what is the latest enconomics news in Hong Kong?

Stamp duty cut sets scene for market rallies:

China yesterday cut stamp duty on stock trading to 0.1 percent with immediate effect, in a second step to restore confidence among domestic investors after it limited large share sales in the open market on Sunday.

Analysts say the latest move shows Beijing is worried and determined to regain market stability, and that rallies should follow in both mainland and Hong Kong markets today.

"It definitely is good news that was much anticipated by the market and could send the A-share market back to 3,800 or even 4,000 in a short time," said Andrew Wong Wai-hong, associate director at One China Securities.

However, Wong warned "there are concerns that by cutting the tax back to the same level as May last year, Beijing may be using the tool as a market controlling measure rather than for market regulation."A US investment house analyst said: "It may show China's weakness in market monitoring which might attract speculators once again."The benchmark Shanghai Composite Index yesterday rose 4.75 percent to close at 3,278, after plummeting for two days, ahead of the news of the tax cut.

The Hong Kong market rose for the third straight day yesterday in relatively strong trading, with the Hang Seng Index breaking through the 25,000 level for the first time in nearly three months.

The Ministry of Finance was cited by CCTV as saying the stamp duty will be cut 0.2 percentage points to 0.1 percent, the level it was at before the government moved to cool the market frenzy in May last year.

This year the domestic market has tumbled more than 40 percent, its biggest drop in 15 years, leading to calls for moves by the government to end the slide.