Hong Kong cuts taxes for foreign home buyers, stock traders as it aims to keep status

abcnews.go.com:

Hong Kong’s leader has cut taxes for some homebuyers and stock traders to boost markets as the city seeks to maintain its reputation as a global financial hub

HONG KONG — Hong Kong’s leader on Wednesday cut taxes for some homebuyers and stock traders to boost markets as the city seeks to maintain its reputation as a global financial hub.

Chief Executive John Lee said the extra stamp duties imposed on non-resident buyers and current local homeowners looking to buy additional properties would be halved, making the first easing over the past decade since property cooling measures were introduced.

In his annual policy address, Lee also unveiled plans to reduce the stamp duty on stock transactions to 0.1% from 0.13%, saying a vibrant stock market is vital to upholding the city's status as a financial hub. He set a goal of having the necessary legislative procedures completed by November.

After the easing of COVID-19 restrictions, Hong Kong’s economy has begun to recover, fueled by growth in tourism and private consumption. The city’s economy expanded 2.2% in the first half of 2023 year-on-year and is expected to grow between 4% and 5% for the full year.

However, the path to full recovery remains uneven, particularly with geopolitical tensions rising and Hong Kong's largest trading partner, mainland China, struggling to rebound quickly.

The financial hub also has seen a mass departure of residents in recent years, triggered by a crackdown on pro-democracy activists following Beijing's imposition of a tough national security law, and the now-rescinded strict COVID-19 mandates. This emigration has hurt the economy and property market.

Official data showed a 15% year-on-year drop in home prices last December and a 39% yearly