Hong Kong Exchanges and Clearing (0388) is considering longer equity trading hours, including a proposal to end the lunch break, aiming to enhance the city's competitiveness against global rivals' longer hours or even a 24-hour trading session, Bloomberg reported on Monday, citing people familiar with the matter.
One of HKEX's extension plans suggests advancing the stock trading start time by 30 minutes to 9 am and scrapping the one-hour lunch break that begins at 12 pm, the report said.
Hong Kong is one of the few major exchanges that still maintains a lunch break, alongside those in mainland China and Tokyo.
HKEX is also considering adding a post-market trading session to catch the US market's early trading activities, with a proposed time between 8 pm and midnight.
However, the Hong Kong market will keep its closing time at 4 pm to facilitate clearing and settlement.
Moreover, if HKEX processes the potential evening trading session, it will be limited to a few large-scale stocks, which could draw more investors' attention.
HKEX also wants to boost local trading volume of companies that have issued American depository receipts.
The city's bourse operator has told major brokers and trading firms of these extension plans, according to the report.
Besides, HKEX may need to figure out whether 600 eligible stocks for the Southbound Stock Connect will engage in the extended trading hours, the people said.
In a response, the exchange noted that its current focus in the first instance is on the proposed enhancement of derivatives market trading hours, which remains subject to further market engagement and regulatory approval.
HKEX regularly explores various enhancement arrangements, while potential enhancements to cash market trading are at a very early, exploratory stage, it said.
Any future adjustments to the market would require careful assessment of market impacts, stakeholders' feedback and the arrangements of the Connect programme, it added.
The Securities and Futures Commission also said it has had initial talks with the exchange on the potential enhancements to trading hours to assess their impact, and remains dedicated to engaging with all parties involved.
