HKEX Hosts 18 Exchanges, Pushes Ahead With T+1 Consultation
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Hong Kong Exchanges and Clearing Limited (HKEX) has used April 2026 to advance two strategic priorities. It hosted the 40th Asian and Oceanian Stock Exchanges Federation (AOSEF) General Assembly, bringing together 18 regional exchanges to deepen cross-border cooperation. Separately, it launched a market consultation on shortening the cash market settlement cycle from T+2 to T+1 — a move that would align Hong Kong with the US, India and other major markets.
Note: The T+1 consultation closes on 18 May 2026. Implementation is targeted for Q4 2027, subject to market readiness and regulatory approval.
1. AOSEF Assembly: Closer Regional Ties
More than 100 senior exchange leaders attended the three-day AOSEF meeting in Hong Kong. Hong Kong Financial Secretary Paul Chan delivered the keynote, with HKEX Chairman Carlson Tong and CEO Bonnie Y Chan giving welcome remarks.
What HKEX leaders said
| Speaker | Key message |
|---|---|
| Carlson Tong | “With global capital pivoting to Asia, exchanges have a unique opportunity to strengthen cross-market connectivity and build liquidity within Asia.” |
| Bonnie Y Chan | “Leveraging Hong Kong’s role as a superconnector with Mainland China, we can bring Asian and Chinese markets closer together. AOSEF is a unique platform to build a more connected, scalable, future-ready market ecosystem.” |
Recent connectivity wins
| Initiative | Partner |
|---|---|
| MOU | Bursa Malaysia |
| Two co-branded indices | Bursa Malaysia & Korea Exchange (KRX) |
| Five ETF licensing agreements | Based on those indices |
Regional capital flows
Intra‑Asian investment reached ~US$1.7 trillion in 2024, triple the level a decade ago.
Global investor interest in Asia hit a multi‑year high in early 2025.
Next host: The 2027 AOSEF Assembly will be hosted by the National Equities Exchange and Quotations (NEEQ) in Beijing.
2. T+1 Consultation: Moving to a Faster Settlement
On 17 April 2026, HKEX published a consultation paper proposing to shorten Hong Kong’s cash market settlement cycle to T+1 from the current T+2. A July 2025 discussion paper had already drawn broad market support for the move.
Proposed T+1 model – key features
| Feature | Detail |
|---|---|
| Scope | Secondary market trades: equities, ETFs, structured products, debt securities, and stock option physical settlement |
| Excluded | IPOs and Stock Connect Northbound trading (unchanged) |
| DVP & batch settlement | Remain unchanged |
| Timeline | Post‑trade activities on T completed earlier to prepare for T+1 settlement |
| Service windows | Extended for settlement instruction input and matching |
| Risk management | Existing framework applies, with timelines adjusted |
| Efficiency tool | HKEX may develop a tool for institutional stakeholders under T+1 |
Implementation target
Q4 2027, subject to market readiness and regulatory approval.
HKEX will issue technical specifications in due course. Market participants are encouraged to start reviewing:
Securities borrowing and lending
Funding and foreign exchange arrangements
Operational readiness (systems and processes)
Bonnie Y Chan on T+1
“Moving to T+1 makes transactions safer, faster and more robust, while laying the foundation for further infrastructure innovation. We invite the industry to share feedback and start preparing for this important transition.”
3. Why These Two Initiatives Go Together
| Initiative | What it does | Why it matters |
|---|---|---|
| AOSEF cooperation | Builds cross‑border products (indices, ETFs, listings) | Deepens regional liquidity and investor access |
| T+1 settlement | Shortens post‑trade cycle | Reduces counterparty risk, accelerates capital rotation, aligns with global standards |
HKEX is simultaneously upgrading its infrastructure (T+1) and expanding its network (AOSEF partnerships). The two reinforce each other: faster settlement makes cross‑border products more efficient and attractive.
*This article is based on HKEX public announcements from 17 and 22 April 2026. The T+1 proposals are subject to consultation and may change.*
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