Bonnie Chan: Using AI to Assist in New Listing Approvals; 24-Hour Trading for Hong Kong Stocks Requires Careful Consideration

HKEX (00388) CEO Bonnie Chan said on a radio program that a large number of new listings are currently queuing up to list in Hong Kong, but she stressed that the exchange will not compromise on the quality of listed companies. To cope with the workload brought by the large number of new listings, the exchange will not only recruit staff but also use technology to improve efficiency. For example, the listing division will use AI to screen whether newly listed companies meet all disclosure requirements. She said that the Stock Exchange and the Securities and Futures Commission have pledged that, as long as listing applicants' information is ready, they will strive to complete the review within 40 business days and after two rounds of regulatory comments. Some companies already listed in A-shares can even have this compressed to 30 business days and one round of regulatory comments. She pointed out that the service commitment can basically be met. Last year, Hong Kong's new listing fundraising amount returned to first place globally, which also reflects that the measures have been effective. In the future, it will find ways to improve work efficiency and provide a good user experience for companies interested in listing in Hong Kong. Regarding the proposal to shorten the settlement cycle of the Hong Kong stock cash market from T+2 to T+1, Bonnie Chan said that after a very thorough market consultation, an internal review concluded that Hong Kong is capable of doing so, but it must ensure that all market stakeholders can cooperate. She mentioned that when announcing the consultation conclusions, the market will be informed of the supporting measures that can be provided to help the industry adapt. Bonnie Chan described shortening the stock settlement cycle as a global trend, but it is also necessary to consider the turnover needs of investors who borrow stocks, as well as the foreign exchange needs of overseas investors. She hopes that when implementing the measures, more supporting arrangements will be provided to help the market complete each trading step within a short period of time. When asked whether Hong Kong stocks can promote 24-hour trading, Bonnie Chan pointed out that the trading system needs a time window for updates and maintenance, and the exchange must consider this thoroughly to ensure that operations do not go wrong. She believes that the cash market and the derivatives market can be handled differently. For example, the derivatives market is in a position to extend its closing time from 3 a.m. to 4 a.m. to 5 a.m., covering U.S. stock trading hours; for the cash market, it is necessary to analyze the possible impact on different types of market participants, such as retail investors and mainland investors participating in Stock Connect.