The Legislative Council of China's Hong Kong Special Administrative Region (HKSAR) on Wednesday adopted the Stamp Duty (Amendment) (Stock Transfers) Bill 2023 after a third reading.

The stamp duty will be cut from the current 0.13 percent to 0.1 percent of the consideration or value of each transaction payable by buyers and sellers, respectively, as part of efforts to bolster the stock market as announced by Chief Executive of the HKSAR John Lee in the 2023 Policy Address.

A spokesman for the HKSAR government said that the reduction of the rate of the Stamp Duty will lower investors' transaction costs, improve market sentiment, and enhance the competitiveness of Hong Kong's stock market.

The HKSAR government will work with financial regulators and the Hong Kong Exchanges and Clearing Limited to follow up on other measures recommended by the Task Force on Enhancing Stock Market Liquidity to promote the sustainable development of the market, the spokesman said.

Christopher Hui, secretary for financial services and the treasury of the HKSAR government, said the vigorous development of the stock market plays a pivotal role in consolidating Hong Kong's status as an international financial center, maintaining its international competitiveness and promoting the development of the local financial services industry.

The Amendment Ordinance will be published in the Gazette on Thursday and come into operation on Friday, according to a press release of the HKSAR government.

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