Regarding whether the minimum trading unit for Hong Kong stocks can change from "per lot" to "per share", Bonnie Chan Yi-ting stated that many fees for HKEX and Institutions are based on per lot. Once changed, it requires system adjustments, increases the computational load for the industry, and needs careful evaluation and consultation with the industry.
Recently, the central government's latest document proposed allowing Bay Area enterprises listed in Hong Kong to list on the Shenzhen Stock Exchange. $HKEX (00388.HK)$In an interview, CEO Bonnie Chan Yi-ting mentioned that whether it is "first A then H" or "first H then A", it can allow enterprises to reach more investors without diluting the investor base. It is believed that this can increase stock liquidity and enhance valuation, creating a virtuous cycle. Bonnie Chan Yi-ting used the latest$CATL (03750.HK)$Hong Kong listing as an example, stating that the liquidity of A-shares also increased after listing. Additionally, regarding the settlement system reform, HKEX plans to publish a white paper on the "T+1" settlement cycle within the year.
Recently, the new IPO market in Hong Kong has become more active, with companies adopting the "first A then H" strategy becoming the main force in fundraising. Bonnie Chan Yi-ting stated that HKEX is currently processing over 160 listing applications, among which nearly 20 enterprises are proposing to raise over 1 billion dollars.
In addition to Chinese-funded enterprises, Hong Kong has recently strengthened efforts to attract companies from emerging markets such as the Middle East and Southeast Asia to list. Bonnie Chan Yi-ting stated that Hong Kong may be the best location (sweet spot) not for attracting unlisted companies to go public, but rather for attracting already listed companies for a second listing in Hong Kong, and mentioned that certain progress has been made in recent months. She explained that these companies are more mature in their local markets, but their local markets may not have sufficient depth to support their financing needs, and Hong Kong can play an advantageous role in this.
In the past 12 months, at least three Singaporean companies have gone public in Hong Kong, and one Thai company is about to list in Hong Kong. Additionally, Southeast Asian low-cost airline AirAsia's parent company Capital A announced in early May that it is researching the possibility of a dual listing in Hong Kong, aiming to attract more international and mainland investors, but has not yet submitted a formal application.
Regarding market structure reform, Bonnie Chan Yi-ting reiterated that a white paper on the 'T+1' settlement cycle will be released this year, emphasizing that the Exchange has no established position. In recent years, several major markets have studied shortening the stock settlement cycle, including the U.S. last year, which changed from 'T+2' to 'T+1'. Bonnie Chan Yi-ting pointed out that shortening the cycle can achieve a 'goods rotation' effect but also increases operational risks; if there is a problem with the process, the repair time might be shorter.
Regarding whether the minimum trading unit for Hong Kong stocks can change from "per lot" to "per share", Bonnie Chan Yi-ting stated that many fees for HKEX and Institutions are based on per lot. Once changed, it requires system adjustments, increases the computational load for the industry, and needs careful evaluation and consultation with the industry.
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