SEHK To Introduce A Trading Fee To Replace Its Portion Of Transaction Levy

The Stock Exchange of Hong Kong (SEHK), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, will introduce on 1 September 2001 a Trading Fee of 0.005 per cent per side of the consideration of a transaction. The Securities and Futures Commission (SFC) has approved the fee and the related amendments to the various rules.

Also effective 1 September 2001, SEHK will no longer receive a portion of the Transaction Levy. SEHK's portion of the levy is currently 0.005 per cent per side of the consideration of a transaction.

Effective on the same date, the transaction levy payable to the SFC will increase from 0.005 per cent to 0.007 per cent per side of the consideration of the transaction, payable by each of the buyer and the seller. The income which reflects the increase in the levy will be used to fund a new Investor Compensation Fund.