20210226 HK exchange

Hong Kong's Hang Seng index has had its best start to a year since 1989, powered by record buying from Chinese investors. (Photo by Dean Napolitano)

Hong Kong tax rise for stock trades overshadows index revamp

Hang Seng will be made more relevant for tech companies

HONG KONG -- Hong Kong's main share index just cannot seem to catch a break.

Just as the stars seemed to be aligning for the worst performing major stock index of 2020, with record inflows of mainland money and an impending shakeup of the Hang Seng Index set to boost the relevance of sought-after new economy stocks, the government shook investor sentiment in recent days with plans to raise the city's trading tax for the first time in 28 years

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