Hong Kong, for the first time since 1993, increased its stamp-duty for the first time causing the biggest fall in stock trades in above five years.
New measures were announced in the budget by Hong Kong that focused on keeping people afloat during the pandemic and increased expenditure. The government in Hong Kong announced a budget worth $15.5 billion (HK $120 billion). Hang Seng Index, the benchmark of stocks in Hong Kong, sank by 2.9%. The government is also expecting an extra HK$12 billion a year from the trading tax hike to take place in August according to local news media in Hong Kong who named unidentified sources.
Citigroup Inc. analyst have assumed a rise in stamp costs by 6% to 15% because of the increased stamp duties. The talk about putting taxes on financial transactions has resurfaced in the US because of the sudden rise in buying shares of Gamestop in January.
