Please see Trading Notice Below from the Hong Kong Stock Exchange

Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or [email protected]

Subject: FRC Transaction Levy of .00015% for a new combined rate of .13785%.

General

The following fees apply to each security transaction¹:

Brokerage²

Effective 1 April 2003, the brokerage of security transactions becomes freely negotiable between brokers and their clients.

SFC Transaction Levy

Effective 1 November 2014, a SFC Transaction Levy of 0.0027% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the SFC. There is no SFC Transaction Levy on Securities Market Maker (SMM) transactions.

To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating SFC Transaction Levy if applicable.

Investor Compensation Levy

Effective 19 December 2005, the payment of Investor Compensation Levy (i.e. 0.002% per side of the consideration of a transaction, rounded to the nearest cent) has been suspended by the SFC.

To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating Investor Compensation Levy if applicable.

FRC Transaction Levy

Effective 1 January 2022, a FRC Transaction Levy of 0.00015% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the Financial Reporting Council (FRC). There is no FRC Transaction Levy on Securities Market Maker (SMM) transactions.

To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating FRC Transaction Levy if applicable.

Trading Fee

A Trading Fee of 0.005% per side of the consideration of a transaction (rounded to the nearest cent) is payable to the Exchange. Different rate of exemption of the Trading Fee will apply to the SMM transactions in different categories of Exchange Traded Products.

To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating Trading Fee if applicable.

Trading Tariff

A trading tariff of HK$0.50 is payable to the Exchange on each and every purchase or sale transaction. With effect from 31 May 2021, trading tariff of any Fixed Income or Money Market Exchange Traded Funds transaction is exempted until further notice. The decision on whether or not to pass the trading tariff on to investors is at the discretion of brokers.

Stamp Duty on Stock Transaction

Unless stated otherwise, all securities listed on the Exchange are subject to a stamp duty at a rate of 0.13% (rounded up to the nearest dollar) on the value of the transaction, on both the buyer and the seller. Please click here for a full list showing securities not subject to Hong Kong Stamp Duty. Stamp Duty remissions apply to all Options Market Maker jobbing transactions and SMM transactions.

To facilitate the calculation of stamp duty to be paid through the Exchange for transactions in non-Hong Kong dollar currencies on any trading day, the exchange rates of Hong Kong dollars against renminbi and US dollars will be published on the HKEx website. Please click here to access the exchange rate information.

Transfer Deed Stamp Duty

Independent of the quantity of shares traded, the Government levies a transfer deed stamp duty of HK$5.00, payable by the registered holder of the pertaining share certificate(s), i.e. the seller, on each new transfer deed.

Transfer Fee

Independent of the quantity of shares traded, the registrar of each listed company levies a transfer fee of HK$2.50 per share certificate from the registered holder, i.e. the buyer, for each new certificate issued.

Initial Public Offer Shares

Of the transaction costs discussed above, brokerage, SFC Transaction Levy, FRC Transaction Levy and trading fee are applicable to initial public offer share. For ease of reference, below please find a simple illustration of how some of the above transaction costs are involved and calculated in an application for new shares offered by a new listing issuer. Contents of the below illustration are agreed following consultation among the Exchange, the SFC and the Hong Kong Association of Banks and the demonstration is mainly for the benefit of the public in understanding the method of calculating a correct amount in application for new shares.

Formula for Amount Payable for Initial Public Offer Shares
1.	The amount payable for initial public offer shares (“Amount Payable”) comprises five elements, namely:
	(i) Application Money – the offer price of the number of the shares applied for;
	(ii) Brokerage Fees2 – 1% of the Application Money;
	(iii) SFC Transaction Levy3 – 0.0027% of the Application Money;
	(iv) FRC Transaction Levy4 – 0.00015% of the Application Money; and
	(v) the Exchange Trading Fee5 – 0.005% of the Application Money
2.	Each component in (1) above should be calculated separately to arrive at a sub-total. Where applicable, the relevant sub-total should be rounded to the nearest cent i.e. if the third digit after the decimal point is 0.005 or above, it should be rounded up; otherwise it should be rounded down. The five sub-totals should then be added together to arrive at the Amount Payable.
3.	For example:
	No. of Public Offer Shares Applied	: 2,000 shares
	  Issue Price	: HK$5.23
	  Brokerage	: 1%
	  SFC Transaction Levy	: 0.0027%
	  FRC Transaction Levy	: 0.00015%
	  The Exchange Trading Fee	: 0.005%

https://www.hkex.com.hk/Services/Rules-and-Forms-and-Fees/Fees/Securities-(Hong-Kong)/Trading/Transaction?sc_lang=en