Hong Kong SFC: Informal Notice Sent to Mainland on Extending Trading Hours; Abolishing Lunch Break Most Discussed
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The Hong Kong Securities and Futures Commission (SFC) has informally notified mainland Chinese authorities about a potential extension of stock market trading hours, as part of a five-year strategic plan to align Hong Kong with global markets. SFC Executive Director of Market Supervision, Liang Zhongxian, stated that mainland authorities are aware of the discussions and generally respect Hong Kong's market autonomy, without expressing major objections. The SFC is studying plans that balance market development with minimizing impact on mainland China. Among various options, canceling the midday trading break has received the most attention from local brokers, and will be the focus of a forthcoming consultation paper. Liang noted that if mainland China is not ready, it would be difficult to proceed, as Southbound Stock Connect trades now account for over 20% of Hong Kong market turnover. Separately, the Hong Kong Stock Exchange will provide a timeline for shortening the settlement cycle to T+1 in a consultation summary later this year. Market speculation includes starting trading 30 minutes earlier at 9:00 AM and adding an evening session from 8:00 PM to midnight to capture US market activity.
Source report
Hong Kong, September 25 — The Securities and Futures Commission (SFC) of Hong Kong has included the extension of trading hours as a medium-to-long-term objective in its first five-year strategic action plan, as part of broader efforts to further align the Hong Kong market with major global markets.
Leung Chung-yin, Executive Director of the SFC's Market Surveillance Division, stated that Hong Kong has informally notified Mainland China of the potential extension of stock market trading hours. According to Leung, Mainland authorities are aware of the ongoing discussions in Hong Kong and have generally respected the market's autonomy, without expressing significant objections.
At the same time, Hong Kong is studying proposals that would benefit market development while minimizing potential impacts on the Mainland.
Currently, southbound trading under the Stock Connect program accounts for more than 20% of total turnover in the Hong Kong market. Leung noted, "If the Mainland is not ready, it will be difficult for us to proceed." The Hong Kong Exchanges and Clearing Limited (HKEX) has previously consulted brokers on various proposals and their respective pros and cons, but no specific plan has been finalized.
Leung pointed out that the option to abolish the midday trading break has attracted the most attention. As a result, the upcoming consultation paper will focus on the direction that is most widely accepted by the local industry.
Regarding the shortening of the settlement cycle to T+1, HKEX will "provide a timeline" when it releases its consultation summary later this year. Leung added that the document will also detail challenges related to ETF subscription and redemption, stock lending, and other relevant arrangements. He emphasized that there is no need to rush, and that it is more important to give the market sufficient time to prepare.
Earlier market reports suggested that one proposal under consideration involves HKEX advancing the start of stock trading by 30 minutes to 9:00 AM, while abolishing the one-hour lunch break starting at 12:00 PM. Additionally, HKEX is considering introducing an evening trading session (post-market trading) to capture early trading activity in the U.S. market, potentially running from 8:00 PM to midnight.
Source
格隆汇Eastern
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Hong Kong SFC Notifies Mainland on Extending Trading Hours, Lunch Break Cancellation Top Option