HKEX(HK:00388) Zheng Quan Shi Bao·2025-12-18 10:05Core Viewpoint - Hong Kong Stock Exchange (HKEX) is initiating a consultation to optimize the trading unit framework in the Hong Kong securities market, aiming to enhance trading, settlement, and clearing efficiency [1][2]. Group 1: Consultation Details - The consultation period will last for 12 weeks, ending on March 12, 2026 [1]. - HKEX has reviewed the current trading unit mechanism and is proposing to simplify it by consolidating the number of trading units from over 40 to 8 standard options [2][3]. Group 2: Proposed Changes - The proposed standard trading units will include: 1 share, 50 shares, 100 shares, 500 shares, 1000 shares, 2000 shares, 5000 shares, and 10000 shares [2]. - The lower limit for the trading unit value will be reduced from 2000 HKD to 1000 HKD, while a new upper limit of 50000 HKD will be introduced for issuers with trading units greater than 100 shares [4]. Group 3: Impact on Market Participants - Approximately 25% of issuers may need to adjust their trading unit sizes if the proposals are implemented [3]. - The new framework aims to lower the entry barriers for retail investors and enhance market participation [1][4]. Group 4: Implementation Phases - The reform will be implemented in phases, with new issuers required to select standardized trading units upon listing, while existing issuers will transition to the revised trading unit values within a specified timeframe [5]. - HKEX is also exploring improvements to the odd lot trading mechanism to further enhance trading efficiency post-reform [5].