Update | China’s stock exchanges to cut securities transaction fees after sharp fall in markets

The mainland's two major stock exchanges are to lower securities transaction fees following a recent slump on the markets, Xinhua reported last night.

People's Daily said the transaction fees in Shenzhen and Shanghai would be lowered by 30 per cent - from 0.0696 per 1,000 of the transaction amount to 0.0487 per 1,000 - with effect from August 1.

The announcement comes after Shanghai shares closed down 5.22 per cent yesterday, resuming their downward trajectory a day after recording their biggest gains in more than six years.

After days of heightened volatility and a fortnight of heavy losses, the benchmark Shanghai Composite Index was steady for much of the day, and sometimes in positive territory, but slumped in the last hour of trading.

The Shenzhen Composite Index fell 4.79 per cent.

The Shanghai index swung more than 10 per cent on Tuesday after a weekend interest rate cut failed on Monday to arrest two weeks of plunging prices.