Hong Kong Exchange Plans Transition to T+1 Settlement in Second Half of 2028

Hong Kong Exchanges and Clearing Limited (HKEX) published a consultation summary paper on shortening the settlement cycle for the Hong Kong stock cash market, showing broad market support for implementing a T+1 settlement cycle in Hong Kong's securities market. After synthesizing stakeholder feedback, HKEX intends to complete the relevant transition in the second half of 2028, subject to market readiness and regulatory approval. The consultation received 109 non-duplicate responses from market stakeholders including brokers, custodians, investment managers, industry associations, technology vendors, and investors. Respondents endorsed Hong Kong's adoption of a T+1 settlement cycle, agreeing that it would help enhance market efficiency, reduce settlement risk, improve capital efficiency, and strengthen Hong Kong's competitiveness as an international financial center.