The Hong Kong stock exchange plans to revamp the settlement process for initial public offerings (IPOs) to reduce the time between pricing and trading debut to one business day from five in an effort to attract more listings, reported Caixin.
The change, proposed in a consultation paper published Monday by Hong Kong Exchanges and Clearing (HKEX), will overhaul the two decade-old IPO settlement regime applied in the city’s bourse and make it among the most competitive in the world, HKEX said.
Under the proposal, HKEX will introduce a new web-based service called FINI, for Fast Interface for New Issuance. It will enable IPO market participants, advisers and regulators to interact digitally and seamlessly on the many steps in the IPO settlement process.
“FINI will secure our continued attractiveness and competitiveness as the global listing market of choice, and we look forward to working with the Hong Kong IPO community on this exciting initiative,” said HKEX Chief Executive Charles Li in a statement.