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Fee cuts to help banks, brokerages better serve real economy

2019-02-25 16:59

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China's banking and securities self-regulatory organizations are preparing fee cut plans to boost members' roles in serving the real economy.

The China Banking Association (CBA) and the Securities Association of China (SAC) have both planned to lower the costs of their member institutions, with the CBA expecting to reduce membership fees by 14.5 million yuan (about 2.1 million U.S. dollars) in 2019.

Pan Guangwei, vice president of CBA, said the organization devised the plan to promote the banks' role in serving the real economy and supporting small- and micro-sized private enterprises.

The SAC, which is soliciting opinions from its members on cutting taxes and fees, said the incentives are meant to stimulate market vitality and guide the securities sector in serving the broader socio-economic development.

Although both plans are designed for the members of the two associations, they have lifted market expectations for industry-wide stimulus in the future.

"It is good news for the operation of securities companies," said Yang Hai, an analyst at Kaiyuan Securities, who linked the SAC plan to a strong rally of brokerage shares on Friday.
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