The Hong Kong Exchanges and Clearing (HKEX) will implement the second phase of reducing the minimum tick size in mid-year

Hong Kong Exchanges and Clearing (HKEX) (00388.HK) announced plans to implement the second phase of measures to reduce the minimum price fluctuation for securities trading in mid-year. Since the first phase was implemented in August last year, the exchange has completed a mid-term review, showing no adverse impact on the relevant stocks.

The second phase applies to stocks priced between HKD 0.5 and HKD 10, with the minimum price fluctuation reduced from HKD 0.01 to HKD 0.005, a decrease of 50%. The exchange will arrange testing and market exercises within the year to ensure the smooth implementation of the reforms.

HKEX Chief Operating Officer Liu Bi-yin stated that the first phase of reforms has significantly narrowed the bid-ask spread, reduced trading costs, and enhanced liquidity. The second phase will further optimize market efficiency and align with the promotion of a paperless securities market and trading unit reforms, consolidating Hong Kong's position as an international financial center