Chen Yiting: Using AI to assist in IPO approvals; 24-hour trading in Hong Kong stocks requires careful consideration.

HKEX Chief Executive Officer Chan Yiting said on a radio program that there is currently a large number of new stocks queuing up to list in Hong Kong, but she stressed that the exchange will not compromise on the quality of listed companies. To cope with the workload brought by the large number of new listings, the exchange will not only recruit staff but also use technology to improve efficiency. For example, the listing division will use AI to screen whether newly listed companies meet all disclosure requirements. She said that the Stock Exchange and the Securities and Futures Commission have committed that, as long as listing applicants' information is ready, they will strive to complete the review within 40 working days and after two rounds of regulatory comments, and some companies already listed in A-shares can even have this compressed to 30 working days and one round of regulatory comments. She pointed out that the service commitment can basically be met. Last year, Hong Kong's new stock fundraising amount returned to first place globally, which also reflects that the measures have been effective. In the future, it will find ways to improve work efficiency and provide a good user experience for companies intending to list in Hong Kong. Regarding the proposal to shorten the settlement cycle of the Hong Kong stock cash market from T+2 to T+1, Chan Yiting said that after a very thorough market consultation, an internal review concluded that Hong Kong is capable of doing so, but it is necessary to ensure that all market stakeholders can cooperate. She mentioned that when the consultation conclusions are announced, the market will be informed of the supporting arrangements that can be provided to help the industry adapt. When asked whether Hong Kong stocks can promote 24-hour trading, Chan Yiting said that the trading system needs a time window for updates and maintenance, and the exchange must consider this thoroughly to ensure that operations do not go wrong. She believes that the cash market and the derivatives market can be handled differently. For example, the derivatives market has the conditions to extend the closing time from 3 a.m. to 4 a.m. to 5 a.m., covering U.S. stock trading hours; the cash market, however, needs to analyze the possible impact on different types of market participants, such as retail investors and mainland investors participating in Stock Connect.