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BusinessBanking & Finance

Hong Kong to cut time between IPO pricing and trading of shares in a move likely to boost city’s appeal as listing destination

  • New digital interface set to launch in October will cut the settlement period from five business days to two, HKEX said on Wednesday
  • Move will ‘enhance market efficiency and strengthen the competitiveness’ of Hong Kong’s IPO market, says HKEX boss Nicolas Aguzin

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The operator of Hong Kong stock exchange is to launch an initial public offering (IPO) settlement platform that will shorten the time between the pricing of a new listing and the trading of shares. Photo: Bloomberg
Mia Castagnone
The operator of Hong Kong stock exchange is to launch an initial public offering (IPO) settlement platform that will shorten the time between the pricing of a new listing and the trading of shares.
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“FINI”, which stands for Fast Interface for New Issuance, is set to launch in October, and will cut the time between IPO pricing and commencement of trade from five business days to two, Hong Kong Exchanges and Clearing (HKEX) said in an announcement on Wednesday.

Operating on a cloud-based platform, FINI will enable different IPO stakeholders such as sponsors, underwriters, legal advisers, banks, clearing participants, share registrars and regulators to collaborate and perform their respective roles in an offering digitally in real time.

A shorter settlement time should free up capital, ultimately helping bolster the city’s IPO market.

“By shortening the time between IPO pricing and the start of trading, [we can] enhance market efficiency and strengthen the competitiveness and attractiveness of Hong Kong’s IPO market,” said HKEX chief executive officer Nicolas Aguzin.

The new system will ‘enhance market efficiency and strengthen the competitiveness’ of Hong Kong’s IPO market, said HKEX boss Nicolas Aguzin. Photo: Elson Li
The new system will ‘enhance market efficiency and strengthen the competitiveness’ of Hong Kong’s IPO market, said HKEX boss Nicolas Aguzin. Photo: Elson Li
Aguzin said FINI’s development had “received strong support from market stakeholders, demonstrating the widespread appetite for progressive innovations in the Hong Kong IPO market”.
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