HKEX pushes ahead on extended trading hours discussions as it prepares paper: sources

Hong Kong Exchanges and Clearing (HKEX) intends to release a discussion paper on extending stock market trading hours, as reported by two sources familiar with the matter. The paper could potentially mark the first revision to the city's market opening time in 14 years. The bourse operator plans to initiate the discussion following the varied response to the proposed alteration, according to the sources.

The paper would present the advantages and disadvantages of extended hours, inviting public discourse, but will not include precise proposals for new opening times, stated one source. If the discussion paper garners favorable feedback, HKEX would subsequently issue a public consultation paper proposing new trading hours for the cash market, said the source, who requested anonymity due to the sensitivity of the issue.

Currently, HKEX permits trading from 9:30am to 4:00pm on weekdays, including a one-hour lunch break. The extension of trading hours may entail the bourse opening earlier or closing later, as confirmed by the source. The cancellation of the lunch break is not being actively discussed. In July, HKEX and the Securities and Futures Commission informed the South China Morning Post about their exploration of a trading hour extension, but did not provide specifics.

This development follows the announcements by Nasdaq and the London Stock Exchange regarding their plans to extend trading hours later in the year.

The discussion of extended trading hours has prompted concerns among brokers in Hong Kong regarding high costs and increased workloads for the city's over 500 stock brokerage firms. Robert Lee Wai-wang, a lawmaker for the financial services sector and chairman of Grand Finance Group, emphasized the need for careful examination of the impact and feasibility of any change on the industry.

He cautioned against hastily implementing such a change without thorough consultation with key stakeholders to safeguard the city's competitiveness.

Any modification to trading hours is expected to be implemented in stages, as it would impact a multitude of market participants, including banks, listed companies, and investors. HKEX must also determine the arrangement of Stock Connect schemes with mainland markets. A HKEX spokesperson stated that the bourse would provide further updates in due course, emphasizing the exchange's commitment to enhancing Hong Kong's competitiveness as an international financial center and regularly reviewing opportunities to improve market accessibility to cater to evolving investor demand.