SFC solicits views on stock exchange list expansion

The Government wants to find out public’s reaction on Government's initiative to offer tax exemptions to offshore funds engaged in futures trading.

This initiative is aimed to reinforce Hong Kong’s status as an international financial centre.

The Securities & Futures Commission Monday began a two-month public consultation on proposals to expand the lists of "specified" local and overseas stock and futures exchanges contained in Schedule 1 to the Securities & Futures Ordinance.

The proposed amendments are in response to the Government’s initiative to offer tax exemptions to offshore funds engaged in futures trading to reinforce Hong Kong’s status as an international financial centre, according to a government report.

Commission Chief Executive Officer Martin Wheatley said: "These are technical amendments to add nine exchanges for the purposes of facilitating the development of Hong Kong as an international financial centre in general, and an asset-management centre in particular, by expanding tax exemptions under the Inland Revenue Ordinance for offshore funds engaged in futures trading. The commission is also taking this opportunity to update the names of several of the exchanges in the lists."

In connection with the Securities & Futures Ordinance and subsidiary legislation made under it, exchanges in one or both lists are given the “specified” status for certain purposes relating to licensing, recognised counterparty status, disclosure of interests and price stabilising.

Written comments should reach the commission by sending an email to specifiedexchangesconsult@sfc.hk by April 21