China securities regulator cuts transaction fees

The China Securities Regulatory Commission (CSRC) said Thursday that it will slash transaction fees for stocks and futures trades for the third time since April, in a move to boost the nation’s languishing equities markets, Reuters reported. The combined savings from the cuts are expected to total US$2.43 billion this year, the CSRC statement said. The commission has also pushed firms to pursue share buy backs if their stock price falls below their net asset value, a measure likely to boost a company’s stock. However, the Shanghai Composite Index, which continued to decline on Thursday, indicated a lackluster response from investors to the news. “I think the market is getting a bit numb to what the CSRC is trying to do,” said Chen Yi, an analyst with Xiangcai Securities. The CSRC is further collaborating with other ministries to potentially reduce stamp duty, state media reported.