FINI – a new platform for Hong Kong IPO settlement

Following a huge support from the market, on 6 July 2021, Hong Kong Exchanges and Clearing Limited (HKEX) confirmed to introduce FINI (Fast Interface for New Issuance) – a new digitalised platform for Hong Kong IPO settlement.  HKEX expects to roll out FINI in the fourth quarter of 2022, at the earliest.

The purpose of FINI is to provide a common venue for market participants and regulatory authorities who are involved in the end-to-end Hong Kong IPO settlement process (including the listing initiation, subscription, pricing, allotment, payment, regulatory approval and stock admission processes) to interact with each other. FINI aims to modernise and streamline the settlement process, and shorten the cycle between IPO pricing and commencement of trading.

Currently and for a long time, a typical Hong Kong IPO settlement cycle means “T+5” i.e. an average of five business days are required for new shares to become tradeable in the secondary market after pricing of an IPO.  FINI will be launched with a “T+2” IPO settlement timetable as the initial standard cycle although a “T+3” or longer IPO settlement period may be allowed upon advance request by issuers.  A shorter IPO settlement cycle is believed to be able to reduce market risk exposure and alleviate the impact on liquidity in Hong Kong dollar.

For more details, please refer to FINI Concept Paper Conclusions at here

22 July 2021