Market: China to reduce transaction fees in the financial market

SHANGHAI (Reuters) – China’s securities regulator announced on Friday that some fees will be reduced or waived in 2023 in a bid to curb trading costs for market participants.

The China Financial Futures Exchange (CFFEX), the operator of China’s derivatives markets, has said it will halve delivery costs for bond and stock index futures by 2023. It will also halve the costs associated with the exercise of index options.

“These provisions will effectively reduce the cost of financial transactions, better meet investors’ risk management needs and strengthen financial support for the real economy,” CFFEX said.

In a separate statement, the Shanghai and Shenzhen stock exchanges announced that they will waive some fees in 2023 also to strengthen the real economy and reduce stakeholder fees.

Listed companies will be temporarily exempted from listing and annual maintenance fees.

China’s State Council had urged various government agencies to lower fees and taxes to support an economy struggling with the consequences of the COVID-19 epidemic.

(Shanghai office, French version Laetitia Volga, editing by Kate Entringer)

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