Hong Kong publicly traded companies choose their own board lots, which has resulted in more than 40 different sizes, according to an HKEX tally. About 25% of listed issuers will need to adjust their board lot sizes under the proposal, the exchange said. The public has until March 12 to give comments.
“These proposals aim to make trading simpler and more accessible to all, while also catering to the needs and distinctive features of Hong Kong’s financial markets,” said Gregory Yu, head of markets at HKEX, in a statement. The changes “will be the first step of a longer-term journey to transition to a single unified board lot unit,” he said.
The review is part of a wider push to boost trading liquidity in the Hong Kong stock market. This year, more than US$34 billion in shares debuted in the city as global investors revived interest in China. However, a higher threshold of trading Hong Kong stocks still deters some investors.
See also: Hong Kong economy grows most since 2021 as trade and IPOs surge
For example, the minimum order of Chinese technology giant Alibaba Group Holding Ltd is 100 shares in Hong Kong. Investors can buy one single share of the same company in New York using widespread online brokerage apps.
Chinese automaker BYD Co slashed its board lot to 100 shares from 500 starting from Sept 19, to improve liquidity and broaden the shareholder base, the firm said.
Uploaded by Liza Shireen Koshy
