According to reports citing informed sources, the plan to shorten the stock settlement cycle to T+1 will be postponed until 2028, as market participants have requested more time to prepare.
Consultation documents previously showed that Hong Kong Exchanges and Clearing Ltd (ASX: 00388), or HKEX, originally aimed to shorten the stock settlement cycle from T+2 to T+1 as early as the fourth quarter of next year.
Sources indicate that the consultation results are about to be published, but because many participants have expressed a desire for more time to conduct training before the settlement cycle change takes effect, the exchange may extend the implementation timeline.
Large institutional investors are more concerned than local brokers, as time zone differences leave them with less than one day of actual settlement preparation time.
Before confirming the launch date, Hong Kong Exchanges and Clearing Ltd (ASX: 00388) will allow brokers, banks, and investors to conduct system testing and participate in workshops.
The report cited a spokesperson for Hong Kong Exchanges and Clearing Ltd (ASX: 00388) as saying that numerous stakeholder opinions were received during the consultation period that ended in May, and their feedback will help the Hong Kong securities market transition smoothly and in an orderly manner to the T+1 settlement cycle. The spokesperson also stated that a summary of the consultation document is being prepared, and more details will be announced in due course.
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