The price war among Hong Kong brokers is continuing, even though the abolition of the minimum commission fee has been postponed by a year to next April.
The latest shot was fired by Taiwan-based KGI Asia. Vice-president Lisa Tong Yee-shann yesterday announced a one-month scheme offering special concessions for online trading clients.
Under the scheme, online customers will enjoy a cash rebate of HK$500 on commissions by referring new clients to trade with the firm's Internet trading service. The new clients will receive a HK$200 rebate.
KGI Asia, which charges online clients a commission of 0.15 per cent, was one of the first local brokerages to circumvent Hong Kong Exchanges and Clearing trading rules to charge less than the 0.25 per cent minimum rate.
Firms are able to circumvent the rules by using a non-exchange party as an intermediary, which will cover the commissions a client should have paid.
KGI Asia is not the cheapest broker in Hong Kong.