China’s stock clearing agency said it will halve stock transfer fees from Friday to reduce investors’ trading costs and to reinvigorate markets.
The move is aimed at “promoting stable and healthy operation of the capital market, stimulating market vitality and enhancing support for the real economy,” the China Securities Depository and Clearing Co said in a statement on its website.
Stock transfer fees will be cut to 0.001% of stock trading turnover, it said.
The benchmark Shanghai Composite Index has slumped more than 8% in April, heading for its worst month in six years, as China’s economy suffers from Covid-19 lockdowns in major cities.
On Monday the CSI 300 index, which tracks 300 large-cap and mid-cap stocks traded in Shanghai and Shenzhen, lost 4.9% to end at 3,814.91, its weakest close since April 2020.
Last month, the clearing agency cut or waived some registration and settlement fees to help revive growth in virus-hit areas.
- Reuters, with additional editing by George Russell