The second phase of the reduction in the minimum tick size for Hong Kong-listed stocks is scheduled for launch on August 3rd.

This follows the successful implementation of adjustments to the derivatives market system and the display of relevant underlying stock closing prices in designated reports, and the move has received the necessary regulatory approvals.

To prepare for the second phase launch, the exchange will conduct a non-mandatory pre-launch test on August 1st from 9:00 AM to 12:10 PM.

This test is designed to allow exchange participants to verify their systems are ready ahead of the official launch on the following Monday.

The focus of this test will be on the changes to the price table under the second phase.

The scope of securities covered in the second phase remains consistent with the first phase.

For securities priced between HK$0.5 and HK$10, the minimum tick size will be reduced by 50%, moving from HK$0.01 to HK$0.005.

According to a consultation conducted in June 2024, based on average trading volumes from 2021 to 2023, the second phase revision will affect 1,345 securities.

This represents approximately 51% of the 2,600 applicable securities and accounts for about 24% of the average daily turnover for the applicable securities.