Hong Kong Education and Culture Centre

A Blockchain start-up financial technology company, Digital Asset Holdings has cooperated with the Australian Stock Exchange and the Hong Kong Stock Exchange (HKEX) to launch a post-trade settlement system. Chris Church, the Director of Digital Asset Business Development, has indicated a while ago at the Asia Financial Forum that the cost of traditional way of record maintenance and compliance is very high.  

Resulting from the operation of blockchain system, both transaction parties take the ledger as a mutual consent in order to reduce the costs. Taking the experience of the Australian exchange as an example, having an aerial view of the regulatory power in blockchain is certainly more reassuring for the exchange platform while altering the major system.

Recently, the HKEX has announced that in order to prevent possible confusion due to different practices between international and Mainland Chinese investors; for instance, Mainland Chinese investors are accustomed to T+0 settlement while Hong Kong investors’ settlement date is T+2. They intended to adopt the blockchain trading and clearing system into the stock connect between the Hong Kong, Shanghai and Shenzhen Stock Exchanges. In terms of having a better settlement system for international counterparty of A-shares, a new system has now been examining in the industry which brings an ideal and positive responsiveness of market demand.