Legislators passed a resolution yesterday calling on the government to halt plans to scrap the minimum brokerage commission for stockbrokers and to adopt a different strategy that would protect jobs.
However, the vote was non-binding and a Hong Kong Exchanges and Clearing spokesman said the minimum commission would be abolished as planned.
Choi Chen Po-sum, chairwoman of the Institute of Securities Dealers, has urged the government to consider a two-tier system that waives the commission rules for large transactions but keeps them for small-sized trades.
However, the government and the HKEx board showed no signs of backing down.
The resolution passed by the financial affairs panel was put forward by broker legislator Henry Wu King-cheong. The HKEx board is scheduled to abolish the 0.25 per cent minimum brokerage commission on April 1.
'The exchange and the government should first seek ways to improve the operating environment for brokers before removing the minimum commission,' Mr Wu said.
'Otherwise, it will force many small brokers to close down.'