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The Financial Services Bureau today (May 17) welcomes a decision passed by the board of the Hong Kong Exchanges and Clearing Limited (HKEx) to remove the minimum brokerage commission rule with effect from April 1, 2002.

"The removal of the minimum commission rule will not only enhance the competitiveness of Hong Kong's securities industry, but also help to strengthen our position as a regional and international financial centre, and bring direct benefit to the investors," a Bureau spokesman said.

"It has been the Government's position to encourage the industry to liberalise the commission structure as soon as possible and to allow free negotiation on commission as in most other major stock markets. We are glad that the HKEx Board has made the decision today and set out a clear timetable for the removal of the minimum commission rule."

On request for further reductions in the stamp duty on stock transactions, the spokesman reiterated the commitment by the Financial Secretary in his Budget speech this year that the Government would more sympathetically look at any subsequent request from the industry after the positive response of the industry to the removal of minimum brokerage commission rule.

End/Wednesday, May 17, 2000

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