On July 6, 2021, the Hong Kong Stock Exchange (HKEX) announced the upcoming launch of a groundbreaking platform called FINI (Fast Interface for New Issuance) to fully streamline and digitalize Hong Kong's initial public offering (IPO) process.

FINI can drive efficiency, reduce risk, modernize interactions among stakeholders, and lay the groundwork for further digitization of Hong Kong's capital raising process, bringing benefits to all professional parties in the IPO process. FINI is set to significantly shorten the settlement cycle from five business days (T+5) to two business days (T+2).

FINI will also address the issue of excessive liquidity lock-up in heavily oversubscribed IPOs during the subscription period, by allowing clearing participants to opt in for a compressed prefunding requirement in certain circumstances. Through FINI, brokers, share registrars, IPO sponsors, lawyers, underwriters, distributors and regulators will be able to execute their respective roles via this new digital platform and to coordinate workflows during the listing initiation, subscription, pricing, allotment, payment, regulatory approval and stock admission processes.

To ensure ample time for market readiness prior to the launch of FINI, it is expected that FINI will be rolled out in the fourth quarter of 2022, at the earliest. HKEX will invite market participants to join education sessions, on-boarding, market-wide testing and rehearsals to ensure a smooth transition in due course.