The Hong Kong Securities and Exchange Commission (SFC) has today published conclusions of consultations on the proposed increases in the limits for those who are negotiating in exchanges based on the three large shares in Hong Kong.
According to the proposal, the position limits for the future fulfillment and options of the Hang Seng index, the Hang Seng China Enterprises and Hang Seng Tech Index will increase by 50%, 108% and 43% respectively to 15,000, 25,000 and 30,000 seats.
Respondents in the consultation that ended on March 28, 2025, showed strong support for the proposal, noting that changes would facilitate market liquidity, compensation efficiency and further market growth. The SFC received a total of 25 submissions from both local and market participants abroad, including market manufacturers, asset managers, industry associations and other stakeholders.
The SFC will now proceed with the implementation of the proposal after examining the feedback, historical and potential market development, as well as the use of boundaries by market participants. To this end, it will modify the rules of the securities and future contracts (limits of contracts and positions that can be reported), as well as the guidance note on position limits and large opening requirements.
Subject to the legislative process, the new position limits are expected to enter into force in July 2025.