HKEX Said to Plan Delaying T+1 Settlement Cycle to 2028; Market Participants Need More Time to Prepare

It is reported, citing sources, that the plan to shorten the stock settlement cycle to T+1 will be delayed until 2028, as market participants want more time to prepare. According to a consultation paper, HKEX (00388) originally planned to shorten the stock settlement cycle from T+2 to T+1 as early as the fourth quarter of next year. Sources said the consultation results will be announced soon, but because many participants said they want more time for training before the settlement cycle change, HKEX may extend the implementation timeline. Large institutional investors are more concerned than local brokers, because time zone differences leave less than one day of actual settlement preparation time. Before confirming the launch date, HKEX will allow brokers, banks and investors to conduct system testing and attend workshops. The report cited an HKEX spokesperson as saying that many stakeholders' views were received during the consultation period that ended in May, and their feedback will help the Hong Kong securities market transition smoothly and in an orderly manner to the T+1 settlement cycle. The spokesperson also said that a summary of the consultation paper is being prepared, and more details will be announced in due course.