The Hong Kong Stock Exchange simplifies the framework for trading units, involving standardized guidelines for the number of shares per trading unit and the value per trading unit.

On June 30, HKEX issued a consultation summary on the consultation paper on optimizing the trading unit framework of the Hong Kong securities market. It was mentioned that the decision was made to take optimization measures for applicable securities (including stocks and real estate investment trusts): standardized the number of shares per lot to eight specified amounts, which are 1 share, 50 shares, 100 shares, 500 shares, 1,000 shares, 2,000 shares, 5,000 shares, and 10,000 shares; for issuers with a lot size greater than 100 shares, a maximum lot value guideline of HKD 50,000 per lot was introduced; and the minimum lot value guideline was reduced from HKD 2,000 to HKD 1,000. HKEX Market Head Calvin Yiu said, "Implementing the simplification of trading units is an important step for HKEX to lower market thresholds and facilitate investor participation in stock trading. We are pleased that the market widely supports these arrangements that help optimize market mechanisms and improve trading efficiency. Standardizing the number of shares per lot will provide a solid foundation for us to continuously improve market microstructure and pave the way for considering standardizing the number of shares per lot in the future. This reform, in conjunction with other market infrastructure optimization measures and product innovations, will further consolidate Hong Kong's position as a leading international financial center." To facilitate a smooth transition in the market, HKEX will implement the adjustments in two phases: Phase One (Effective July 2, 2026) Prospective Issuers Prospective issuers who submit their initial public offering applications before July 2, 2026 must comply with the new maximum and minimum lot value guidelines; Prospective issuers who submit their initial public offering applications on July 2, 2026, or later (including resubmitting initial public offering applications that expired before July 2, 2026) must comply with all requirements of the new trading unit framework. Existing Issuers Existing issuers must comply with the new maximum and minimum lot value guidelines. If existing issuers undertake corporate actions involving changes in lot size, share consolidation, or share split, they must comply with all requirements of the new trading unit framework. Maximum Lot Value Guideline The maximum lot value guideline only applies to applicable securities with a lot size greater than 100 shares. HKEX will conduct regular reviews of the lot value and notify issuers whose daily average closing lot value exceeds HKD 50,000 at the end of the six-month evaluation period, requiring them to lower the lot value within six months after the end of the evaluation period. Phase Two (Effective from the launch of paperless securities market on November 16, 2026) All issuers must adopt one of the standardized number of shares per lot within six months after completing the transition to the paperless securities market. For issuers who have completed the transition to the paperless securities market, no parallel trading is required when changing the number of shares per lot. In addition to optimizing the trading unit framework, HKEX also plans to optimize odd lot trading mechanisms and is studying the introduction of a new automatic matching trading mechanism, which may be launched as early as the third quarter of 2027 upon regulatory approval and market readiness. More details will be announced in due course.