Media365
Hong Kong is known for its speed. Now it is set to move even faster, with plans to shorten stock settlement times from next year – a shift that could strengthen its standing as an international financial centre.
The city’s stock market has operated on a T+2 settlement cycle for more than three decades, meaning trades are completed two days after they are executed.
That may soon change.
Hong Kong Exchanges and Clearing (HKEX) is consulting the market on a proposal to move to a T+1 cycle, under which trades would be settled the next day. The consultation runs until May 18, with implementation targeted for the fourth quarter of next year.
The proposal forms part of a broader push to modernise Hong Kong’s market structure, alongside listing reforms and changes to board lot sizes, as the city seeks to reinforce its role as a global financial hub.
Here is what the proposed shift could mean for brokers, investors and the wider market.
