Hong Kong Exchanges and Clearing Limited (HKEX) has confirmed 22 November 2023 as the go-live date for its new digitalised IPO settlement platform, Fast Interface for New Issuance (FINI).
Listings with a prospectus published on or after 22 November will be processed using the new system, with relevant FINI-related listing rules, Hong Kong Securities Clearing Company Limited (HKSCC) rules and HKSCC operational procedure going live alongside the new platform.
FINI will replace the existing IPO settlement platform, which uses the central clearing and settlement system (CCASS), and will shorten the time between the pricing of an IPO and the trading of shares from T+5 to T+2. This will improvise efficiency and support Hong Kong’s long-term development as a capital raising centre, the exchange says.
Various stakeholders will be able to perform their roles in an IPO digitally on the cloud-based platform, and a public offer pre-funding model is being implemented to reduce the scale of locked-up funds in oversubscribed IPOs.
To prepare for the FINI transition, HKEX has run testing, market practice sessions and rehearsals with Hong Kong IPO market participants.
Nicolas Aguzin, HKEX CEO, comments: “FINI is a major development for Hong Kong’s capital markets, bringing greater efficiency and convenience to market participants and issuers, helping them to better manage their risks and costs.
“The new platform also underpins HKEX’s steadfast commitment to further enhancing the competitiveness and attractiveness of our markets, modernising Hong Kong’s market infrastructure and promoting collaboration.”
