China Securities Regulatory Commission, State Development Planning Commission and State Administration of Taxation, Adjusting the Standard of Commission Charges for Securities Trading Circular

Issued: April 4 2002
Effective: May 1 2002

Main contents: Commissions for trades in A shares, B shares and securities investment funds shall be capped at 3 of the transaction value and above the regulatory fee and exchange handling fee (Item One). Commissions for trades in treasury bonds, corporate bonds (including convertible bonds), treasury bond repurchase and new products in the future shall be determined by the exchange (Item Two). If a securities company provides services in addition to regular brokerage services (such as consulting services), its service charge shall be determined between the securities company and its clients on the basis of equality, voluntariness, equitability and good faith (Item Three). Securities companies must not attempt to attract business by offering commission rebates and other inappropriate competition means (Item Five). Change of commission rates must be filed with the local office of the China Securities Regulatory Commission, the local pricing department and the local tax department before it comes into effect (Item Six).
Related legislation: PRC, Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p31 and PRC, Pricing Law, Dec 29 1997, CLP 1998 No.2 p51