Hong Kong cuts taxes for foreign home buyers and stock traders as it seeks to maintain global status

HONG KONG (AP) — Hong Kong's Chief Executive, John Lee, has unveiled a series of tax cuts, including a halving of extra stamp duties for non-resident homebuyers and current local homeowners seeking additional properties. The move, announced in Lee’s annual policy address Wednesday, is aimed at bolstering the city's financial markets and reinforcing its reputation as a global financial hub, reports say. 

Additionally, stamp duty on stock transactions will be reduced from 0.13% to 0.1%. These measures mark the first easing of property cooling measures in a decade and underscore the importance of a robust stock market in maintaining the city's status as a financial powerhouse, a report of the Associated Press said.

Following the gradual easing of COVID-19 restrictions, Hong Kong's economy has shown signs of recovery, driven by growth in tourism and increased private consumption. The city's economy expanded by 2.2% year-on-year in the first half of 2023, and experts project a full-year growth rate of between 4% and 5%, according to the news agency. Nevertheless, the path to a complete economic recovery remains uncertain, particularly in light of escalating geopolitical tensions and mainland China's struggle to rebound swiftly as Hong Kong's largest trading partner.

In a bid to stimulate economic growth and maintain Hong Kong's position as a global financial center, Chief Executive John Lee announced a series of tax cuts in his annual policy address on Wednesday. The most notable among these measures is the halving of extra stamp duties imposed on non-resident homebuyers and local homeowners looking to purchase additional properties. This significant move represents the first easing of property cooling measures in Hong Kong in the past decade.