The Hong Kong Government has Gazetted a legislative proposal that will exempt all transfers of shares in exchange traded funds (ETF) from stamp duty. Currently stamp duty applies at a rate of 0.1% paid by both the buyer and seller of shares in ETFs that track indices comprising more than 40% in Hong Kong stocks and have their registers of holders in Hong Kong. The proposed change was announced in February 2014 as part of the current year budget and will be put before the Legislative Council on 17 December 2014. It is expected to pass.