Middle Kingdom cuts stock commissions
(China) - China is deregulating stock trading commissions next month, a move that will likely boost turnover on share markets off the back of associated commission fee reductions.
Starting on May 1, brokerages will be allowed to set their own trading commissions capped at 0.3 percent according to the China Securities Regulatory Commission, State Administration of Taxation and State Development Planning Commission.
This ceiling is lower than the present Government pegged broker fee of 0.35 percent for Chinese-only A shares and 0.43 percent for B shares, available to foreign investors.
The Kingdom has about 120 brokerages but most are small players with only 51 having a registered capital of over 500 million yuan and an ability to underwrite share issues.
China also sliced stamp duties on stock trading last November in an attempt to increase trading interest amongst its, mostly retail, 65 million stock trading accounts.
This ceiling is lower than the present Government pegged broker fee of 0.35 percent for Chinese-only A shares and 0.43 percent for B shares, available to foreign investors.
The Kingdom has about 120 brokerages but most are small players with only 51 having a registered capital of over 500 million yuan and an ability to underwrite share issues.
China also sliced stamp duties on stock trading last November in an attempt to increase trading interest amongst its, mostly retail, 65 million stock trading accounts.
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