Hong Kong stock exchange said on Tuesday it will change its securities transaction fee structure for investors to cut costs and boost sluggish trading amid volatile markets in the Asian financial hub.
The trading tariff of HK$0.5 ($0.064) on each transaction will be removed from Jan 1, Hong Kong Exchanges and Clearing Ltd said, adding ad valorem fee, a tax derived from the value of a transaction, will be hiked from 0.005% to 0.00565%.
Besides simplifying fees and making trade costs more predictable, the decision will lower the trading fee rate from a historical average of about 0.00576% to 0.00565%, the bourse said in a statement.
The move comes as the exchange struggles to revive trading activity on its main markets. Average daily turnover of equity products traded on the bourse dropped 43% in the third quarter of 2022 from a year ago, data from it’s latest earnings show.
The fee change “reflects HKEX’s longstanding ongoing commitment to enhancing the attractiveness and competitiveness of its markets”, Wilfred Yiu, co-chief operating officer and co-head of markets said in the statement.
Reuters