China to cut investor protection fund contributions for brokerages - paper
SHANGHAI Aug 22 (Reuters) - China has reduced mandated contributions by brokerages to an investor protection fund by 30-50 percent, the official China Securities Journal reported on Wednesday, citing brokerage sources.
Chinese brokerages continue to struggle in an environment that has seen major Chinese stock indices give up all of their gains for the year, causing the trading volumes that generate fees for the brokerages to decline.
The original fee was assessed as a percentage of the brokerage's operating revenues, between 0.5 percent and 5 percent depending on the rating of the brokerage.
The larger brokerages could save 30-50 million yuan ($235.99 million) per year on the contribution reduction, the report said.
The move is one in a series of fee reductions intended to boost the performance of Chinese equities markets, which look set to close their third consecutive year in negative territory.
China's securities regulator said in early August it would cut stock and futures trading fees from Sept. 1, which would save investors about 600 million yuan ($94 million) in A-share trading fees by the end of the year.
The investor protection fund was created in 2005 to serve as a pool to refund stock investors in case their brokerage went bankrupt. ($1 = 6.3562 Chinese yuan) (Reporting by Pete Sweeney and Chen Yixin; Editing by Paul Tait)
- U.S.' Kerry expresses regret to India over diplomat case |
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- China confirms near miss with U.S. ship in South China Sea
- Mega Millions winners in Georgia, California to split $648 million |
- Medical bills underlie 60 percent of U.S. bankrupts: study