Hong Kong Exchanges and Clearing (HKEX) will overhaul its settlement fee structure from June, introducing a flat fee of 0.0042% per stock transaction in a bid to balance costs across different trade sizes, the bourse operator said.
Under the current system, HKEX charges a minimum of HK$2 and a maximum of HK$100 per stock trade, a structure that results in higher fee rates for smaller transactions.
The revised model will eliminate these fixed thresholds, aiming to create a more equitable distribution of fees.
The exchange expects the changes to keep overall market expenses stable while addressing the disproportionate cost burden on lower-value trades.
Additionally, for Exchange Traded Products (ETPs), the settlement fee rate for eligible market maker shares will be adjusted to 0.0020%, removing both minimum and maximum fees.
HKEX said the new charging model has received approval from the Securities and Futures Commission (SFC) and will take effect in June.
It added that about 77% of transactions recorded between 2019 and 2024 would have incurred lower fees under the revised framework.
The changes come as Hong Kong’s stock market experiences a surge in daily trading volumes, which have reached up to HK$400 billion in recent weeks, compared to a maximum of HK$205 billion in January.
The increased activity reflects improved investor sentiment, following a prolonged period of weak market performance.
HKEX’s move aligns with broader efforts to enhance market efficiency and competitiveness amid evolving global financial conditions.
The exchange has been exploring various initiatives to attract liquidity and improve market participation, as Hong Kong remains a key financial hub in Asia.
