Hong Kong Stock Exchange (00388) will lower the minimum price limit for stocks and the second phase will be launched on August 3rd.

Hong Kong Exchanges and Clearing Limited (00388) announced that the second phase of lowering the minimum tick size for stocks on the Hong Kong securities market will be launched on August 3, following the successful introduction of the Derivatives Market System and adjustments to the display of the closing prices of the underlying securities in the designated reports, as well as obtaining approval from the relevant regulatory authorities. To prepare for the launch of the second phase, the Exchange will conduct a non-mandatory pre-launch test on August 1 from 9:00 am to 12:10 pm to allow Exchange participants to verify that their systems are ready before the launch of the second phase on the following Monday. The pre-launch test will focus on the changes to the lower tick table for the second phase. The scope of securities covered in the second phase is consistent with the first phase, with a price range of minimum tick sizes between HK$0.5 and HK$10. The minimum tick size will be reduced by 50%, from HK$0.01 to HK$0.005. According to a consultation by the Hong Kong Exchanges and Clearing in June 2024, based on the average turnover from 2021 to 2023, the number of securities affected by the second phase revision is 1345, accounting for about 51% of the 2600 applicable securities, while representing approximately 24% of the average daily turnover of applicable securities.