China's securities regulator plans to set rules that brokerage trading commissions should not fall short of business cost, the China Securities Journal reported on Thursday, citing unidentified sources.
The Securities Association of China is now seeking opinions on the draft rules and hope to release the regulation on Dec 1, the report said.
This will help end cut-throat competition in the industry as Chinese brokerages have been cutting commission fees to attract customers in the stock market, the newspaper said.
Currently, brokerage commissions are capped at 0.3 percent of stock trading value, but no floor has been set for the charges, the newspaper said, citing industry insiders. The floor for brokerage trading commissions might be set between 0.05 percent and 0.08 percent in Beijing, according to the draft.
