Hong Kong announces task force to improve stock market liquidity

HONG Kong’s government said on Tuesday (Aug 29) it had set up a task force to “enhance” stock market liquidity in order to strengthen the city’s competitiveness and the development of its capital market in the short, medium and long term.

The task force will be chaired by Carlson Tong, the former chairman of Hong Kong’s Securities and Futures Commission (SFC) as well as eight other members from the financial services sector, regulators, government officials and representatives from the city’s stock exchange.

The task force will “review internal and external factors affecting market liquidity, including the listing regime, market structure and trading mechanism” and make recommendations to promote Hong Kong’s stock market to issuers and investors, the government said in a statement.

“We need to stay close to market changes and needs, and seek to strengthen Hong Kong’s competitiveness and speed up our development...as well as taking forward measures in the short, medium and long term,” Finance Secretary Paul Chan said in the statement.

Hong Kong’s benchmark stock exchange index is down 6.6 per cent since the start of the year.

China halved the stamp duty on stock trading effective Monday in the latest attempt to boost the struggling market as a recovery sputters in the world’s second-biggest economy.

SEE ALSO

Hong Kong’s Lee plans task force to boost stock market liquidity

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The finance ministry said in a brief statement on Sunday it was reducing the 0.1 per cent duty on stock trades “in order to invigorate the capital market and boost investor confidence”. REUTERS