HKEX CEO Outlines Tech-Driven IPO Reform, Shorter Settlement Cycle
RTHK · 2 SOURCES1 day ago6 MIN
Summary
Hong Kong Exchanges and Clearing (HKEX) Chief Executive Officer Agnes Chan (陳翊庭) has unveiled plans to leverage technology to streamline the IPO approval process amid a surge of new listings in the city. Speaking on RTHK's "Broadcast Drive Interview Room" programme, Chan emphasised that quality will never be compromised for speed. The Stock Exchange and the Securities and Futures Commission (SFC) have committed to a 40-working-day review target with two rounds of regulatory feedback for applicants whose documentation is complete, while firms dual-listing on the A-shares market can benefit from a compressed 30-working-day, single-review process. On the settlement front, Chan stated that after extensive market consultation, HKEX's internal assessment concludes Hong Kong has the capability to shift from T+2 to T+1, though supporting infrastructure must be in place before implementation.
Key Points
- HKEX is deploying artificial intelligence to screen whether IPO applicants satisfy all statutory disclosure requirements, complementing staff recruitment to handle workload
- The Stock Exchange and SFC have pledged 40 working days plus two rounds of regulatory feedback for complete applications; A-share dual-listers qualify for 30 working days plus one review round
- Hong Kong reclaimed the global top position for IPO fundraising last year, validating the effectiveness of recent reforms
- HKEX's internal review determines Hong Kong can implement T+1 settlement, but supporting market infrastructure and participant readiness are prerequisites
- Shortening the settlement cycle is characterised as a worldwide inevitability, with considerations given to stock-borrowing turnover and foreign investors' currency-conversion needs
Why It Matters
These initiatives position Hong Kong as a more attractive listing venue in an increasingly competitive regional market, particularly against rivals seeking to lure mainland Chinese companies away from New York and Singapore. The shift toward T+1 settlement, if successfully implemented, would align Hong Kong with international standards and potentially reduce counterparty risk in the city's multi-trillion-dollar equity market .
These initiatives position Hong Kong as a more attractive listing venue in an increasingly competitive regional market, particularly against rivals seeking to lure mainland Chinese companies away from New York and Singapore. The shift toward T+1 settlement, if successfully implemented, would align Hong Kong with international standards and potentially reduce counterparty risk in the city's multi-trillion-dollar equity market .