Core Viewpoint - The Hong Kong stock market is expected to transition to a "T+1" settlement cycle after 33 years, which will significantly shorten the settlement period for investors and enhance market efficiency [1][5][7]. Group 1: Settlement Cycle Changes - The Hong Kong stock market has been using a T+2 settlement cycle since 1992, despite implementing T+0 trading [1][7]. - The proposed shift to T+1 is anticipated to reduce systemic risks and improve market efficiency [1][8]. - Currently, markets such as mainland China, the US, Canada, Mexico, Argentina, and India already operate on a T+1 settlement cycle, with Europe expected to follow by 2027 [5][6]. Group 2: Market Impact - The total market capitalization of the Hong Kong stock market reached HKD 42.7 trillion by mid-2025, a 70% increase over the past decade, with average daily trading volume rising by 246% to HKD 240.2 billion [7]. - The transition to T+1 is expected to enhance liquidity, reduce transaction costs, and improve capital utilization for both retail and institutional investors [8][9]. - The T+1 settlement cycle will also facilitate faster capital turnover, allowing investors to reinvest funds more quickly [8][9]. Group 3: Challenges and Considerations - The implementation of T+1 will require significant adjustments in operational models for brokers and banks, including the need for system upgrades to handle the reduced settlement time [9][10]. - The complexity of multi-currency settlements in the Hong Kong market poses additional challenges compared to markets with single currency settlements [9][10]. - The transition will also affect the Hong Kong Stock Connect program, which currently operates on a T+2 basis, necessitating adjustments for mainland investors [10][11]. Group 4: Future Opportunities - The T+1 settlement cycle is expected to encourage the development of diverse trading strategies, such as arbitrage between A-shares and H-shares, and enhance trading activity among southbound funds [11]. - The overall acceleration of settlement processes is projected to boost trading efficiency in the Hong Kong securities market [11].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has released a discussion paper aimed at shortening the settlement cycle for the stock cash market from T+2 to T+1, encouraging market participants to discuss how and when this change can be implemented [1][2]. Group 1: Market Context - Hong Kong is one of the most active capital markets globally, with over 2,600 companies listed and an average daily trading volume exceeding HKD 240 billion in the first half of 2025 [2]. - The current T+2 settlement cycle has been in place since 1992, attracting global investors and fostering a robust financial ecosystem through active corporate financing and cross-border investment flows [2]. Group 2: Global Trends - Other major global markets have transitioned to T+2 settlement cycles over the past 20 years, with many now considering or adopting T+1 or shorter cycles [2]. - Markets currently using T+1 settlement include mainland China, the United States, Canada, Mexico, Argentina, and India, with an expectation that by 2027, 88% of global stock market transactions will utilize T+1 or T+0 settlement cycles [2][3]. Group 3: Benefits and Challenges - Transitioning to a T+1 settlement cycle could enhance market efficiency, reduce systemic risk, and align the Hong Kong market more closely with international standards [3]. - Challenges include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes to maintain operational efficiency [3]. Group 4: Implementation and Participation - The discussion on the settlement cycle is limited to the secondary market for stock cash transactions and does not involve primary market settlements [3]. - The HKEX encourages all market participants to submit their suggestions by September 1, 2025, to help establish a timeline for implementation [3]. - HKEX's CEO emphasizes the importance of collaboration within the financial community to adapt to evolving global market conditions and optimize the financial infrastructure [3].

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - As of the end of June, the company's PE ratio stands at 37.51x, which is at the 55th percentile historically since 2016, indicating a certain level of investment value. It is expected that with the continued enhancement of the mutual access policy in the Hong Kong capital market, liquidity in the Hong Kong stock market will continue to rise, leading to an increase in overall market activity and valuation. The company is projected to achieve revenues and other income of HKD 27.4 billion, 29.9 billion, and 32.4 billion for 2025-2027, with net profits attributable to shareholders of HKD 16.8 billion, 17.6 billion, and 19.4 billion, corresponding to PE valuations of 32.2x, 30.8x, and 27.9x respectively [2][48]. Market Environment - The Hong Kong stock market continued its upward trend in June, driven by domestic policy support, with the Hang Seng Index and Hang Seng Tech Index rising by 20.0% and 18.7% respectively compared to the end of 2024. The average daily trading volume (ADT) for the Hong Kong Stock Exchange in June was HKD 230.2 billion, reflecting a month-on-month increase of 9.4% and a year-on-year increase of 106.9% [11][17]. - The IPO scale in June saw 15 new stocks listed, totaling HKD 27.9 billion, which is a significant year-on-year increase of 606% despite a month-on-month decrease of 51% [27][28]. Business Segments - **Spot Market**: The overall Hong Kong stock market showed high trading activity, with the ADT for the Hong Kong stock market reaching HKD 230.2 billion in June, up 9.4% month-on-month and 106.9% year-on-year. Northbound trading ADT was HKD 162.9 billion, and southbound trading ADT was HKD 120.8 billion, reflecting increases of 7.5% and 27.9% month-on-month respectively [8][17]. - **Derivatives Market**: In June, the average daily volume (ADV) for futures was 57.3 million contracts, down 2.4% month-on-month and 8.4% year-on-year, while the ADV for options was 82.0 million contracts, up 1.9% month-on-month and 9.7% year-on-year [21]. - **Commodity Market**: The LME daily average trading volume in June was 749,000 contracts, reflecting increases of 6.0% month-on-month and 11.2% year-on-year [24]. - **Primary Market**: The number of new listings in the Hong Kong stock market for the first half of 2025 reached 43, with a total scale of HKD 1,067 billion, representing a year-on-year increase of 688.6% [27]. Investment Income - As of the end of June, the HIBOR rates for 6 months, 1 month, and overnight were 2.38%, 0.73%, and 0.03% respectively, showing a month-on-month increase while year-on-year rates have decreased [36].

Group 1 - The Hong Kong Stock Exchange (HKEX) has published a discussion paper on shortening the settlement cycle for the stock cash market from T+2 to T+1, which has been the standard since 1992 [1] - The transition to T+1 is expected to enhance market efficiency, reduce systemic risk, and align Hong Kong's market more closely with other international markets [1] - Challenges include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes to maintain operational efficiency [1] Group 2 - Goldman Sachs identified five key priorities for HKEX management this year, including narrowing the bid-ask spread for small and large stocks, with an expected reduction of about 50% for half of the stocks based on average daily trading volume [2] - The potential transition to a T+1 settlement cycle is technically feasible by the end of the year, but the market ecosystem needs to be adequately prepared [2] - Other priorities include reviewing new stock rules, developing a derivatives platform set to launch in 2028, and exploring related businesses that complement existing market advantages, such as data platforms and integrated fund platforms [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is considering shortening the settlement cycle for its stock cash market from T+2 to T+1 or even T+0, aligning with global trends where 88% of stock markets are expected to adopt T+1 or T+0 by the end of 2027 [1][2] Group 1 - The HKEX has maintained a T+2 settlement cycle since 1992, while other international markets have gradually moved to T+2 over the past 20 years [1] - HKEX CEO Charles Li emphasized the need for continuous optimization of Hong Kong's financial market infrastructure to keep pace with global developments [1] - The transition to T+1 is expected to enhance market efficiency, reduce systemic risk, and better integrate Hong Kong's market with international markets [1] Group 2 - Challenges of moving to T+1 include addressing time zone differences, foreign exchange conversions, and the need for market participants to upgrade systems and automate processes [2] - Goldman Sachs identified five key priorities for HKEX management, including narrowing the bid-ask spread for small and large stocks, preparing for T+1 settlement, reviewing new stock rules, developing derivative platforms, and exploring complementary businesses [2] - The discussion on the settlement cycle pertains only to the secondary market for stock cash transactions and does not include primary market transactions such as IPO subscriptions [2]

Core Viewpoint - Hong Kong Stock Exchange is proposing to shorten the stock settlement cycle from T+2 to T+1, aiming to enhance the efficiency of the financial market and align with global trends [1]. Group 1: Market Context - The current settlement cycle in Hong Kong has been T+2 since 1992, while many international markets have transitioned to T+1 or shorter cycles over the past 20 years [1]. - According to the World Federation of Exchanges and International Exchanges statistics, it is projected that by the end of 2027, 88% of global stock market transactions will adopt T+1 or T+0 settlement cycles [1]. Group 2: Leadership Statements - The CEO of Hong Kong Stock Exchange, Charles Li, emphasized the importance of optimizing the financial market infrastructure to keep the financial ecosystem robust and up-to-date [1]. - He called for collaboration within the Hong Kong financial community to implement necessary optimization measures and encouraged market participants to actively engage in discussions regarding the transition [1].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is initiating discussions to shorten the settlement cycle for the stock cash market, currently at T+2, to align with global trends and enhance market efficiency [2][4][5] Group 1: Settlement Cycle Changes - HKEX has released a discussion paper regarding the shortening of the settlement cycle for the stock cash market, which has been T+2 since 1992 [2][3] - The global trend shows a shift towards shorter settlement cycles, with 88% of global stock transactions expected to adopt T+1 or T+0/T+1 cycles within the next two years [3] - HKEX emphasizes the need for timely discussions on when and how to implement changes to the settlement cycle, rather than hesitating on the decision to change [4][5] Group 2: IPO and Listing Reforms - In the first half of the year, Hong Kong's market saw 42 IPOs raising over HKD 107 billion, a 22% increase compared to the previous year, making it the leading market globally [8] - HKEX and the Securities and Futures Commission are reviewing the listing system to enhance competitiveness and attract more quality companies to list in Hong Kong [8][9] - The exchange has simplified listing requirements for overseas issuers and expanded the list of recognized stock exchanges, now including 20 exchanges, to facilitate compliance and second listings [8][9]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has published a discussion paper aimed at shortening the settlement cycle for the stock cash market, currently at T+2, to align with global trends towards T+1 or shorter cycles [1]. Group 1: Current Settlement Cycle - The HKEX has maintained a T+2 settlement cycle since 1992, while many international markets have moved to T+2 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 settlement cycles [1]. Group 2: Benefits and Challenges - The discussion paper outlines potential benefits and challenges of shortening the settlement cycle in the Hong Kong stock cash market [1]. - It references experiences from other major markets that have undergone similar transitions, providing a foundation for in-depth discussions among market participants [1]. Group 3: Participation and Feedback - The discussion is limited to the settlement of secondary market transactions and does not include primary market transactions, such as new stock subscriptions [1]. - HKEX invites market participants and stakeholders to engage in the discussion and submit feedback by September 1, 2025, through their website [1].

Core 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].

金十数据7月16日讯，香港交易所今天刊发了有关缩短香港股票现货市场结算周期的讨论文件。香港交 易所股票现货市场自1992年以来一直采用T+2结算周期，而其他国际股票市场在过去20年间也逐渐将结 算周期缩短至T+2。近年来，许多市场已转向或正在考虑转向T+1或更短的结算周期。根据世界交易所 联合会和国际交易所的统计数据，香港交易所预计，到2027年底，全球股票市场88%*的交易将采用 T+1或T+0结算周期。本讨论文件列出了缩短香港股票现货市场现行T+2结算周期的潜在好处和挑战， 并参考了其他主要市场在缩短结算周期过程中的经验，为所有市场参与者展开深入讨论提供了基础。 香港交易所发布有关缩短香港股票现货市场结算周期的讨论文件 ...