HKEX launches second phase of closing auction session for its securities market


Hong Kong Exchanges and Clearing Limited (HKEX) just announced that has 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

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