The Liberal Party will support the extension of the special stamp duty and the introduction of a new buyer's stamp duty, or?BSD - two moves aimed at stabilizing the wildly out of control residential property market in Hong Kong, Honorary Chairman James Tien said on Wednesday.

The BSD is an extraordinary measure during an extraordinary time, Tien said, and it should not become a permanent measure.

"We agree that the government should do something to curb property prices, which have been sky rocketing over the past year or two," Tien told a press conference on Wednesday. "But we hope the government to review the BSD scheme a year after its introduction as whether to cancel or lower the duty."

"I have heard discontent toward the BSD from foreign businessmen, investors and foreign consuls based in Hong Kong. They complained to me that as an international financial center, Hong Kong should not pursue protectionism by charging a BSD that targets non-local residents, adding there is no such thing as a BSD in other international financial hubs like London and New York."

He also put forward four proposals aimed at closing the loopholes in regulations on the transfer of shares of Hong Kong companies to foreign or offshore companies.

The measures he proposed are: that the buyer should not be an offshore company registered in a foreign country, all the shareholder(s) and director(s) of the company must be Hong Kong permanent residents, the shareholder(s) and director(s) of the company must issue written declarations to declare they are bona fide officers but not acting on the authorization of non-local people.

"I hope the government will accept our proposals, which are workable as a whole. If the government rejects our proposals, it needs to give good reasons," he said, adding, in the case of rejection, the party will introduce amendments to the relevant bill at the bills committee stage. But if the party's amendments are voted down in the end, he said the Liberal Party would still vote in support of the government bill.

joseph@chinadailyhk.com