Hong Kong Exchange Targets T+1 Settlement in Second Half of 2028

Hong Kong Exchanges and Clearing Limited (HKEX) is targeting the second half of 2028 to move Hong Kong’s cash equities market to T+1 settlement, a shorter trade-to-settlement cycle that depends on market readiness and regulatory approval.

HKEX published its consultation conclusions on Oct. 16 after receiving 109 nonduplicate responses from brokers, custodians, investment managers, industry associations, technology providers, investors and other market participants. Responses broadly supported the shift.

T+1 means a trade is settled one business day after its transaction date. Participants pointed to potential gains in market efficiency and capital use, lower settlement risk, and stronger competitiveness for Hong Kong as an international financial center.

HKEX urged market participants to begin preparing their systems and operations. Industrywide testing and readiness assessments are planned for a later stage. The exchange will announce an exact transition date in due course, subject to approval and market readiness.