HKEX(HK:00388) Mei Ri Jing Ji Xin Wen·2025-07-16 10:11Core Viewpoint - Hong Kong Stock Exchange (HKEX) is initiating discussions on shortening the settlement cycle for the stock cash market from T+2 to T+1, aiming to align with global market trends and enhance market efficiency [1][2]. Group 1: Market Transition - The HKEX has maintained a T+2 settlement cycle since 1992, while many global markets have transitioned to T+1 or shorter cycles over the past 20 years [1]. - By the end of 2027, it is projected that 88% of global stock market transactions will adopt T+1 or T+0/T+1 settlement cycles [1]. Group 2: Benefits and Challenges - Transitioning to T+1 is expected to improve market efficiency, reduce systemic risk, and better integrate Hong Kong's market with other global markets [2]. - Challenges include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes [2]. Group 3: Market Statistics - As of mid-2025, over 2,600 companies are listed on the HKEX, with an average daily trading volume of HKD 240.2 billion in the first half of the year [2].