It is rumored that the Hong Kong Stock Exchange (00388) plans to reduce the minimum trading unit for stocks

The Zhitong Finance App learned that according to media reports, the Hong Kong Stock Exchange (00388) is discussing lowering the threshold for investors to buy some of Hong Kong's most expensive stocks to stimulate trading. The report said that during discussions and exchanges between the Hong Kong Stock Exchange and brokerage firms in recent weeks, exchange officials proposed options for streamlining the minimum trading unit or transaction lot for each stock.

Currently, the minimum trading unit for shares is set by each company, and the range ranges from 100 shares to thousands of shares. The minimum share trading unit for other markets, including mainland China, is usually 100 shares, and in some cases the minimum is 1 share.

The report also said that the Hong Kong Stock Exchange has yet to indicate the priority direction, policy formulation is still ongoing, and the schedule and scope are not clear.

Although investors in Hong Kong can buy a portion of the share capital, the cost is higher than the entire share due to infrastructure issues. The report pointed out that officials also discussed the issue of making the exchange set the transaction price for a single share the same as the price of a stock trading unit to increase the liquidity of public shareholders. This will avoid large-scale market adjustments to derivative products and settlement systems that are consistent with transaction volumes.

A spokesperson for the Hong Kong Stock Exchange said in a statement that the agency is in the preliminary stages of evaluating the number of transactions per lot. This is part of the Hong Kong Stock Exchange's ongoing efforts to improve the Hong Kong stock market structure to ensure that it fits; the Hong Kong Stock Exchange will consider the advantages of various solutions and consult the market before implementing any adjustments.