It appears that smaller Hong Kong stock brokers are now complaining that they are not getting the kind of 20 month bonuses they were getting before the abolition of the minimum commissions they were guaranteed under the old commission system. Today fees are as low as 0.15% of the trade and smaller brokers are getting a half month commission at the end of the year. Most big arbitrage deals are being done through larger brokerage houses, so they are getting the bigger year end bonuses.
Of course, a person can buy HSBC shares in the US with a commission of $US20 through ETrade, although there might be other taxes to consider (e.g. the US has a capital gains tax and taxes dividents)
The old commission system in Hong Kong (where small brokers paid out 20 month bonuses at year end) unfairly protected smaller brokers by FORCING the buyers to accept a minimum commission or go overseas to buy shares in foreign countries. Kind of like rice buyers in Korea being forced to buy rice from inefficient Korean farmers.
