A return to minimum commissions offers shelter from fierce competition unleashed by deregulation of fees
Mainland brokerages have made regional pacts fixing minimum commissions to cushion themselves against a fierce price war triggered by last year's fee deregulation.
Brokerages in the city of Guangzhou and Guangxi province are the latest to form price alliances under the auspices of their regional securities associations - the semi-official industry self-regulation organisations.
Brokers in Shenzhen, among the earliest to sign such pacts, are considering raising their agreed minimum fees after announcing the first overall brokerage loss in seven years.
The trend contradicts recent developments elsewhere, including Hong Kong, to deregulate commissions.
In Shenzhen, preliminary agreement had been reached to raise minimum fees for online trading and telephone transactions from 0.12 per cent to 0.15 per cent of trading turnover, the city's securities association said yesterday.
The 0.2 per cent minimum average commission rate is also likely to be increased.
