finance
HKEX Proposes Shift to T+1 Settlement Cycle by Late 2027
Hong Kong Exchanges and Clearing has proposed reducing the share settlement cycle from T+2 to T+1 to improve market efficiency. The change would apply to various securities and is set for implementation in the fourth quarter of 2027. A four-week consultation period began on April 17, 2026.
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Hong Kong Exchanges and Clearing (HKEX) announced a proposal to shorten the cash settlement cycle for share trading from two days to one day. The bourse operator released a consultation paper on April 17, 2026, targeting implementation of the T+1 system in the fourth quarter of 2027. This would replace the current T+2 cycle.
The proposed T+1 system would cover equities, exchange-traded products, structured products, real estate investment trusts, and listed debt securities, according to HKEX. It would also include the physical settlement of equities from exercised stock options.
stated that the move aims to enhance market efficiency and liquidity.
The proposal follows a mention by the financial secretary in a February 2026 budget speech and an initial idea floated by HKEX in July 2025. >"Moving to T+1 is a key step forward as we further elevate the competitiveness of Hong Kong’s markets – making transactions safer, faster, and more robust, while laying the foundation for more infrastructure enhancements and innovations," HKEX CEO Bonnie Chan Yiting said.
5 trillion, with practices in other regions.
The US and Canada adopted T+1 in May 2024, while the United Kingdom and Europe are considering similar changes. Mainland China has operated under T+1 for an extended period.
The consultation period runs for four weeks, ending on May 18, 2026.
HKEX invited industry feedback to prepare for the transition.
