The Hong Kong stock market is receiving an important signal of institutional optimization. Recently, the Hong Kong Stock Exchange officially published a consultation file to solicit opinions from the market on optimizing the per lot trading organization framework. It plans to significantly reduce the current 43 types of per lot trading organizations to 8 standard organizations and adjust the guidelines for the upper and lower limits of per lot value. This rule change directly targets the pain points of trading convenience and liquidity in Hong Kong stocks, which has attracted widespread market attention and is seen as a key measure for the Hong Kong Stock Exchange to enhance its market competitiveness.
The core content of this rule adjustment is quite targeted. The consultation file of the Hong Kong Stock Exchange clearly states that it plans to standardize the number of shares per lot into 8 types, including 1 share, 50 shares, and 100 shares. It is expected that 25% of issuers will need to adjust their existing number of shares per lot. At the same time, in order to balance transaction costs and investment thresholds, the lower limit of the per lot value guidance will be halved from HKD 2000 to HKD 1000, and an additional upper limit of HKD 50000 will be imposed on issuers with more than 100 shares per lot. The implementation path will be pushed forward in stages, with new issuers directly adopting the new standards, while existing issuers will complete adjustments after transitioning to a paperless market to ensure a smooth transition in the market.
The proactive reform of the Hong Kong Stock Exchange is a precise response to the existing pain points in the market. The current trading structure of Hong Kong stocks is complex and diverse, which not only increases the understanding and operating costs for investors, especially southbound funds, but also restricts the improvement of market liquidity. According to data, there are currently 19 companies in the Hong Kong stock market with a per share value exceeding HKD 50000, including popular stocks such as Tencent Holdings and CATL. The high threshold has kept many retail investors out. The relevant person in charge of the Hong Kong Stock Exchange stated that this optimization aims to lower the threshold for market participation and improve trading efficiency. The long-term goal is to promote the standardization of trading models between Hong Kong stocks and international mainstream markets.
The market's response to this rule adjustment is divided, but overall it tends to be positive. Most analyses believe that lowering the threshold for per lot value is expected to inject liquidity into Hong Kong stocks, especially attracting more retail investors to participate in trading high-quality and high priced stocks, and improving the current situation of tight market liquidity. For issuers, standardized trading organizations will increase stock trading activity and enhance financing capabilities. However, some industry insiders are concerned that the increased participation of retail investors may exacerbate the volatility of some individual stocks, while the business models of over 500 securities firms in Hong Kong will also face adaptation challenges. However, the Hong Kong Stock Exchange cited global market research data and pointed out that the size of trading organizations is not necessarily related to stock price fluctuations.
This consultation is a continuation of the ongoing institutional reform in the Hong Kong stock market. In recent years, the Hong Kong Stock Exchange has successively launched measures such as the 18C chapter special technology listing system and optimized the IPO pricing mechanism, continuously improving the market ecology. If this round of organizational optimization is successfully implemented, it will further consolidate the foundation of the Hong Kong stock system and enhance its international appeal. Against the backdrop of rising expectations of global liquidity easing and increased demand for the return of Chinese concept stocks, Hong Kong stocks have activated market vitality through institutional innovation, which is expected to better connect global capital with high-quality assets and consolidate its position as an international financial center. The consultation period has officially begun, and the feedback from all parties in the market will provide important references for the final implementation of the rules.
HongKong.info Committed to providing fair and transparent reports. This article aims to provide accurate and timely information, but should not be construed as financial or investment advice. Due to the rapidly changing market conditions, we recommend that you verify the information yourself and consult a professional before making any decisions based on this information.
Popular Hong Kong News
Recommended Reading
