China eyes making further trading fees cut
July 22, 2012, 12:02 am TWN
SHANGHAI -- China's securities regulator is planning another transaction fee cut before the start of September, the China Securities Journal reported on Saturday, which would be the third such moved this year aimed at shoring up investor confidence in the bourses.
The China Securities Regulatory Commission is expected to cut trading transaction fees by around 20 percent and is also working with the country's insurance regulator to launch investment guidelines for insurers, the paper said, citing an unidentified CSRC official from a press conference.
On June 1, the Shanghai and Shenzhen stock exchanges lowered the transaction costs of A shares by 25 percent, and cut the transaction commissions of futures products by 30 percent.
Last week, CSRC also halved supervisory fees to stock and futures trading and eliminated fees applied to mutual fund and bond trades.
The fees are collected by both exchanges and the official clearing house. The financial impact is not expected to be significant, but is intended to improve market confidence, analysts said.
Chinese stock markets have slumped in the past year, weighed down by worries over policy tightening and slower growth.
The Shanghai Composite Index fell for the fifth-straight week to close down 0.8 percent to 2,186.6 on Friday after hitting a six-month low on Monday.