Consultation on Modernising Hong Kong’s IPO Settlement Process

The Hong Kong Exchanges and Clearing Limited (“HKEX”) issued a concept paper on 16 November 2020 seeking market feedback on its proposal to comprehensively modernise and digitalise Hong Kong’s IPO settlement process (“Concept Paper”) through the introduction of a new web-based service called “FINI” (Fast Interface for New Issuance). FINI is aimed to enable IPO market participants, advisers and regulators to interact digitally and seamlessly on the steps that comprise the end-to-end IPO settlement process. According to HKEX, the introduction of FINI will, among other things, shorten the time gap between IPO pricing and trading from its current average of more than five business days to as little as one business day, meaning that the settlement time frame can be reduced by as much as 80%.

The Law Society in general supports the above proposal, and made a submission in response to the Concept Paper. Members who are interested may refer to the link below on the Law Society’s website for the submission.