Hong Kong considers faster stock trade settlements

Hong Kong Exchanges and Clearing (HKEX) is exploring shortening stock trading settlement times, a move that has garnered support from fund managers and stockbrokers. The plan aims to align HKEX with international exchanges, reduce risks, and boost liquidity, following the US and Canada's shift to a T+1 settlement cycle. The current T+2 cycle requires payment within two days of a trade. HKEX's CEO and Hong Kong's Financial Secretary announced the exploration in February, citing the need to keep pace with global trends, particularly China's existing T+1 system.