Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Wednesday) that a stamp duty waiver for all Exchange Traded Funds (ETFs) listed in Hong Kong will take effect on 13 February 2015 following the passage of the Stamp Duty (Amendment) Bill 2014 today in the Legislative Council.
The current stamp duty waiver for ETFs does not apply if the ETF tracks an index comprised of more than 40 per cent Hong Kong-listed stocks. As a result, 26 of the 124 ETFs listed in Hong Kong are subject to stamp duty now (please see list below for details). The non-exempt ETFs accounted for nearly a quarter of listed ETF turnover at HKEx last year.
Since the initial stamp duty waiver was extended in 2010, ETF listings in Hong Kong increased from 69 at the end of 2010 to today's 124. Average daily ETF turnover also increased substantially, rising from $2.4 billion in 2010 to $4.7 billion last year. In addition, ETFs’ contribution to HKEx’s securities market turnover nearly doubled from 3.5 per cent in 2010 to 6.9 per cent last year, when Hong Kong was ranked third in ETF turnover in Asia and sixth globally.
"HKEx welcomes this initiative by the Government and believes it will be another very positive development for Hong Kong as well as our financial markets," Chief Executive Charles Li. "We had record ETF turnover last year and this change will make our ETF business even stronger."
Details of stamp duty on trades in HKEx’s securities market are available on the HKEx website.
ETFs now subject to stamp duty and with a waiver from 13 February 2015
# |
Stock Code |
Name of ETF |
1 |
2800 |
Tracker Fund of Hong Kong |
2 |
2801 |
iShares MSCI China Index ETF |
3 |
2817 |
WISE - CSI HK Listed Mainland Consumption Tracker |
4 |
2824 |
Lippo Select HK & Mainland Property ETF |
5 |
2825 |
WISE - CSI HK 100 Tracker |
6 |
2828 |
Hang Seng H-Share Index ETF |
7 |
2833 |
Hang Seng Index ETF |
8 |
2838 |
Hang Seng FTSE China 50 Index ETF |
9 |
2839 |
WISE - CSI HK Listed Mainland Real Estate Tracker |
10 |
2842 |
CMS CSI Overseas Mainland Enterprises ETF |
11 |
3004 |
iShares MSCI Asia APEX Small Cap Index ETF |
12 |
3010 |
iShares MSCI Asia APEX 50 Index ETF |
13 |
3032 |
iShares MSCI Asia APEX Mid Cap Index ETF |
14 |
3040 |
Horizons MSCI China ETF |
15 |
3046 |
Value China ETF |
16 |
3064 |
Horizons S&P Asia ex JANZ Financials ETF |
17 |
3070 |
Ping An of China CSI HK Dividend ETF |
18 |
3072 |
Ping An of China CSI HK Mid Cap Select ETF |
19 |
3073 |
SPDR FTSE Greater China ETF |
20 |
3076 |
Horizons S&P Asia ex JANZ Energy ETF |
21 |
3085 |
Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF |
22 |
3098 |
Ping An of China CSI RAFI HK50 ETF |
23 |
3110 |
Horizons Hang Seng High Dividend Yield ETF |
24 |
3120/83120 |
E Fund CES China 120 Index ETF |
25 |
3143 |
BMO Hong Kong Banks ETF |
26 |
3145 |
BMO Asia High Dividend ETF |