Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is set to reduce the minimum price fluctuation unit for securities trading, with a maximum reduction of 60%, aimed at enhancing market liquidity and trading efficiency [1][2][3] Summary by Relevant Sections Minimum Price Fluctuation Unit Adjustment - Starting from August 4, the minimum price fluctuation unit for securities will be adjusted in phases. For securities priced between HKD 10 and 20, the minimum fluctuation will decrease from HKD 0.02 to HKD 0.01 (a 50% reduction). For those priced between HKD 20 and 50, it will drop from HKD 0.05 to HKD 0.02 (a 60% reduction) [2][5] - This adjustment applies to stocks, Real Estate Investment Trusts (REITs), and equity warrants [2] Market Liquidity and Trading Efficiency - The HKEX aims to improve market liquidity through this adjustment, making it easier for orders to be executed at expected prices and aligning trading prices closer to the actual value of stocks [1][4] - The average daily trading volume in the Hong Kong stock market reached HKD 240.2 billion in the first half of 2025, reflecting a 118% increase compared to the same period last year [3] Impact on Market Participants - Industry experts believe that the reduction in the minimum price fluctuation unit will lower trading costs and enhance efficiency, potentially attracting more quantitative funds into the market [4] - However, there are concerns that traders relying on small price differences for arbitrage may exit the market due to reduced profit margins, which could negatively impact overall market liquidity [1][7] Future Phases of Adjustment - A second phase of adjustments is planned for securities priced between HKD 0.5 and 10, which will see a 50% reduction in the minimum price fluctuation unit, expected to be implemented next year [2][5]

Core Viewpoint - The chairman of Ninebot Company, Gao Lufeng, expressed surprise at the lack of transparent pricing in the electric bicycle industry, highlighting the company's move towards clear pricing as a significant advancement [2][6]. Group 1: Pricing Transparency - The practice of bargaining in traditional markets leads to inefficiencies in sales processes, as both buyers and sellers engage in negotiations to secure the best deal [2][4]. - The establishment of fixed prices by shop owners in villages helps maintain customer flow and ensures reasonable profits, contrasting with the bargaining culture prevalent among unfamiliar vendors [4][5]. - Ninebot's approach to transparent pricing reduces the negotiation effort required from both parties, streamlining transactions and enhancing market efficiency [6][7]. Group 2: Economic Implications - The shift towards price transparency reflects a deeper evolution in China's economy, as it aims to redefine the fundamental rules of commercial civilization [7]. - The concept of transaction cost theory is validated, indicating that the choice of pricing models is fundamentally about minimizing transaction costs [6][7]. - While price transparency is beneficial, it is not a one-size-fits-all solution, as personalized negotiations remain essential in complex scenarios like bulk commodity trading and construction bidding [6].