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The Hong Kong stock exchange is reportedly reviewing plans to extend its trading hours.
According to foreign media including the South China Morning Post today (July 23), the Hong Kong Exchanges and Clearing (HKEX) and the Securities and Futures Commission (SFC) are considering expanding trading hours to boost Hong Kong's competitiveness as an international financial center and align with moves by major global exchanges.
However, the HKEX explained that the extension of derivatives market trading hours is currently the primary focus, while discussions regarding changes to cash market trading hours are still in the early stages.
Two sources familiar with the matter told the South China Morning Post that proposals to extend the market closing time to 5:00 PM or 8:00 PM are under consideration.
While it was reported that abolishing the one-hour lunch break was also being reviewed, the sources said this option is not currently being actively considered.
Other proposals reportedly under review include moving the market opening time forward by 30 minutes to 9:00 AM, or introducing a night trading session that overlaps with the early trading hours of the U.S. stock market.
Currently, trading hours for the HKEX run from 9:30 AM to 4:00 PM.
Meanwhile, the local securities industry and other market participants have raised questions over whether the increase in trading volume would be enough to offset longer working hours.
David Wong, honorary president of the Institute of Securities Dealers in Hong Kong, pointed out that "too much manpower and resources are required compared to the expected benefits."
Some also argue that lowering trading costs or expanding the range of derivative products would be more effective in boosting trading volume than extending trading hours.
Back in 2011, when a plan was pursued to shorten Hong Kong's lunch break from two hours to one hour, about 1,000 people, including stock brokers and restaurant workers, took to the streets to protest.
Despite this, the HKEX eventually shortened the lunch break in two phases.
Efforts to secure higher trading volumes by extending trading hours are emerging in various parts of the world recently.
The Korea Exchange has been pushing to extend daily trading hours to 12 hours by establishing pre-market and after-market sessions.
However, while the after-market is slated to open first this coming September, the launch of the pre-market starting at 7:00 AM has been postponed to late 2027.
The London Stock Exchange (LSE) has announced plans to launch a night trading venue starting in the first half of next year to enable nearly 24-hour continuous trading.
The Taiwan Stock Exchange has also reportedly discussed plans with securities firms to extend regular trading hours, which currently run from 9:00 AM to 1:30 PM.
(Photo: Yonhap News)
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