The Hong Kong Exchanges and Clearing Limited (HKEX) has taken a significant step forward in modernizing the region’s fund distribution ecosystem with the official launch of its Order Routing Service on the Integrated Fund Platform (IFP). This advancement marks a pivotal moment in streamlining fund transactions and enhancing connectivity among key players in the asset management industry.
The service was unveiled during a launch ceremony on July 3, where HKEX executives, regulators, and industry stakeholders gathered to celebrate the milestone. By digitizing and centralizing order processing for fund subscriptions and redemptions, the IFP aims to improve operational efficiency, reduce manual errors, and strengthen communication across the fund distribution chain.
Enhancing Efficiency in Fund Distribution
At the heart of this innovation is a vision to transform how fund distributors, fund managers, and transfer agents interact. The new Order Routing Service enables seamless electronic transmission of buy and sell orders between these parties, replacing outdated, fragmented processes that have long plagued the industry.
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HKEX Group Chief Executive Officer Bonnie Chan emphasized the strategic importance of this upgrade:
“HKEX is committed to advancing Hong Kong’s fund distribution ecosystem and reinforcing its position as a leading wealth and asset management hub in the region.”
By integrating order routing into the IFP, HKEX is creating a unified infrastructure that supports institutions of all sizes—from global banks to boutique asset managers—fostering collaboration and scalability across the sector.
How the Order Routing Service Works
The service operates on a business-to-business (B2B) model and is being rolled out in phases. It builds upon the existing IFP Fund Data Hub, which already provides standardized, real-time information about retail funds available in Hong Kong. That feature has been widely adopted and praised for improving transparency and data consistency.
Now, with the addition of order routing, participants can:
- Submit subscription and redemption orders electronically
- Receive real-time confirmation and status updates
- Reduce reliance on paper-based or email-driven workflows
- Minimize settlement delays and reconciliation issues
This integration streamlines the entire transaction lifecycle, from order initiation to post-trade processing, making fund investing faster and more reliable for end investors.
33 Leading Firms Join at Launch
The IFP’s Order Routing Service has already attracted strong industry backing. At launch, 33 major financial institutions—including fund distributors, transfer agents, and asset managers—joined the platform as founding participants.
These early adopters represent a cross-section of Hong Kong’s financial landscape, signaling broad confidence in the platform’s potential. As adoption grows, the network effect will further amplify efficiencies across the ecosystem.
Regulatory approval remains a prerequisite for future enhancements. HKEX plans to introduce agent services and expand payment and settlement functionalities in upcoming phases, aiming to create a fully integrated end-to-end solution for fund distribution.
Regulator Endorsement: A Boost for Market Confidence
The Securities and Futures Commission (SFC) welcomed the launch, calling it a key milestone in the evolution of Hong Kong’s capital markets infrastructure.
In a statement, the SFC highlighted that the service will enhance communication among market participants and strengthen collaboration within the retail fund network.
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Christina Mak, Executive Director of Investment Products at the SFC, noted:
“The development of the IFP is part of Hong Kong’s broader capital market digitization strategy—an essential foundation for modern financial systems.”
She pointed to impressive market data: in the first half of 2025, Hong Kong’s stock market achieved an average daily trading value of HK$240 billion, an 118% year-on-year increase, driven by technological advancements and improved market infrastructure.
Mak added that enhanced connectivity through order routing is expected to optimize costs across the fund sales chain and boost Hong Kong’s competitiveness in the global asset management arena.
The SFC affirmed its ongoing commitment to work closely with HKEX and other stakeholders to ensure the full implementation of the IFP.
Shenzhen Collaboration: Building Cross-Border Bridges
A critical technical enabler behind the Order Routing Service is the Financial Data Exchange Platform (FDEP), operated by Shenzhen Securities Communication Co., Ltd.—a subsidiary of the Shenzhen Stock Exchange (SZSE).
FDEP provides secure, high-speed data transmission services and currently supports over 200 financial institutions with reliable, one-stop data exchange solutions.
SZSE representatives emphasized their support for HKEX’s initiative and expressed interest in exploring interoperability between IFP and FDEP ecosystems. Such integration could unlock new possibilities for cross-border wealth management products, including:
- ETF互联互通 (ETF Connect)
- Mutual recognition of funds
- Joint product innovation between mainland and Hong Kong markets
The exchange also signaled its intent to deepen cooperation with HKEX across multiple domains, leveraging synergies between the two markets to create investment opportunities within the Guangdong-Hong Kong-Macao Greater Bay Area.
This collaboration underscores a growing trend toward regional financial integration, supporting national goals for financial openness and high-quality economic development.
Frequently Asked Questions (FAQ)
What is the Integrated Fund Platform (IFP)?
The IFP is a digital infrastructure developed by HKEX to streamline fund distribution in Hong Kong. It includes a centralized fund database and now offers an Order Routing Service for electronic processing of subscriptions and redemptions.
Who can use the Order Routing Service?
The service is designed for B2B use by authorized financial institutions, including fund distributors, transfer agents, and asset managers. Retail investors access the benefits indirectly through their financial advisors or platforms.
How does this improve investor experience?
By reducing processing times, minimizing errors, and increasing transparency, investors enjoy faster execution and greater confidence in fund transactions.
Is the platform open to all market participants?
Yes, the IFP is designed to be inclusive, supporting institutions of all sizes. Participation requires technical integration and regulatory compliance.
What are the next steps for IFP development?
Future phases include introducing agent services and enhancing payment and settlement capabilities. Full end-to-end automation is the ultimate goal.
Will this affect cross-border fund trading?
Yes—especially when combined with initiatives like FDEP integration. These developments lay the groundwork for smoother cross-border wealth management services between Hong Kong and mainland China.
The Road Ahead: Digitization as a Strategic Imperative
The launch of the Order Routing Service is more than a technical upgrade—it’s a strategic move to future-proof Hong Kong’s financial infrastructure. As investor demand for efficient, transparent, and accessible investment products grows, platforms like IFP become essential tools for maintaining competitiveness.
With strong regulatory backing, industry participation, and cross-border collaboration, HKEX is positioning Hong Kong at the forefront of financial digitization in Asia.
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Core keywords naturally integrated throughout:
Hong Kong Exchange, Integrated Fund Platform, Order Routing Service, fund distribution, HKEX, SFC, FDEP, digital infrastructure
As adoption expands and functionality deepens, the IFP could serve as a blueprint for other markets seeking to modernize their fund ecosystems—proving once again that connectivity, innovation, and cooperation are the cornerstones of progress in global finance.