HKEX reportedly preparing to launch new IPO platform

The new platform, called ‘FiNI’, will simplify its IPO process and improve efficiency

HKEX (Hong Kong Exchanges and Clearing) is reportedly preparing to launch a new platform to simplify its IPO process and improve efficiency.

The new platform, called ‘FiNI’, will deal with share issuance and settlement matters, aiming to streamline current IPO processes and shorten the time between IPO pricing and the listing of new shares.

Market participants have complained that Hong Kong’s current IPO settlement of five trading days leaves them exposed to market falls between pricing and trading of shares, making it harder for the city to compete with other developed markets. It is because markets in the US and Europe enable trading within one day of the close of subscription.

HKEX is said to have applied for the ‘FiNI’ trademark in June, though a timetable for the new platform’s launch is not yet available.

We are looking at ways to shorten the current IPO settlement process, a HKEX spokesperson told Regulation Asia in an email reply. This is part of our ongoing commitment to enhance the competitiveness and attractiveness of our IPO market.

We will look to update the market on our proposals in due course. Stay tuned, the HKEX spokesperson said.

HKEX has previously said it plans to shorten the settlement period for IPOs to a single day by end-2020, and that the use of paper forms by retail investors has long been a barrier to faster IPO settlements.

In July, The stock exchange published a consultation paper proposing to introduce a paperless listing and subscription regime. The consultation closes on Thursday (24 September).