The Shanghai Stock Exchange (SSE) released a notice to continue the temporary exemption of the initial and annual listing fees of listed companies with the general capital of 400 million shares and below from August 1, 2018 to December 31, 2020 (applicable to preferred stocks), and confirm that the charge on spot bond trading is uniformly at 0.0001% of the trading amount (two-way), with the maximum of RMB100 per transaction.
Standardizing the charges related to enterprises is a key measure of implementing the central authorities’ requirements of reducing burdens and encouraging domestic demand, and it has a direct impact on investors’ rights and interests. The SSE has paid great attention to and earnestly implemented this task. According to the existing charging policy, the SSE temporarily exempts the initial listing fee of listed companies with the general capital of 400 million shares and below from August 1, 2015 to July 31, 2018, and the annual listing fee of listed companies with the general capital of 400 million shares and below from January 1, 2016 to December 31, 2018. Over the past 3 years, the initial listing fee of RMB82.05 million and the annual listing fee of RMB50.875 million have been exempted. As the above policy is to expire in 2018, the SSE has determined to extend it till the end of 2020. It is predicted that the policy will exempt the initial listing fee of about RMB31.35 million and the annual listing fee of about RMB24.64 million in 2018, totaling RMB55.99 million.
With regard to spot bond handling fee, the SSE has capped the handling fee on spot bond trading via the fixed income platform and the block trading platform, with the maximum of RMB100 per transaction. Given the spot bond trading via the bidding-based matching platform is similar to block trading, the SSE has determined to charge the spot bond trading fee uniformly at 0.0001% of the trading amount in a two-way manner, with the maximum of RMB100 per transaction.
While keeping reducing fees and burdens and supporting the development of small and medium-sized enterprises and the real economy, the SSE has adjusted the A-share handling fee and reduced the investors’ trading cost for many times in recent years. The A-share handling fee was reduced from 0.011% of the trading amount to 0.0087% from June 1, 2012 and was further reduced to 0.00696% from September 1, 2012 and then to 0.00487% from August 1, 2015, down by nearly 56% compared with that in 2012. When the replacement of business tax with value added tax was executed from May 1, 2016, to realize the goal of reducing taxes and fees for enterprises, the SSE has separated the price and tax of its previous business fees under the precondition that the total price and tax do not exceed the previous charging standard, thus reducing the handling fee of A-share trading again.