Hong Kong Exchanges and Clearing (0388) will scrap the existing settlement fee structure and charge each stock transaction at 0.0042 percent from June, with an aim to balance the cost of fees across all transaction sizes.

The operator of Hong Kong Stock Exchange now charges a minimum of HK$2 and a maximum of HK$100 per stock deal, resulting in a higher fee rate for transactions of lower value.

HKEX expects the new structure could ensure that the overall market expenses do not increase and to balance the cost of fees across all transaction sizes.

In addition, the settlement fee rate for eligible market maker shares for Exchange Traded Products (ETPs) will be adjusted to 0.0020 percent, removing the minimum and maximum fees.