- Board lot units in the Hong Kong securities market will be standardised to eight options
- Board lot value will be subject to floor and ceiling guidance of HK$1,000 and HK$50,000 respectively
- The new board lot framework will be implemented in phases, starting 2 July 2026
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to publish today (Tuesday) the conclusions of its consultation on proposed enhancements to the board lot framework for the Hong Kong securities market.
The consultation received 85 responses from a broad range of market participants across the primary and secondary markets. All proposed enhancements received strong market support, with respondents recognising the potential for enhanced operational efficiencies and improved accessibility to the Hong Kong securities market.
Taking into account the feedback received, HKEX will proceed with the following enhancements to the board lot framework for Applicable Securities, which include equities1 and REITs:
- Reduction of the board lot value floor guidance from HK$2,000 to HK$1,0002;
- Introduction of board lot value ceiling guidance at HK$50,000 for issuers that adopt board lot units larger than 100 shares; and
- Standardisation of board lot units to a defined set of eight options: 1, 50, 100, 500, 1,000, 2,000, 5,000 and 10,000 share(s).
HKEX Head of Markets, Gregory Yu, said: “We are delighted to introduce a more streamlined board lot framework, marking a significant step forward in making our market more accessible and inclusive. The feedback received highlights broad market support for simplifying market arrangements and enhancing trading efficiency. Moving to a more standardised set of board lot units lays a strong foundation for the continued evolution of Hong Kong’s market microstructure, paving the way towards the potential for a unified board lot unit in the longer term. Together with other market infrastructure initiatives and product innovations at HKEX, these enhancements reinforce Hong Kong’s role as a leading international financial centre.”
To facilitate a smooth transition and minimise operational impact on the market, HKEX will adopt a two‑phased implementation approach:
Phase 1 (effective 2 July 2026)
- Prospective issuers
- with IPO application filings made before 2 July 2026 will be required to comply with the updated board lot value floor guidance and the new board lot value ceiling guidance;
- with IPO application filings (including the refiling of IPO applications lapsed before 2 July 2026) made on or after 2 July 2026 will be required to comply with all components of the new board lot framework.
- Existing issuers
- Existing issuers will be required to comply with the updated board lot value floor guidance and the new board lot value ceiling guidance3.
- Existing issuers undertaking corporate actions involving a change of board lot unit, share consolidation or share sub-division, will be required to comply with all components of the new board lot framework.
- Board lot value ceiling guidance
- The ceiling guidance applies only to Applicable Securities with a board lot unit exceeding 100 shares.
- HKEX will regularly review board lot values and notify issuers whose average daily closing board lot value during the six-month assessment period4 exceeds HK$50,000. Issuers will be asked to reduce the board lot value within six months of the end of the relevant assessment period.
Phase 2 (effective upon the launch of USM on 16 November 2026)
- All issuers will be required to adopt one of the standardised board lot units within six months of completing the Uncertificated Securities Market (USM) transition process.
- The requirement to conduct parallel trading for a change of board lot unit will be removed for issuers that have completed the USM transition process.
In conjunction with the enhanced board lot framework, HKEX also plans to enhance the odd lot trading mechanism, with the exploration of a new automatic matching mechanism considered to be launched earliest by the third quarter of 2027, subject to regulatory approval and market readiness. Further details of this enhancement will be announced in due course.
The consultation conclusions and copies of the respondents’ submissions are available on the HKEX website. The Guide on Trading Arrangements for Selected Types of Corporate Actions has also been updated to reflect the new board lot framework and associated changes.
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.
- Only applicable upon initial listing, when the board lot unit is being changed, and when conducting share consolidation or sub-division.
- Issuers that are not Specified Prescribed Securities under the USM regime, which in general are issuers incorporated outside Hong Kong, the Chinese Mainland, Bermuda, or Cayman Islands, would not be expected to observe the board lot value ceiling guidance until such time as they are able to elect to undertake an earlier USM transition.
- The first assessment period will commence in July 2026 and will run from January to June and from July to December each year.
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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