Closing auction will curb abuse, says HKEx chief

Hong Kong

HONG Kong Exchanges & Clearing Ltd (HKEx) chief executive officer Charles Li said the proposed reintroduction of daily closing auctions for equities will mitigate market manipulation and make trading smoother for institutions.

The planned system, which seeks a single price to maximise the number of buy and sell orders matched at the end of each session, would apply to a limited number of heavily-traded stocks and impose an order entry band of 5 per cent during the auction. The bourse will publish results fr…