Hong Kong-Shanghai Stock Market Link May Squeeze Local Brokers
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Hong Kong’s small stock brokerages may shrink as a market access link with Shanghai increases costs and intensifies competition with Chinese firms, according to securities groups.
Fees in Hong Kong may fall to match those charged in China as the market access link enables Chinese clients to buy stocks in the city directly, said Jeffrey Chan, chairman of the Hong Kong Securities Association. Commissions may fall to as low as 0.03 percent, he said.