Hong Kong Stock Settlement Mechanism Set for Change: “T+2” to Shift to “T+1” by Second Half of 2028

On October 16, HKEX released a consultation conclusions paper on shortening the settlement cycle for the Hong Kong cash equities market. There was broad market support for implementing a “T+1” settlement cycle in Hong Kong stocks. Having considered feedback from market participants, HKEX plans to complete the related transition in the second half of 2028, subject to market readiness and approval from regulators. Industry insiders said the introduction of the “T+1” settlement cycle is a major reform of Hong Kong's stock settlement and trading market, allowing investors to reinvest and rebalance their portfolios in a shorter settlement cycle, improving capital turnover, and is expected to boost trading activity in Hong Kong stocks. (Shanghai Securities News)