Drop in Hong Kong Prada share volume highlights dangers of transaction taxes
Daily turnover in Prada shares listed on Hong Kong Exchange has dropped by over 30% since introduction of Italian financial transaction tax two months ago
Average daily turnover of Prada shares traded on the Hong Kong Exchange has fallen from around $28 million in February to $18.6 million over March and April after the introduction of the Italian financial transactions tax (IFTT) on March 1.
The extraterritorial reach of the tax, charged at 0.1% per transaction on regulated platforms, is limited to equity instruments issued by firms established in Italy and so in Hong Kong applies only to shares of Italian fashion company Prada.
Mark Austen, Hong
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