Regulators Consider Minimum Commission Rates for Brokerages

(Beijing) - Chinese regulators are mulling a new rule on minimum commission levels for securities brokerages in a move to prevent a vicious competition from escalating.

The new rule is likely to be effective by December 1. According to the draft, securities companies will not be allowed to charge commissions lower than their total costs, including securities trading and other costs, according to the China Securities Journal.
After the new rule is adopted, securities firms will be required to report their commissions to related authorities and display charging methods in their branches.