Hong Kong Exchanges and Clearing (HKEX) proposed shortening the cash settlement cycle for share trading from T+2 to T+1. This move aims to improve market efficiency and liquidity by settling trades one day after the transaction, with implementation targeted for the fourth quarter of 2027.

Hong Kong Exchanges and Clearing (HKEX) has proposed halving the cash settlement cycle for share trading as part of efforts to enhance market efficiency and liquidity. The city’s bourse operator said in a consultation paper on Friday that it aimed to implement a “T+1” system – under which trades are settled one day after the transaction – in the fourth quarter of 2027, replacing the existing “T+2” cycle. If adopted, the shortened cycle would apply to equities, exchange-traded products,...