The Hong Kong Exchanges and Clearing Limited (HKEX) announced Friday that it would enhance the securities market stock settlement fee structure to boost market efficiency.

The improved rules removed the current minimum and maximum fee components, and adjusted the ad valorem rate to 0.42 bps for each trade. The new fee structure is expected to take effect in June this year.

Based on HKEX data, about 77 percent of all securities trades conducted between 2019 and 2024 would benefit from lower fees under the new structure.

HKEX Chief Operating Officer Vanessa Lau said that the change was part of the company's ongoing initiatives to elevate the breadth and depth of the securities market, reinforcing Hong Kong's position as a premier financial center.

Hong Kong's stock market saw widespread gains on Friday, with the benchmark Hang Seng Index surging some 4 percent to hit a new high in almost three years.