Follow Hong Kong Investment Immigration and Hong Kong Economic news: Although the Hong Kong property market is slowing down, Chan Ka-Keung, Secretary for Financial Services and the Treasury, stated that there are currently no signs of relaxing the property market's "Double Hot Measures" (which impose an additional buyer's stamp duty on non-Hong Kong residents and increase the stamp duty on second homes).
Chan Ka-Keung mentioned during a media tea gathering yesterday (23rd) that the United States has just initiated tapering, and with the continued low-interest environment, there are currently no signs that Hong Kong can relax the Double Hot Measures. He added that it is still too early to assess the impact of tapering on the market, and it is uncertain how quickly the U.S. economy will recover. He believes that the market will remain vigilant regarding U.S. data over the next twelve months.
Regarding the U.S. beginning to reduce its bond-buying scale, Chan Ka-Keung believes that a gradual and slow tapering is a good thing, as the U.S. Federal Reserve does not want to cause market turbulence. He pointed out that if the U.S. does not raise interest rates too quickly, combined with a recovering economy in Mainland China, the flow of funds into Hong Kong should not be significantly affected. Since the first round of quantitative easing measures was introduced by the U.S., $100 billion has flowed into Hong Kong, with moderate inflows over the past year, primarily into the stock market.
No Comment on Relaxing 'Same Share, Same Rights'
The Hong Kong Stock Exchange (388) plans to consult next year on relaxing the 'Same Share, Same Rights' system to "reasonably" welcome the upcoming listing of Alibaba, which is expected to be valued at nearly $100 billion. Chan Ka-Keung stated that he would not comment on individual company issues, emphasizing that whether to relax any system should be determined by market intentions, with the prerequisite being that the rationale is convincing and can gain market acceptance.
Currently, only the United States explicitly allows companies to issue different classes of shares (commonly known as AB shares), while markets like the United Kingdom do not have explicit prohibitions but have not encouraged it. Therefore, Chan Ka-Keung pointed out that allowing companies to issue B shares is not an international trend.
He also stated that Hong Kong cannot blindly replicate the systems of other markets, as different markets have different "ecologies." The U.S. allows companies to issue different classes of shares due to historical factors, and the local context includes class action lawsuits, with listing approval processes differing from those in Hong Kong, making direct comparisons inappropriate.
Chan Ka-Keung noted that the rights of listed companies are primarily composed of three parts: management, major shareholders, and minority shareholders, all of whom enjoy equal benefits, with no one party able to dominate the others. This is the rule of the game in Hong Kong, and all listed companies must comply. If there is a genuine need to change this rule, other measures must be introduced to provide checks and balances.
