(Yicai Global) Sept. 15 -- "If the war on trading commsions continues, there will be no way out" was the general consensus reached by participating brokers at the Symposium on Trade Commsions Management by Brokerages, held by the Securities Association of China on Sept. 14, the Securities Times reported.> /n/n/n/n/n
Participants agreed that the China Securities Regulation Committee or the association should take lead in setting up a department to develop corresponding management approaches and set a bottom line for commsion fees.
"There no consensus on what minimum commsion fees should be, that's the problem," an executive attending the meeting said, sighing. Should it be 0.03 percent, 0.025, 0.02 or even 0.015 percent, he asked rhetorically. People are dcussing it, but no decion has been made and the SAC reluctant to lay the bottom line.
However, some executives don't think regulators should interfere too much, unless the commsion rate falls below cost across the industry.
The market has been less active th year the brokerage business generally shrinking, though there still room for commsion cuts. From 0.015 percent to 0.012 percent, commsion fees have fallen closer and closer to cost as competition becomes ever fiercer.
Commsion fees at the 28 A-share lted brokerages mostly fell in the first six months, at an average decline of 5.43 percent. However, on the whole, fee slashing slowed down toward the end of the half, data from the Securities Times showed.
A fall in trading volume and lower commsion fees saw 24 of the 28 brokerages report a drop in business revenue in the first half. Among them, Pacific Securities saw the biggest decline, with revenue from its brokerage falling 58.78 percent to CNY286 million (USD43.67 million).