Hong Kong And Shanghai Jointly Introduce The Hongkong Commission To Reduce The Bank'S Main RMB Exchange Preferences.

Shanghai and Hong Kong through the opening date has just been settled. Many banks and brokerages in Hongkong have launched a commission war with high profile to fight for individual investors.

In November 10th, the two regulatory authorities announced that Hongkong and Hong Kong announced a number of preferential measures from today to December 31st this year, including the newly opened investment account, which can exempt the brokerage commission of A shares and Hong Kong stocks for the first 3 months, and enjoy the preferential treatment of HK $30 by means of designated channels.

Hang Seng Bank also announced that from November 17th to March 31, 2015 this year, it has launched an unlimited number of brokerage fees to exempt Hong Kong and Shanghai stock exchanges.

Hongkong local brokers Yiu Cai securities have also offered preferential treatment to Shanghai and Hong Kong. They offer the first 6 months' free Commission (first come back) to Hongkong customers who buy and sell A shares through Hong Kong and Shanghai, and the mainland customers who buy and sell Hong Kong shares. After that, the commission rate is 0.01%.

"When Shanghai and Hong Kong have just opened, I believe that many brokerages and banks will attract customers to open accounts through the exemption of commission, and the preferential measures themselves also have publicity effect."

A Hongkong Chinese securities dealer told reporters.

The intense Commission war also worries some people in the industry.

Zhang Huafeng, member of the financial services sector of the Hongkong Legislative Council, also believes that Shanghai and Hong Kong have brought business opportunities to Hongkong's financial industry. However, we hope that the industry will not reduce its commission to an unreasonable level so that small and medium brokerages are under too much pressure.

Since the abolition of the unified collection standard of Trading Commission 0.25% and the minimum limit of HK $100 in Hongkong in 2003, there has been a frequent commissions of war between brokerages and banks during the downturn of market pactions.

At present, the Hongkong stock exchange commissions are usually between 0.1% and 0.25%. The online Commission is lower than the telephone paction. The Commission decreases with the increase of the paction amount. The broker is generally lower than the bank, most of which have the lowest Commission for single paction.

In general, Hong Kong stock pactions are based on the low commission of the securities. The online trading commissions are 0.0668% or 50 Hong Kong dollars for the paction amount, and the two are higher. The higher the paction amount, the lower the Commission, the monthly paction volume exceeds HK $500 million, and the commission rate can be reduced to a minimum of 0.01%.

For Hongkong and Hong Kong Exchanges, local and Chinese brokerages are different in their ability to attract local retail investors in the A share trading free Commission. First, some brokerages add additional shares to the Hong Kong stock exchange, while Chinese brokerages focus on research strength.

The sale of A shares by the mainland customers of Yao Cai securities can enjoy the first three years' free Commission. The first year's zero Commission will be collected in the first two years, and the Hongkong customers will buy and sell Hong Kong stocks for the first 6 months. The commission rate will be 0.01% after the Commission is free.

In addition, the share interest rate of A shares is as low as 3.88 per cent, while the Hong Kong stocks share interest rate is as low as 2.88 per cent.

In order to attract mainland customers, Yao Cai securities also provides HK $10 thousand pportation fee to mainland investors who have opened their accounts in person.

The preferential measures for Yao Cai securities have entered into force since September. Since the launch of the discount, the number of domestic customers has increased by 10 times, believing that the number of new customers in China will continue to soar.

Yao Cai securities chairman Ye Maolin said.

From November 17th to May 30th next year, the rich securities will be temporarily free of 6 months from trading A shares. Customers who make the first paction before December 31st this year can enjoy an additional 6 month free Commission.

In addition, at the same time, the "free Commission" is also launched. Shanghai and Hong Kong can buy A shares under the Hong Kong and Shanghai Stock Exchange, which can be exempted from the Commission for buying Hong Kong stocks, with a limit of 50 pactions per person and a favorable period to January 31st next year.

Huali securities, under the Hong Kong and Shanghai Stock Exchange, will buy or sell A shares or Hong Kong stocks free of charge as at the end of January next year. During the same period, the stock mortgage will be the highest 85%, and there will be a preferential sale of H shares for A shares.

Compared with local brokerages, Chinese brokerages mainly focus on research strength, and their preference for brokerage commission is slightly lower.

Haitong International said that next Monday (November 17th) to February 27th next year, in the face of all new customers and existing customers, there will be no commission on the number of A shares sold or traded in Shanghai and Hong Kong under the cash or exhibition mode. Guotai Junan international currently plans to provide retail investors with no Commission period from next Monday to the end of the year.

Everbright Securities International has yet to offer preferential treatment.

"China's securities companies themselves have large customer groups that can be developed by mainland parent companies, while mainland customers in Hongkong have little resources and need to offer more incentives to attract customers."

A Chinese money merchant said frankly.

Haitong international correspondent said that unlike local brokerages, Haitong international has close ties with mainland parent companies and has the advantage of information sharing.

The analysis is more in-depth.

Since September, Haitong international has started a monthly free investment lecture, which is based on A analysts in the mainland. Retail customers can sign up for participation.

In addition to the free Commission for individual investors, Guotai Junan international customer service department told reporters that the bank also provides free Commission benefits to A clients in Hongkong's small and medium-sized brokerage businesses, and encourages the Hongkong small and medium sized merchants who have not applied for Hong Kong and Hong Kong through the platform to carry out A share trading through the platform.

The Commission war is not limited to Hongkong securities companies. Banks with large retail customers also fight.

However, the Hongkong bank's Securities Trading Commission is generally higher than that of the broker, and each household has different regulations. For example, the rate of commission fee of the Bank of China Hongkong on Internet pactions is the lowest, 0.18%, the highest 0.25%. According to the total turnover of the customers in a certain period of time, the minimum charge for each paction is HK $100. The Trade Commission of Shanghai commercial bank is 0.25% of the paction volume, and the minimum charge is HK $100.

In view of the Shanghai and Hong Kong Exchanges, banks also offer preferential treatment in different ways. The Shanghai commercial bank provides a zero Commission discount to the new securities clients for Hong Kong stocks and A shares, offering a rebate up to HK $3800, and offering a cash prize of HK $100. The existing securities clients buy shares in Shanghai Stock Exchange, and the first paction is free. After that, the paction will receive a 50% commission rebate amounting to HK $3800, with a preferential period from next Monday to March 31st next year.

Hang Seng Bank customers will be exempt from brokerage commission from next Monday to March 31st next year through the stock trading channel of the bank. Daxin bank provides a preferential commission rate of up to 1%.

Compared with securities firms, banks rely on their own advantages and often add RMB exchange and deposit preferences.

BOC Hongkong provides RMB up to 3% interest rate on RMB flexible and high interest rate deposit. It can withdraw money at any time without paying the commission fee. It can be raffled at HK $100 thousand each time, and it will win the Hongkong 9999 gold medal limited edition hardcover one.

Hang Seng Bank's customers, in Shanghai and Hong Kong through the paction commissions during the concession period, through superior or better financial account to buy and sell Shanghai shares through shares, the daily balance of their RMB settlement accounts will be 1% of the savings in November 15th this year.

During the promotion period, all securities customers of Shanghai commercial bank can enjoy RMB 30 points exchange rate and RMB fund subscription fee all 1%.