A growing number of Internet brokers are offering waivers on commissions or price cuts, undermining Hong Kong Exchanges and Clearing's minimum commission rule.
TD Waterhouse, the world's biggest online broker, is offering clients who register with the local trading service before October 21 a waiver of commission for three trades.
'Under the scheme we are going to give away 5,000 free trades,' said Karen Buck, managing director of TD Waterhouse.
'[Considering] each client is eligible for three trades, our target is about 1,600 new accounts as a result of this promotion.'
Boom Securities, Hong Kong's first Internet broker, offered a waiver for 10 trades to clients who registered at a promotional event last weekend.
Both firms circumvent the exchange's rule governing stock brokers which says they should not charge a commission of less than 0.25 per cent of the trade amount.