Hong Kong’s stock market faces increasing pressure to extend its trading hours following South Korea’s recent move to lengthen its own trading session. The Korea Exchange (KRX) began operating a real-time aftermarket trading session from 4 p.m. to 8 p.m. local time on Monday, supplementing its standard trading hours from 9 a.m. to 3:30 p.m. This expansion nearly doubles South Korea’s daily trading window to 10.5 hours on weekdays, compared with Hong Kong’s current five and a half hours of trading from 9:30 a.m. to 4 p.m., which includes a one-hour lunch break.
The extension by KRX reflects a growing global trend toward longer trading hours, as exemplified by similar initiatives at the Nasdaq and London Stock Exchange. South Korea’s move has reignited discussions about whether Hong Kong Exchanges and Clearing (HKEX) and the city’s Securities and Futures Commission (SFC) should accelerate their own review of trading hours to enhance market accessibility for international investors.
Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, observed that South Korea’s aftermarket launch adds weight to ongoing calls within the industry for Hong Kong to consider phased implementation of extended trading hours. “It reinforces the case for Hong Kong to keep studying and potentially phasing in better accessibility for global investors,” Chan said.
HKEX responded by underscoring its commitment to maintaining the city’s status as an international financial hub. A spokesperson for HKEX emphasized that the exchange regularly evaluates opportunities to improve market accessibility in line with evolving investor demands and indicated that further announcements would be made in due course.
However, industry views on extending trading hours in Hong Kong remain mixed. Kenny Ng Lai-yin, a strategist at Everbright Securities International, suggested that the impact of South Korea’s longer trading hours on turnover would serve as an important reference point for HKEX. Ng highlighted that any adjustments to Hong Kong’s trading schedule would depend primarily on local market conditions and actual demand, rather than being driven solely by actions taken elsewhere.
Concerns have also been raised by market participants cautioning against a hasty introduction of extended trading periods. Robert Lee Wai-wang, a lawmaker representing the financial services sector and chairman of Grand Finance Group, emphasized the need for thorough consultation with stakeholders to address practical challenges before making changes. “It is likely a good time to review holistically what benefits and challenges extended hours would bring to our markets and consult our stakeholders for the way forward,” Lee said.
Both regulators and market participants appear poised for a comprehensive evaluation of trading hours, weighing the potential advantages of increased flexibility against operational considerations unique to Hong Kong’s market structure.