HKEX to Reduce Minimum Spreads in Hong Kong Securities Market

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the reduction of minimum spreads for equities, Real Estate Investment Trusts (REITs), and other Applicable Securities (excluding ETPs, debt securities, ETOs, and Structured Products) in two phases. The changes aim to lower transaction costs and improve liquidity. Phase 1 will be implemented in mid-2025, reducing minimum spreads by 50%-60%, with Phase 2 following in mid-2026, pending a review of Phase 1. In addition, HKEX will restructure the stock settlement fee, adjust the order input price limit, and modify market-making obligations to support these changes. The initiative follows positive feedback from market participants and aims to enhance Hong Kong’s market efficiency and competitiveness.

Resources: https://www.hkex.com.hk/News/Market-Communications/2024/241217news?sc_lang=en