fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Markets Brokerage

Hong Kong Stocks Dive 13-year Low, Property Tax Cuts and Eased Visa Rules to Attract Talent

Hong Kong Stocks have slumped to the lowest level since May 2009 as the benchmark Hang Seng index dropped by more than 3% following Hong Kong Chief Executive John Lee’s policy address

Jagriti Saha by Jagriti Saha
October 21, 2022
in Brokerage, The Global Economics, Top Stories
Reading Time: 3 mins read
0
Hong Kong Stocks Dive 13-year Low, Property Tax Cuts and Eased Visa Rules to Attract Talent

Hong Kong Stocks Dive 13-year Low, Property Tax Cuts and Eased Visa Rules to Attract Talent

28
SHARES
155
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

The Hang Seng tumbled 1.4% to 16,280.22 at the close of Thursday (20th October) trading. The Hang Seng Tech index was down by 2.08%. Shares in Asia-Pacific traded lower on account of economic turmoil

Hong Kong stocks have slumped to the lowest level since May 2009 as the benchmark Hang Seng index dropped by more than 3% following Hong Kong Chief Executive John Lee’s policy address. The Hang Seng tumbled 1.4% to 16,280.22 at the close of Thursday (20th October) trading. The Hang Seng Tech index was down by 2.08%. Shares in Asia-Pacific traded lower on account of economic turmoil. Hong Kong equities have been underperforming in the USA and UK markets in 2022, with geopolitical tension rising between Washington and Beijing.

The benchmark index has gone down by 5.5% in October 2022- the fourth successive month experiencing a decline. HK$1.2 trillion (US$15.9 billion) has been wiped off the stock market so far this month, and HK$1.6 trillion since January. The offshore Yuan traded at 7.255 per USD, the lowest since August 2010. Investors are perturbed amidst global inflation, central banks around the world raising interest rates to combat price surges, monetary tightening under One Country, Two Systems, trade, and geopolitical conflicts.

John Lee’s maiden policy address on Wednesday was aimed at boosting the city’s competitiveness as an international financial hub along with attracting talents from across the globe. Hong Kong has recently relaxed the covid-19 entry barriers. Lee says Hong Kong has a massive advantage and potential to connect mainland China with the world owing to the 14th Five-year plan, the Greater Bay Area construction, and the Belt and Road Initiative. The address was also focused on fixing certain economic and social issues, mainly housing distress. The city has lost about 140,000 local labor population in a span of two years. The government had proclaimed a series of measures to attract and retain labor forces from abroad. 

Hong Kong is cutting down on property taxes and also mitigating visa rules to revive the city’s financial performance and expand its foreign labor force. The government is to establish the office riveted for attracting Strategic Enterprises from the mainland and overseas by offering a one-stop service portal and a co-investment fund of HK$30 billion pooled out of the Future Fund of the city. The city also brought down its visa parameters, stating they will issue a two-year visa for job seekers who have graduated from premium universities of the world or those having an annual salary of HK$2.5 million (318,504 USD) or above, with no limit on the quota.

Hong Kong Stocks Dive 13-year Low, Property Tax Cuts and Eased Visa Rules to Attract Talent
Hong Kong Stocks Dive 13-year Low, Property Tax Cuts and Eased Visa Rules to Attract Talent 

The property tax cut policy affirms that extra stamp duties that non-permanent resident property buyers have to pay after staying in the city for seven years will be refunded. Upon becoming permanent residents, property buyers are entitled to a refund of two different stamp duties of 15% each. There is, however, another tax capped at 4.25% that all permanent residents still have to pay.

The government plans to aid its strained housing woes by increasing the supply of simple public housing by 30,000 to minimize residents’ waiting period. In his 2025 vision, he has pledged to increase public housing production by 50%. Secondary house prices have gone down by 8% since the beginning of 2022. The easing of stamp duties for non-resident buyers has the potential to attract demand from mainland China. During his address, sub-index property developers were up by 4% as against 2.8% before his speech.

Lee’s address, however, did not embellish the economic goals which have fallen behind rival Asian financial hubs like Singapore. Dickie Wong, the executive director of Kingston Securities, said, “There’s also a sense that tax rebates are not enough to draw foreigners back to Hong Kong.” 

“This is uncertainty. No matter how the economy performed in the third quarter, investors still want a clear picture,” he added. Lee may be ignoring them, but the main policy solution is staring him in the face.

Tags: benchmark indexHang Senghong kongsharesstock
Jagriti Saha

Jagriti Saha

Related Posts

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy
Economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

by Riya Thomas
March 21, 2023
First Republic Shares Plummet Amid Liquidity Fears
Banking

First Republic Shares Plummet Amid Liquidity Fears

by Anuj Singh
March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated
Technology

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

by Rahil Adnan
March 21, 2023
UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services
Exclusive Coverage

UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services

by The Global Economics
March 21, 2023
Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi
Islamic

Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi

by Riya Thomas
March 20, 2023
Previous
Next
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

First Republic Shares Plummet Amid Liquidity Fears

First Republic Shares Plummet Amid Liquidity Fears

March 21, 2023
Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

March 21, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version