SFC: HKEX daily turnover tops HK$270 billion on liquidity measures
SFC CEO Dora Liang says Hong Kong stock market daily turnover exceeded HK$270 billion this year, up about 160 per cent from 2023, reflecting effective liquidity-boosting measures. The city is advancing reforms including a T+1 settlement cycle and narrower trading spreads.
The Securities and Futures Commission (SFC) chief executive, Dora Liang, said Hong Kong's average daily stock market turnover has exceeded HK$270 billion so far this year, up about 160 per cent from 2023, reflecting the effectiveness of measures to boost market liquidity.
Speaking at a forum organised by the Asia Securities Industry and Financial Markets Association, Liang said that as of August this year, Chinese government bonds and policy bank bonds accounted for about 18 per cent of the total collateral held by the over-the-counter clearing company.
She noted that since the introduction of measures to narrow bid-ask spreads in Hong Kong stocks, the spread for the first phase, covering 300 stocks, had narrowed by 38 per cent, while trading time had been reduced by 26 per cent. The second phase, launched in August this year, narrowed spreads by about 30 per cent.
Liang said more measures were being rolled out, including shortening the settlement cycle to T+1, with the Hong Kong Exchanges and Clearing Limited (HKEX) set to publish a consultation summary and target implementation date shortly.
She also highlighted that the average daily turnover of exchange-traded products (ETPs) in Hong Kong had surged 3.6 times over the past three years, accounting for nearly one-fifth of mainboard turnover and making the city the third-largest ETP market in Asia.
The number of eligible Hong Kong ETFs included in the cross-boundary connectivity schemes had increased to 31, with southbound capital becoming a strong growth engine, Liang said. She added that with mainland insurance funds now permitted to invest in Hong Kong ETFs through the Stock Connect schemes, market growth momentum was expected to continue.