With the goals of capitalising on the significant growth of the H-REIT market, thereby enhancing stock market liquidity and strengthening Hong Kong’s status in the global REIT market, Hong Kong REITS Association (HKREITA) issued a letter to the Task Force on Enhancing Stock Market Liquidity on 10 October 2023 to propose six key policy recommendations as set out below:
- Stamp duty exemption for the transfer of properties into H-REITs
- Stamp duty exemption for the trading of H-REIT units
- Inclusion of H-REITs into the Stock Connect regime
- Inclusion of REITs into the HKD-RMB Dual Counter Model
- Increase in tax transparency
- Diversification of legal structure of H-REITs
Moreover, HKREITA supports the effort made by the Government and other regulatory bodies in fostering the development of H-REITs. The Association hopes to gauge further support to promote the H-REIT market to a greater prominence in global capital markets.
Document can be viewed here.