Cheap trading makes Hong Kong attractive

Japanese brokerage Nomura has produced a new guide to help managers to pick the cheapest stocks by transaction cost.

Hong Kong stocks are the cheapest around the region in terms of transaction costs, making them more attractive to fund managers when rebalancing portfolios, according to brokers Nomura.

In a study measuring the market impact of 749 key stocks that account for more than 70% of the market capitalization in eight Asian countries, Nomura finds Hong Kong stocks historically incurred the lowest cost of trading, followed by Taiwan, Singapore, Korea, the Philippines, Malaysia, Thailand and Indonesia, based on last quarter's figures.

Kenneth Chan, a quantitative analyst with Nomura, says the findingsĀ can assist fund managers to account for and improve the transaction costs of their portfolios. They may also help managers decide which...

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