{Econbiz News} International banking stocks continued to be under pressure amid the looming threat of a windfall tax, with HSBC (00005) falling 0.7% to HK$148.4, hitting an intraday low of HK$148.2—the lowest since July; Standard Chartered (02888) dropped 1.6% to HK$226.2.
UK Finance Secretary John Healey is set to unveil his first budget on October 28. Market rumors suggest the government is considering imposing a "windfall tax" on banks and oil companies. However, the banking sector has warned that such a move could prompt banks to shift operations overseas, ultimately resulting in a net loss for the government.
According to a report by UK Sky News, the banking industry is preparing to send a letter to Finance Secretary John Healey to protest against the proposed windfall tax. A draft of the letter obtained by the broadcaster reveals that while the industry understands the government's fiscal pressures, UK banks already bear a higher tax burden compared to their international peers. Additional taxation could make it harder for banks to increase domestic investment or force them to move operations abroad, which may not necessarily lead to higher tax revenues.
Currently, the Hang Seng Index stands at 23,933, down 38 points or 0.2%, with turnover on the main board nearing HK$34.4 billion. The Hang Seng China Enterprises Index is at 8,022, down 8 points or 0.1%. The Hang Seng Tech Index is at 4,164, up 6 points or 0.2%. (nw)
UK Finance Secretary John Healey is set to unveil his first budget on October 28. Market rumors suggest the government is considering imposing a "windfall tax" on banks and oil companies. However, the banking sector has warned that such a move could prompt banks to shift operations overseas, ultimately resulting in a net loss for the government.
According to a report by UK Sky News, the banking industry is preparing to send a letter to Finance Secretary John Healey to protest against the proposed windfall tax. A draft of the letter obtained by the broadcaster reveals that while the industry understands the government's fiscal pressures, UK banks already bear a higher tax burden compared to their international peers. Additional taxation could make it harder for banks to increase domestic investment or force them to move operations abroad, which may not necessarily lead to higher tax revenues.
Currently, the Hang Seng Index stands at 23,933, down 38 points or 0.2%, with turnover on the main board nearing HK$34.4 billion. The Hang Seng China Enterprises Index is at 8,022, down 8 points or 0.1%. The Hang Seng Tech Index is at 4,164, up 6 points or 0.2%. (nw)
