The Hong Kong Exchanges and Clearing Limited (HKEX) has published a timetable for the forthcoming move to next day settlement for securities transactions.
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The exchange conducted a consultation exercise that showed broad market support for the T+1 transition.
As a result, HKEX is targetting implementation in the second half of 2028, subject to market readiness and regulatory approval.
There will be three layers to implementation - enhancements to HKEX's own infrastructure; development of targeted workflow tools and services; industry-wide coordination on market practices.
“We at HKEX are pleased to be moving ahead with this significant market infrastructure enhancement, with the broad support from participants reflecting a shared recognition of the strategic importance to move Hong Kong’s securities market to T+1," said HKEX chief executive Bonnie Y Chan.
"By reducing settlement risk, improving capital efficiency and strengthening market resilience, T+1 will reinforce the attractiveness and connectivity of Hong Kong’s markets, whilst keeping our infrastructure aligned with the continued evolution of major international markets.”
Hong Kong is following in the footsteps of the US securities markets which has already migrated to T+1 while the EU and UK both have 2027 deadlines for the move to next day settlement.