LEGCO’S PASSAGE OF 2 BILLS WELCOMED

The Government welcomed the passage of the Stamp Duty (Amendment) Bill 2022 and the Companies (Amendment) Bill 2022 by the Legislative Council today.

The amendment to the Stamp Duty Ordinance gives effect to the proposed exemption of stamp duty payable for certain transactions relating to dual-counter stock made by market makers.

The Government said the amended ordinance is an important step to promote the issuance and trading of renminbi securities as it supports the upcoming launch of the Dual Counter Market Making Programme that promotes the price efficiency and liquidity of RMB counters of Hong Kong stocks.

The work to consolidate the city's status as global offshore RMB hub and assist the internationalisation of RMB will continue, it added.

As for the Companies Ordinance, its amendment provides flexibility for companies to hold general meetings in various manners.

The manner of holding a general meeting is governed by the ordinance, the relevant subsidiary legislation and the company's articles of association. The amended Companies Ordinance expressly caters for the scenario of local companies holding fully virtual or hybrid general meetings without limiting them to physical venues.

The amended Stamp Duty Ordinance will be gazetted on January 27 and come into operation on that date.

The Hong Kong Exchanges & Clearing Ltd plans to launch the Dual Counter Market Making Programme in the first half of 2023 when the implementation details are finalised.  

The amended Companies Ordinance will also be gazetted on January 27 and come into operation on April 28 to give the trade sufficient time to communicate with its members.

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