BB: China to Reduce Stock-Transaction Fees as Market Plunges Again
China’s two stock exchanges will cut transaction costs next month, as the government seeks to encourage equity investment after markets tumbled again on Wednesday.
The Shanghai and Shenzhen bourses will lower transaction fees by 30 percent, according to a statement posted on Shanghai Stock Exchange microblog on Wednesday. China Securities Depository & Clearing Co. will also trim transaction fees, by 33 percent, according to the statement.
The changes, to take effect on Aug. 1, will help “lower investment costs further,” according to the statement.
The Shanghai Composite Index slid 5.2 percent to 4,053.70 at the close on Wednesday. Thirty-day volatility on the measure jumped to the highest level since December 2008. The Shanghai index has been on a roller coaster, taking the new class of stock novices along for the ride. It jumped 5.5 percent Tuesday after earlier falling as much as 5.1 percent in the most volatile trading since 1992 on speculation the government would take steps to stop the rout.
