HKEX Successfully Launches Second Phase Of Closing Auction Session For Its Securities Market

Hong Kong Exchanges and Clearing Limited (HKEX) today (Monday) successfully introduced Phase 2 of the Closing Auction Session (CAS) in its securities market.

A two-phase approach was taken to ensure a smooth transition for investors and other market participants.

CAS Phase 1, covering all constituents of the Hang Seng Composite LargeCap and MidCap indices, H shares which have corresponding A shares listed on a Mainland exchange and all Exchange Traded Funds, or ETFs, (together CAS Securities), was successfully launched on 25 July 2016.

With the implementation of CAS Phase 2 (Phase 2), the list of CAS Securities was expanded to include constituents of the Hang Seng Composite SmallCap Index to further meet institutional investors' need for execution at close.  Phase 2 also includes regulated short selling, with regulated short-selling orders allowed to be placed during the CAS at a price not lower than the CAS Reference Price.

Key Statistics from Today's CAS

CAS turnover: $3.9 billion
Today's total turnover: $79.6 billion
CAS short selling turnover as a percentage of today's short-selling turnover: 3.5 per cent

Further details of the CAS are available on the HKEX website at the VCM and CAS web corner and microsite.