Hong Kong Exchanges and Clearing (HKEX) aims to move Hong Kong’s securities market from T+2 to T+1 settlement in the second half of 2028.
The timeline remains subject to market readiness and regulatory approval.
The exchange confirmed the target in consultation conclusions. Its April consultation paper had proposed the fourth quarter of 2027.
The consultation drew 109 non-duplicated responses from brokers, custodians, investment managers and other stakeholders.
According to HKEX, respondents strongly supported the move, citing lower settlement risk, better market and capital efficiency, and Hong Kong’s competitiveness as an international financial centre.
Their feedback identified areas requiring attention, including higher operational demands, timely securities availability, greater automation and industry-wide coordination.
HKEX will support the transition through a three-layer framework. The first layer extends settlement instruction windows, adds free-of-payment settlement runs and provides earlier risk reports.
It also introduces real-time instruction updates via API and real-time matching on the Orion Cash Platform.
The second layer covers new workflow tools, including a Settlement Profile Repository and a Status Dashboard, designed to improve settlement visibility, automation and data quality.
A separate ETP platform will standardise ETF creation and redemption for T+1.
Under the third layer, the exchange will engage industry associations, facilitate working groups and host townhalls in 2026.
Southbound Stock Connect trades, which follow Hong Kong’s settlement arrangements, will also move to T+1
“HKEX is committed to delivering the infrastructure, tools and support needed for implementation, whilst working closely with market participants to ensure readiness,”
said Bonnie Y Chan, HKEX Chief Executive Officer.
HKEX encourages market participants to begin preparing now and will announce the exact transition date in due course.
Featured image: Edited by Fintech News Hong Kong, based on image by mrsiraphol via Magnific.
