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The Hong Kong exchange has released a discussion paper regarding the shortening of the settlement cycle for the Hong Kong stock spot market.
Jin10 data reported on July 16, the Hong Kong exchange today published a discussion paper regarding the shortening of the settlement cycle for the Hong Kong stock spot market. The Hong Kong exchange has been using a T+2 settlement cycle since 1992, while other international stock markets have gradually shortened their settlement cycles to T+2 over the past 20 years. In recent years, many markets have transitioned to or are considering transitioning to T+1 or shorter settlement cycles. According to statistics from the World Federation of Exchanges and international exchanges, the Hong Kong exchange expects that by the end of 2027, 88%* of global stock market transactions will adopt T+1 or T+0 settlement cycles. This discussion paper outlines the potential benefits and challenges of shortening the current T+2 settlement cycle in the Hong Kong stock spot market and references the experiences of other major markets in the process of shortening settlement cycles, providing a basis for in-depth discussions among all market participants.