• FINI to launch in October 2023, reducing Hong Kong’s IPO settlement period from T+5 to T+2
• Final preparations for rollout being held in July and August - FINI users are encouraged to participate in upcoming market practice sessions and market rehearsals
• Relevant rules amendments, approved by the SFC, published today

 

Hong Kong Exchanges and Clearing Limited (HKEX) is today (Wednesday) pleased to announce the launch of FINI, its innovative IPO settlement platform, in October this year. FINI is a major HKEX initiative that will significantly shorten the time between the pricing of an IPO and the trading of shares from five business days (T+5) to two business days (T+2). FINI will modernise and digitalise Hong Kong’s IPO settlement process, driving efficiency and supporting the long term development of Hong Kong as a capital raising centre.

The exact launch date of FINI will be announced several weeks before launch, subject to market readiness.

HKEX Chief Executive Officer Nicolas Aguzin said: “We are delighted to confirm the launch of this major IPO settlement reform. By digitalising, streamlining and modernising IPO settlement workflows, FINI will shorten the time between IPO pricing and the start of trading, enhancing market efficiency and strengthening the competitiveness and attractiveness of Hong Kong’s IPO market.”

He added: “Throughout the conceptualisation, system development and external testing phases of FINI’s development, we have received strong support from market stakeholders demonstrating the widespread appetite for progressive innovations in the Hong Kong IPO market. I would like to thank all those who have provided feedback and contributed to the process as we continue to build the Marketplace of the Future.”

Following the successful completion of the FINI External User Testing earlier this month, HKEX will arrange market practice sessions and market rehearsals in July and August, respectively, to simulate interactive, end-to-end IPO settlement operations under FINI. These sessions will mark the final preparations for the full migration of the market to FINI in October.

Operating on a cloud-based platform, FINI will enable different stakeholders such as IPO sponsors, underwriters, legal advisers, banks, Clearing Participants, share registrars and regulators to collaborate and perform their respective roles in an IPO, digitally. The new platform will also introduce a new public offer pre-funding model to help alleviate the scale of funds that are locked up in over-subscribed IPOs.

With approval from the Securities and Futures Commission, HKEX today also published updates to relevant Listing Rules, Hong Kong Securities Clearing Company Limited (HKSCC) Rules and HKSCC Operational Procedures, which will take effect on the commencement date of FINI.

Other FINI related materials are available on the designated FINI webpage on the HKEX website.

 

 

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 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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