in 2010 to 6.9 per cent last year, when Hong Kong was ranked third in ETF turnover in Asia and sixth globally.

"HKEx welcomes this initiative by the Government and believes it will be another very positive development for Hong Kong as well as our financial markets," Chief Executive Charles Li.  "We had record ETF turnover last year and this change will make our ETF business even stronger."

Details of stamp duty on trades in HKEx’s securities market are available on the HKEx website.

ETFs now subject to stamp duty and with a waiver from 13 February 2015 

#

Stock Code 

Name of ETF

1

2800

Tracker Fund of Hong Kong

2

2801

iShares MSCI China Index ETF

3

2817

WISE - CSI HK Listed Mainland Consumption Tracker

4

2824

Lippo Select HK & Mainland Property ETF

5

2825

WISE - CSI HK 100 Tracker

6

2828

Hang Seng H-Share Index ETF

7

2833

Hang Seng Index ETF

8

2838

Hang Seng FTSE China 50 Index ETF

9

2839

WISE - CSI HK Listed Mainland Real Estate Tracker

10

2842

CMS CSI Overseas Mainland Enterprises ETF

11

3004

iShares MSCI Asia APEX Small Cap Index ETF

12

3010

iShares MSCI Asia APEX 50 Index ETF

13

3032

iShares MSCI Asia APEX Mid Cap Index ETF

14

3040

Horizons MSCI China ETF

15

3046

Value China ETF

16

3064

Horizons S&P Asia ex JANZ Financials ETF

17

3070

Ping An of China CSI HK Dividend ETF

18

3072

Ping An of China CSI HK Mid Cap Select ETF

19

3073

SPDR FTSE Greater China ETF

20

3076

Horizons S&P Asia ex JANZ Energy ETF

21

3085

Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF

22

3098

Ping An of China CSI RAFI HK50 ETF

23

3110

Horizons Hang Seng High Dividend Yield ETF

24

3120/83120

E Fund CES China 120 Index ETF

25

3143

BMO Hong Kong Banks ETF

26

3145

BMO Asia High Dividend ETF