HKSI Paper 1 Participating in the Hong Kong exchanges question: Ip enters a limit order during continuous trading to buy an SEHK-listed ordinary share

HKSI Paper 1Participating in the Hong Kong exchanges

In October 2026, Mr Ip enters a limit order during continuous trading to buy an SEHK-listed ordinary share at HK$18.35. The share last traded at HK$18.30. How is the price of his order treated?

A Rejected, as the HK$10-20 band still trades in HK$0.02 steps
B Rejected, as the HK$10-20 band trades in HK$0.05 steps
C Accepted, as minimum spreads apply only to auction orders, not limit orders
D Accepted as entered, as the HK$10-20 band now trades in HK$0.01 steps

Show the answer and explanation

Answer: D. Accepted as entered, as the HK$10-20 band now trades in HK$0.01 steps

Phase 1 of HKEX's reduction of minimum spreads took effect on 4 August 2025. For Applicable Securities priced from HK$10 to HK$20 the minimum spread fell from HK$0.02 to HK$0.01, and from HK$20 to HK$50 it fell from HK$0.05 to HK$0.02. An ordinary share is an Applicable Security, so HK$18.35 is a valid price and the order stands as entered. HK$0.02 is the pre-August 2025 spread for this band; HK$0.05 is the old spread for the HK$20-50 band; and the spread table governs the price of every order, including limit orders in continuous trading. Source: HKEX 'Reduction of Minimum Spreads' page; SEHK circular CT/003/26 (9 January 2026) (as at October 2026). Source: HKEX 'Reduction of Minimum Spreads' page (hkex.com.hk, viewed October 2026); SEHK circular CT/003/26 (9 January 2026) (as at October 2026).

Common mistake

Candidates still use the old HK$0.02 spread for shares priced between HK$10 and HK$20. It has been HK$0.01 since 4 August 2025.

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Original study material mapped to the public HKSI Paper 1 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.