SHANGHAI Aug 22 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
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
($1 = 6.3562 Chinese yuan)
(Reporting by Pete Sweeney and Chen Yixin; Editing by Paul