14 things you need to know about Hong Kong leader John Lee’s policy address: liquor tax cut to IPOs
New rules to eradicate substandard subdivided flats and measures to attract visitors from Middle East, Asean and mainland among highlights
Over 2½ hours on Wednesday, Lee relaxed mortgage lending restrictions, introduced new rules to eradicate substandard subdivided flats and brought in liquor tax cuts.
Here are the 14 key takeaways from the city’s third policy address.
1. Eased mortgage limits
To inject life into the high-end property market, the ratio of mortgages for all residential properties will be eased to 70 per cent of their value, compared with the previous rule of 50 or 60 per cent.
This removes the previous cap of 60 per cent maximum loans for properties of HK$35 million (US$4.5 million) and higher.
The maximum debt servicing ratio will also be adjusted to 50 per cent from 40 per cent for both residential and non-residential properties.
2. Attract more IPOs
The government will implement new measures to enhance market efficiency and reduce transaction costs to reverse the slowdown in Hong Kong’s initial public offering (IPO) proceeds. The Securities and Futures Commission and the Hong Kong stock exchange will also streamline vetting processes – meaning they could take a shorter time – to encourage more listings.
