Trading Hours to be Extended
in Two Phases
HKEx has received the
regulatory approval to
extend the trading hours
of its securities and
derivatives markets1 in
two phases in order to
give its Participants and
other stakeholders time
to adjust to the revised
trading schedule.
The first phase takes effect from 7 March this year, when trading in the
securities market will be from 9:30 am to 12 noon and then from 1:30
pm until 4:00 pm. Beginning on 5 March 2012, trading in the securities
market will be from 9:30 am to 12 noon and then from 1:00 pm until 4:00
pm. The new trading hours for stock futures and stock options will be
the same as those for securities, while trading of index futures and index
options will continue to begin 15 minutes before the securities market
opens in the morning and end 15 minutes after the market closes at 4 pm.
The securities market’s pre-opening session and the pre-market opening
periods 2 in the derivatives market will continue to begin 30 minutes before
the corresponding trading sessions.
Benefits
The extended trading hours will improve the price discovery process for
Mainland-related securities listed in Hong Kong by increasing the overlap
of HKEx’s trading hours with those of the Mainland exchanges. After the
Phase 1 changes, HKEx’s trading hours for securities will overlap with the
Mainland’s for 3.5 hours and there will be a 4-hour overlap in the derivatives
markets. Phase 2 will complete the overlap. Trading hours on a typical
business day will continue to be longer in Hong Kong than on the Mainland.
HKEx’s revised trading hours (5 and 5.5 hours for the securities and
derivatives markets respectively upon Phase 1 implementation and 5.5
and 6 hours respectively upon Phase 2 implementation) also will strengthen
its competitiveness by narrowing the gap between its trading hours and
those of its regional competitors.
Results of Market Consultation
The decision to extend the trading hours was based on the feedback
collected from a six-week public consultation that began on 17 September
last year. HKEx received a total of 556 submissions from a wide spectrum
of respondents, including its Participants, brokerage industry associations,
listed companies and a related association, groups representing banks,
fund managers and market practitioners, other entities and individuals.
1
Derivatives market refers to HKEx’s stock futures, stock options, index futures and index options
markets.
2
The pre-market opening periods only apply to the Hang Seng Index, Mini-Hang Seng Index and
H-shares Index futures.
6
Exchange • January 2011
Trading Hours to be Extended in Two Phases
The vast majority of respondents supported an earlier opening time in
the morning. There was also widespread support for a shorter lunch
break. However, they were mixed on the details, with advocates calling
for no lunch break, a 1-hour lunch break, a 1.5-hour lunch break and the
status quo.
Way Forward
HKEx will continue to monitor both the relationship between the Hong
Kong and Mainland markets and its markets’ competitiveness vis-à-vis
other markets in the region. If warranted by future developments, HKEx
will review its trading hours again at the appropriate time and determine
whether further changes are needed.
Details of the consultation conclusions are available on the HKEx website.
7
Exchange • January 2011