Hong Kong Exchanges and Clearing (0388) announced proposed enhancements to the board lot framework on Tuesday, including standardisation of board lot units to a defined set of eight options and reduction of the board lot value floor guidance to HK$1,000.
The eight options consist of 1, 50, 100, 500, 1,000, 2,000, 5,000 and 10,000 share(s).
It also plans to introduce board lot value ceiling guidance at HK$50,000 for issuers that adopt board lot units larger than 100 shares.
HKEX said that the new board lot framework will be implemented in phases, starting July 2.
Upon the launch of the Uncertificated Securities Market on November 16, HKEX's second-phase plan will require all issuers to adopt one of the standardised board lot units within six months of completing the Uncertificated Securities Market transition process.
The requirement to conduct parallel trading for a change of board lot unit will be removed for issuers that have completed the USM transition process, it added.
Besides, HKEX noted that it also plans to enhance the odd lot trading mechanism, with the exploration of a new automatic matching mechanism considered to be launched earliest by the third quarter of 2027, subject to regulatory approval and market readiness.
