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Nil levy for stock options and currency futures contracts
All currency futures contracts traded on the Hong Kong Futures Exchange Limited (HKFE) will not be subject to levy starting this Friday.
Meanwhile, the levy holiday for stock options traded on the Stock Exchange of Hong Kong Limited (SEHK) will be extended for another year.
Announcing this today (Wednesday), a Financial Services Branch spokesman said these were part of the Government's initiatives to facilitate market development and to help promote financial services.
An Order which seeks to provide for a nil levy for currency futures contracts traded on HKFE will be published in the Government Gazette this Friday.
Also gazetted will be a Bill which seeks to provide for more flexibility for specifying the rates of levy on transactions of securities and futures contracts traded on the SEHK or the HKFE.
The Bill, namely, the Securities and Futures Commission (Amendment) (No.2) Bill 1996. will be introduced into the Legislative Council on November 6.
The spokesman said: "The Bill seeks to amend Section 52 of the Securities and Futures Commission Ordinance, which may not be sufficiently flexible or conducive to the market development of certain new products, given the proliferation of products in the market.
"For example. there is no provision for a fixed amount to be specified as the levy rate on the sale and purchase of stock options.
"On the other hand, the Order, namely, the Securities and Futures Commission (Levy) (Futures Contracts) (Amendment) Order 1996, seeks to introduce a nil levy for currency futures contracts traded at the HKFE."
In line with a commitment to help market development, the Government has also decided that the levy holiday for stock options will continue for another year.
The spokesman added that the nil levies for both the currency futures contracts and stock options would be subject to a review by the Securities and Futures Commission in conjunction with the two Exchanges in 12 months' time.
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