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PRESS RELEASE

(Source : Information Services Department)

Stamp Duty (Amendment) Ordinance 2015 gazetted today

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     The Stamp Duty (Amendment) Ordinance 2015 was gazetted today (February 13) to implement the stamp duty waiver for the transfer of shares or units of all exchange traded funds (ETFs) as proposed in the 2014-15 Budget.

    "Starting from today, stamp duty is waived for the transfer of shares or units of all ETFs. The stamp duty waiver covers all ETFs regardless of their underlying portfolios, dates of listings or whether stamp duty has been remitted in respect of them," a government spokesman said.

    "The ETF stamp duty waiver will be conducive to fostering Hong Kong's position as an asset management centre and the development of our financial services sector as a whole, offering new business opportunities for market practitioners and a greater range of products for investors."

    The ETF sector is one of the key components of the asset management industry worldwide and has been growing rapidly. Since 2010, the Government has extended the stamp duty remission to ETFs with registers of holders maintained in Hong Kong that track indices comprising not more than 40 per cent of Hong Kong stocks. The number of ETFs listed in Hong Kong increased substantially from 69 at end-2010 to 122 as at end-2014.  The average daily turnover of ETFs also increased from $2.4 billion in 2010 to $4.7 billion in 2014, making Hong Kong one of the major ETF markets in the Asia-Pacific region.       

    The Government proposed in the 2014-15 Budget to waive the stamp duty for the transfer of all ETF shares or units, so that the transaction costs of ETFs with their registers of holders maintained in Hong Kong and with more than 40 per cent of Hong Kong stocks in their portfolios can be reduced as well. The ETF stamp duty waiver seeks to promote the development, management and trading of ETFs in Hong Kong.

Ends/Friday, February 13, 2015
Issued at HKT 11:00

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