Hong Kong SFC: Informal Contact with Mainland on Possible Extension of Trading Hours, Lunch Break Abolition Most Discussed
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Hong Kong Securities and Futures Commission (SFC) Executive Director Liang Zhongxian stated that Hong Kong has informally notified mainland China about potentially extending stock market trading hours. He noted that mainland authorities are aware of the discussions and generally respect Hong Kong's market autonomy, without expressing major objections. Hong Kong is studying plans that benefit market development while minimizing impact on the mainland. Liang highlighted that southbound trading under the Stock Connect program accounts for over 20% of Hong Kong market turnover, making mainland readiness a key factor. The option to cancel the midday trading break has received the most attention, and a forthcoming consultation paper will focus on the direction most accepted by local industry. Regarding shortening the settlement cycle to T+1, the Hong Kong Exchange (HKEX) will provide a timeline in a consultation summary within the year. The paper will also address challenges related to ETF subscription and redemption, stock lending, and other arrangements. Liang emphasized the need to give the market sufficient preparation time rather than rushing changes.
Source report
Hong Kong has informally notified Mainland China about a possible extension of stock market trading hours, according to Eddie Leung, Executive Director of the Securities and Futures Commission (SFC) of Hong Kong.
Leung stated that Mainland authorities are aware of Hong Kong's ongoing discussions and have largely respected the market's autonomy, without raising significant objections. Meanwhile, Hong Kong is exploring options that would benefit market development while minimizing potential impacts on the Mainland.
Key Points
- Southbound Stock Connect accounts for over 20% of total turnover in the Hong Kong market. Leung noted, "If the Mainland is not ready, it will be difficult for us to move forward."
- Lunch break abolition has drawn the most attention. The upcoming consultation paper will focus on the direction most accepted by the local industry.
- Settlement cycle shortening to T+1: The Hong Kong Exchanges and Clearing Limited (HKEX) will "provide a timeline" in its consultation summary to be released later this year.
- ETF subscription and redemption, as well as stock lending, will also be addressed in the consultation document, detailing related challenges and arrangements.
Leung emphasized that there is no need to rush, and it is more important to give the market sufficient time to prepare.
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Source
新浪财经-股票列表Eastern
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Hong Kong SFC Notifies Mainland on Extending Trading Hours, Lunch Break Cancellation Top Option