Hong Kong stocks rebound as investors look past proposed stamp duty hike

** At the close of trade, the benchmark Hang Seng index was up 1.2% at 30,074.17, while the Hang Seng China Enterprises index rose 1.8% to 11,717.41. ** The sub-index of the Hang Seng tracking energy shares rose 2.7%, while the IT sector rose 1.07%, the financial sector ended 1.09% higher and the property sector rose 4.36%.

Hong Kong shares bounced on Thursday, after posting their worst session in over nine months a day earlier, as investors largely looked past Hong Kong's move to raise stamp duty on stock trading. The stamp duty paid on listed stock trades by both buyers and sellers will be increased to 0.13% from 0.1% on Aug. 1.

The hike could create some short-term negative impact on stock trading, Yang Lingxiu, chief strategist at Citic Securities, said. Economic recovery and listings of new-economy companies and some U.S.-listed Chinese firms' secondary listing, however, would continue to attract fund inflows into Hong Kong, he added.  At the close of trade, the benchmark Hang Seng index was up 1.2% at 30,074.17, while the Hang Seng China Enterprises index rose 1.8% to 11,717.41.

 The sub-index of the Hang Seng tracking energy shares rose 2.7%, while the IT sector rose 1.07%, the financial sector ended 1.09% higher and the property sector rose 4.36%. Hong Kong brokerages could have to absorb the government's planned increase in stock trading stamp duty or reduce their already wafer-thin commissions, according to brokers, amid concerns the higher levy will reverse a retail buying craze.

The Hong Kong market also tracked gains on Wall Street overnight, after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low for a long time, calming market fears that higher inflation might prompt the U.S. central bank to tighten monetary policy. Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.71%, while Japan's Nikkei index closed up 1.67%.

 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)