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The Securities and Futures Commission (SFC) welcomes the measures proposed by the Financial Secretary Mr Paul Chan in the government’s 2024-2025 budget to further enhance Hong Kong’s status as an international financial centre.
“The proposed initiatives will boost Hong Kong’s competitiveness as a global asset and wealth management hub and fund-raising centre,” said the SFC’s Chairman Mr Tim Lui. “Building on a decade of success for our mutual market access schemes, we will continue to deepen connectivity with Mainland markets, especially the Greater Bay Area, as well as consolidate Hong Kong’s position as a leading offshore renminbi hub and a premier risk management centre.”
“We support the government’s efforts to drive the long-term healthy growth of Hong Kong’s capital markets,” said the SFC’s Chief Executive Officer Ms Julia Leung. “We will work closely with Hong Kong Exchanges and Clearing Limited (HKEX) to improve the market microstructure, reduce transaction costs and enhance market efficiency.”
Among the various market development efforts, the SFC shares the government’s view about the importance of reducing transaction costs, both explicit and implicit, to improve market liquidity. In particular, the SFC will work with HKEX to review the minimum bid-ask spreads in stock trading. The SFC also welcomes other cost-saving measures and incentives, including the extension of the Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts (REITs), as well as the stamp duty waiver for REITs. The SFC will announce more details about the extended grant scheme in due course.
The SFC will also work closely with the government and regulatory counterparts to explore ways of harnessing Hong Kong’s strengths to safeguard financial stability and support both local and national economic developments.
