- HKEX proposes to standardise board lot units for securities trading, cutting the number of board lot units from over 40 to just eight options
- Minimum board lot value guidance to be lowered by half to $1,000; introduction of ceiling guidance of $50,000
- Consultation period to last 12 weeks until 12 March 2026
Hong Kong Exchanges and Clearing Limited (HKEX) today (Thursday) published a consultation paper on proposed enhancements to the board lot framework in the Hong Kong securities market, supporting efficiencies across trading, clearing and settlement processes. The consultation is open for a 12-week period, concluding on Thursday, 12 March 2026.
HKEX has conducted a holistic review of the existing board lot mechanism, and is now seeking market feedback on adopting a more streamlined and simplified framework for board lots. The number of different board lot units available for Applicable Securities including equities1 and REITs, will be reduced to eight standardised board lot unit options. In addition to this there will be a significant reduction in minimum board lot value guidance, as well as the addition of new maximum board lot value guidance.
These proposed changes are aimed at enhancing operational efficiency of the secondary market, as well as supporting investor participation in Hong Kong’s markets by making board lot values more accessible for retail investors.
HKEX Head of Markets, Gregory Yu, said: “We are delighted to present for consultation, enhancements to streamline the board lot framework, as part of our ongoing commitment to enhance market vibrancy and boost trading efficiencies. These proposals aim to make trading simpler and more accessible to all, while also catering to the needs and distinctive features of Hong Kong’s financial markets. Moving to eight standardised board lot units from over 40 currently will help streamline trading and operational processes whilst maintaining flexibility for issuers and will be the first step of a longer-term journey to transition to a single unified board lot unit. We look forward to receiving comments from our stakeholders as we work together to reinforce Hong Kong’s position as a leading international financial centre.
Key proposals include:
Standardisation of Board Lot Units
- Issuers can select board lot units from a set of eight standardised options: 1, 50, 100, 500, 1,000, 2,000, 5,000, and 10,000 shares.
- These board lot units have been selected to provide options for issuers across different price bands, limiting both the impact to issuers and the creation of odd lots.
- In order to comply with standardisation, approximately 25 per cent of listed issuers will need to adjust their board lot sizes.
Board Lot Value Floor and Ceiling Guidance
- Board lot value guidance seeks to ensure that board lot values are not so low that they result in negative value trades (where execution cost exceeds trade value) or so high that board lots become unaffordable.
- Board lot value floor guidance will be reduced by 50 per cent from the current level of $2,000 to $1,000 to account for lower costs to execute trades.
- A new board lot value ceiling of $50,000 will be introduced for issuers that adopt board lot units larger than 100 shares.
Implementation Arrangements
The new board lot framework will be rolled out in phases to ensure a smooth transition for the market. In the first phase, new issuers will be required to list with standardised board lot units and adhere to board lot value guidance, while existing issuers will be required to follow the updated guidance on board lot values.
During phase two, each existing issuer will be required to adopt one of the standardised board lot units, within a specified period following their transition to uncertificated shareholding under the Uncertificated Securities Market (USM)2 initiative. Aligning the implementation schedule of the two initiatives avoids the need to reprint share certificates following board lot unit changes. The approach is designed to support a gradual transition, maximise operational efficiency and minimise market disruption, with further details on the transition to be communicated at a later stage.
Meanwhile, HKEX is also considering enhancements to its odd lot trading mechanism to improve trading efficiency under the new board lot framework. More details will be announced in due course.
The consultation period will close on Thursday, 12 March 2026. Interested parties are encouraged to respond to the Consultation Paper by filling out and submitting a questionnaire on the HKEX website.
Notes:
- The following instruments are excluded from the scope of the proposal: Exchange Traded Products, Structured Products, debt securities, equity warrants, investment companies (listed under Chapter 21 of the Listing Rules), Special Purpose Acquisition Company shares and warrants.
- The Uncertificated Securities Market is a new market infrastructure that replaces paper share certificates with electronic records, making it easier and faster for people to hold and transfer shares.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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