Higher share trading tax clouds outlook for Hong Kong stock exchange

The city's budget deficit is expected to hit a record HK$257.6 billion ($33.2 billion) for 2020/21

Hong Kong, reeling under its longest recession on record, will hike a tax on stock trading, dimming the earnings outlook for the city's stock exchange operator and sending its shares lower.
 

As the exchange posted record profits on high trading volumes, Hong Kong Financial Secretary Paul Chan said in his annual budget speech on Wednesday that the stamp duty on stock trading would rise as the government seeks to boost revenues.
 

The announcement sent shares in Hong Kong Exchanges and Clearing (HKEX) down 11%. Its shares closed down 8.8% at HK$509, the biggest daily percentage fall in five-and-a-half years.
 

The