HONG KONG -- Hong Kong's stock exchange operator on Wednesday posted a record profit for the third consecutive year, but the announcement was overshadowed by a government plan to increase the tax on stock trades for the first time in 28 years.
With brokers forecasting a drop in trading volumes and up to a 7% erosion in profit for Hong Kong Exchanges & Clearing, shares of the world's most valuable market operator slumped as much as 12.3% Wednesday afternoon, their biggest plunge since October 2008. The stock closed 8.8% lower at HK$509.
