Makes sense...but for 0.03% to

2021-02-24

Makes sense...but for 0.03% to impact market sell-off to such a big degree? I am not getting it....

Hong Kong proposes raising stamp duty on stock trading to 0.13%

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Comments

ChoonYan
2021-02-24
ChoonYan
Technically its an increase of 30% based on Tax which is kind of massive.
- StanG:
  thanks you are right... your comment encouraged me to read up.. turns out stamp duty maybe about 80% of the cost of trading.. in calculating returns, still very small impact though.
andrewtingg
2021-02-24
andrewtingg
Interesting

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I am not getting it....","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":3,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/363507742","repostId":1116673306,"repostType":4,"repost":{"id":"1116673306","pubTimestamp":1614142421,"share":"https://www.laohu8.com/m/news/1116673306?lang=&edition=full","pubTime":"2021-02-24 12:53","market":"hk","language":"en","title":"Hong Kong proposes raising stamp duty on stock trading to 0.13%","url":"https://stock-news.laohu8.com/highlight/detail?id=1116673306","media":"Bloomberg","summary":"Budget outlines spending vouchers, loans for unemployedChan proposes raising stamp duty on stock tra","content":"<ul><li>Budget outlines spending vouchers, loans for unemployed</li><li>Chan proposes raising stamp duty on stock trading to 0.13%</li></ul><p>Hang Seng slumps 3% on report of stamp duty hike,The Hang Seng tech index shed 5%,Shares of Hong Kong Exchanges and Clearing Ltd fell once 12% after the report.</p><p><a href=\"http://laohu8.com/news/1191237890\" target=\"_blank\">How Hong Kong’s Stamp Duty Impacts Trading on HKEX</a></p><p>“The market had been underselling pressure, especially selling of those tech shares, high valuation shares. The news regarding the stamp duty just sped up the selling,” said Steven Leung, executive director and institutional sales at UOB Kay Hian in Hong Kong.</p><p>Hong Kong’s Financial Secretary Paul Chan pledged HK$120 billion ($15.5 billion) of fiscal support targeted at consumers and the unemployed to help boost an economy emerging from two years of recession.</p><p>The counter-cyclical measures include spending vouchers of HK$5,000 for each resident and HK$15 billion of guaranteed loans for those without jobs, Chan said in his budget speech to the Legislative Council on Wednesday. To boost revenue, he proposed raising the stamp duty on stock trading to 0.13% from 0.1%.</p><p>Chan said the focus of the budget is on stabilizing an&nbsp;economy&nbsp;hit by political and social unrest in 2019 and then the coronavirus pandemic last year. After a record contraction of 6.1% last year, the economy will grow in a range of 3.5%-5.5% in 2021, he said.</p><p><img src=\"https://static.tigerbbs.com/3a5e8bc08d06a447973c80d181b6f334\" tg-width=\"930\" tg-height=\"523\" referrerpolicy=\"no-referrer\"></p><p>The consumption vouchers should help stimulate spending, benefiting restaurants, retailers and tourism businesses knocked by virus shutdowns last year. Retail sales in the city have plummeted and unemployment surged to the highest in more than 16 years.</p><p>Other highlights of the budget speech:</p><ul><li>Tax rebates provided with a cap of HK$10,000</li><li>Loan guarantees for unemployed capped at HK$80,000 per person. The government will set aside HK$15 billion for the program; loans will carry 1% interest, with applicants given a moratorium on repayments for first year</li><li>Consumption vouchers to cost about HK$36 billion</li><li>HK$1 billion of subsidies for older buildings</li><li>Headline inflation is forecast at 1.6% in 2021, while underlying inflation is estimated at 1%</li></ul><p>Hong Kong Exchanges &amp; Clearing Ltd. sharesplungedas the city unveiled its first increase to the stamp duty on stock trades since 1993.</p><blockquote>What Bloomberg Economics Says...</blockquote><blockquote>The consumption voucherschemeis “interesting” and equal to 1.4% of 2020 GDP.“On its own, that already exceeds the smaller stimulus packages in 2H 2020. This could give a boost to consumption. It could also help spur the development e-payments in the city, which have lagged those in the mainland.”</blockquote><blockquote>-- Chang Shu, chief Asia economist</blockquote><p>The government announced almost HK$320 billion in virus stimulus last year to support industries and the economy, centered on a HK$10,000 cash handout to residents and a wage subsidy program to stem job losses.</p><p>Chan is seeking to rein in the budget deficit after estimating it would reach a record of about HK$260 billion in the fiscal year ending March 31. The deficit will narrow to HK$101.6 billion in the coming year, or 3.6% of gross domestic product, he said. Fiscal reserves are expected to reach HK$902.7 billion by the end of March, he said.</p><p></p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hong Kong proposes raising stamp duty on stock trading to 0.13%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHong Kong proposes raising stamp duty on stock trading to 0.13%\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-24 12:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=http://bloomberg.com/news/articles/2021-02-24/hong-kong-pledges-hk-120-billion-in-support-as-economy-recovers?srnd=premium-asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Budget outlines spending vouchers, loans for unemployedChan proposes raising stamp duty on stock trading to 0.13%Hang Seng slumps 3% on report of stamp duty hike,The Hang Seng tech index shed 5%,...</p>\n\n<a href=\"http://bloomberg.com/news/articles/2021-02-24/hong-kong-pledges-hk-120-billion-in-support-as-economy-recovers?srnd=premium-asia\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"00388":"香港交易所","03032":"恒生科技ETF","HSCCI":"红筹指数","HSCEI":"国企指数","HSI":"恒生指数"},"source_url":"http://bloomberg.com/news/articles/2021-02-24/hong-kong-pledges-hk-120-billion-in-support-as-economy-recovers?srnd=premium-asia","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1116673306","content_text":"Budget outlines spending vouchers, loans for unemployedChan proposes raising stamp duty on stock trading to 0.13%Hang Seng slumps 3% on report of stamp duty hike,The Hang Seng tech index shed 5%,Shares of Hong Kong Exchanges and Clearing Ltd fell once 12% after the report.How Hong Kong’s Stamp Duty Impacts Trading on HKEX“The market had been underselling pressure, especially selling of those tech shares, high valuation shares. The news regarding the stamp duty just sped up the selling,” said Steven Leung, executive director and institutional sales at UOB Kay Hian in Hong Kong.Hong Kong’s Financial Secretary Paul Chan pledged HK$120 billion ($15.5 billion) of fiscal support targeted at consumers and the unemployed to help boost an economy emerging from two years of recession.The counter-cyclical measures include spending vouchers of HK$5,000 for each resident and HK$15 billion of guaranteed loans for those without jobs, Chan said in his budget speech to the Legislative Council on Wednesday. To boost revenue, he proposed raising the stamp duty on stock trading to 0.13% from 0.1%.Chan said the focus of the budget is on stabilizing an economy hit by political and social unrest in 2019 and then the coronavirus pandemic last year. After a record contraction of 6.1% last year, the economy will grow in a range of 3.5%-5.5% in 2021, he said.The consumption vouchers should help stimulate spending, benefiting restaurants, retailers and tourism businesses knocked by virus shutdowns last year. Retail sales in the city have plummeted and unemployment surged to the highest in more than 16 years.Other highlights of the budget speech:Tax rebates provided with a cap of HK$10,000Loan guarantees for unemployed capped at HK$80,000 per person. The government will set aside HK$15 billion for the program; loans will carry 1% interest, with applicants given a moratorium on repayments for first yearConsumption vouchers to cost about HK$36 billionHK$1 billion of subsidies for older buildingsHeadline inflation is forecast at 1.6% in 2021, while underlying inflation is estimated at 1%Hong Kong Exchanges & Clearing Ltd. sharesplungedas the city unveiled its first increase to the stamp duty on stock trades since 1993.What Bloomberg Economics Says...The consumption voucherschemeis “interesting” and equal to 1.4% of 2020 GDP.“On its own, that already exceeds the smaller stimulus packages in 2H 2020. This could give a boost to consumption. It could also help spur the development e-payments in the city, which have lagged those in the mainland.”-- Chang Shu, chief Asia economistThe government announced almost HK$320 billion in virus stimulus last year to support industries and the economy, centered on a HK$10,000 cash handout to residents and a wage subsidy program to stem job losses.Chan is seeking to rein in the budget deficit after estimating it would reach a record of about HK$260 billion in the fiscal year ending March 31. The deficit will narrow to HK$101.6 billion in the coming year, or 3.6% of gross domestic product, he said. Fiscal reserves are expected to reach HK$902.7 billion by the end of March, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":44,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":82,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":3650003,"gmtCreate":1614162420683,"gmtModify":1680778143074,"authorId":3570687537536373,"author":{"id":3570687537536373,"authorId":3570687537536373,"name":"ChoonYan","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":363507742,"type":1,"supId":0,"prevId":0,"content":"Technically its an increase of 30% based on Tax which is kind of massive.","text":"Technically its an increase of 30% based on Tax which is kind of massive.","html":"Technically its an increase of 30% based on Tax which is kind of massive.","likeSize":0,"commentSize":1,"subComments":[{"id":3650772,"gmtCreate":1614168247697,"gmtModify":1680778144427,"authorId":3574456083153886,"author":{"id":3574456083153886,"authorId":3574456083153886,"name":"StanG","avatar":"https://static.tigerbbs.com/166982bbfdeacb6dfa23a8608425b40f","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":363507742,"type":1,"supId":3650003,"prevId":0,"content":"thanks you are right... your comment encouraged me to read up.. turns out stamp duty maybe about 80% of the cost of trading.. in calculating returns, still very small impact though.","text":"thanks you are right... your comment encouraged me to read up.. turns out stamp duty maybe about 80% of the cost of trading.. in calculating returns, still very small impact though.","html":"thanks you are right... your comment encouraged me to read up.. turns out stamp duty maybe about 80% of the cost of trading.. in calculating returns, still very small impact though."}],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0},{"id":3648855,"gmtCreate":1614152533227,"gmtModify":1680778124026,"authorId":3569548778635529,"author":{"id":3569548778635529,"authorId":3569548778635529,"name":"andrewtingg","avatar":"https://static.tigerbbs.com/7d5e307692b89ed5e1743db3eef62fe5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":363507742,"type":1,"supId":0,"prevId":0,"content":"<u>Interesting</u>","text":"<u>Interesting</u>","html":"<u>Interesting</u>","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/363507742"}