Photo taken on July 31, 2021 shows the statues on the square of Hong Kong Exchanges and Clearing Limited (HKEX) in south China's Hong Kong. (Xinhua/Wu Xiaochu)

The stamp duty on stock transfer will be cut from the current 0.13 percent to 0.1 percent of the consideration or value of each transaction payable by buyers and sellers, respectively, HKSAR Chief Executive John Lee said in a policy address at the HKSAR Legislative Council (LegCo).

China's Hong Kong Special Administrative Region (HKSAR) will reduce stamp duty on stock transfer as part of efforts to bolster the stock market, HKSAR Chief Executive John Lee said on Wednesday.

The stamp duty will be cut from the current 0.13 percent to 0.1 percent of the consideration or value of each transaction payable by buyers and sellers, respectively, he said in a policy address delivered at the HKSAR Legislative Council (LegCo).

The target is to complete legislative procedures by the end of November, he added.

He also proposed other measures to strengthen the competitiveness of the stock market, including reducing market data fees and exploring cutting trading spreads.

The HKSAR is also planning to reform the growth enterprise market, Lee said, adding that the Hong Kong Exchanges and Clearing Limited (HKEX) has proposed to streamline the transfer mechanism to the main board and add a new listing route for research and development-focused companies.

Lee said the HKSAR will continue to promote stock market development, stressing that he has asked the Securities and Futures Commission to work with the HKEX closely to examine recommendations proposed by a task force on enhancing stock market liquidity, including promoting the listing of overseas issuers, facilitating share repurchase by issuers and maintaining trading under severe weather.

Hong Kong's benchmark Hang Seng Index gained 1.18 percent to close at 17,191.59 points by midday Wednesday.