The second phase of the Hong Kong Stock Exchange (00388) lowering the minimum stock price will be launched on August 3

The Zhitong Finance App learned that the Hong Kong Stock Exchange (00388) announced that the second phase of lowering the minimum stock price in the Hong Kong stock market will be launched on August 3 with the smooth introduction of the derivatives market system and adjustments in the closing price display method for relevant underlying stocks in designated reports, and approval from relevant regulators.

According to the Hong Kong Stock Exchange, in preparation for the second phase of the launch, the exchange will arrange an optional pre-launch test from 9:00 a.m. to 12:10 p.m. on August 1, so that exchange participants can verify that the system is ready before the second phase is launched on Monday. This pre-launch test will focus on changes in the price list under Phase II.

The scope of applicable securities covered by the second phase is the same as in the first phase. The lowest price range between HK$0.5 and HK$10 will be reduced by 50%, that is, from HK$0.01 to HK$0.005.

According to the Hong Kong Stock Exchange's consultation in June 2024, based on the average turnover from 2021 to 2023, the number of securities affected by the second phase revision was 1,345, accounting for about 51% of the 2,600 applicable securities, and about 24% of the average daily turnover of applicable securities.