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HKEX to Expand Closing Auction Session to All Equities and Funds

Market Operations
05 Jul 2019

  • Further CAS expansion three years after initial introduction in 2016
  • Effective on 8 October 2019 to cover all equities and funds
  • Turnover contribution in CAS versus CAS securities’ full day turnover has increased from 6 per cent to over 8 per cent since launch in 2016

 

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the further expansion of its Closing Auction Session (CAS) to cover all equities and funds traded on The Stock Exchange of Hong Kong.

"Since its launch three years ago, the Closing Auction Session has recorded robust volumes, helping meet the diverse trading needs of investors in our market," said Wilfred Yiu, HKEX Head of Markets.

"The expansion of the Closing Auction Session to all equities and funds will further improve trading liquidity at close, simplify trading operations of market participants, and standardise closing times for equities," he said.
 
Effective 8 October 2019, the list of securities covered by CAS will be expanded to include all equities (including depositary receipts, investment companies, preference shares and stapled securities), as well as funds (including exchange traded funds (ETFs) and real estate investment trusts).  The expansion will increase the number of securities covered by CAS from about 700 to over 2,600.  CAS currently covers all constituents of the Hang Seng Composite LargeCap, MidCap and SmallCap indices, as well as H shares that have corresponding A shares listed on a Mainland exchange, and all ETFs.

The newly included securities will use the existing CAS model, including the price limit of five per cent during CAS.  Investors will have an additional trading session of up to 10 minutes to complete their daily trades with CAS.

Introduced in July 2016, CAS is a trading mechanism that allows execution at securities' closing prices.  For securities covered by CAS, trading turnover during CAS has increased gradually from six per cent at launch to more than eight per cent of their full day turnover in the past twelve months.

Structured products, leveraged and inverse products, equity warrants, rights and debt securities will not be included in CAS.

Further information on expanded CAS is available on the HKEX website.

   

 
About HKEX


Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange, in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

 

 
 

Ends

Updated 08 Jul 2019

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