Hong Kong Exchanges and Clearing Limited (HKEX) Chief Operating Officer Liu Biyan has indicated that extending trading hours for derivative products will be a priority, with the goal of fully covering the closing period of the U.S. stock market. However, a specific implementation timeline has not yet been determined, as market readiness and regulatory feedback are still under consideration.
Liu emphasized that the motivation behind extending trading hours is not to compete with other exchanges on duration, but to create more overlapping time with different markets. This is intended to attract greater international capital allocation to Hong Kong assets.
Regarding the extension of trading hours for the Hong Kong stock cash market, Liu pointed out that this would present significant challenges. In addition to accommodating local Hong Kong brokers and investors from both mainland China and Hong Kong, coordination with mainland authorities regarding the stock connect schemes may be required. A market consensus has not yet been reached, and further in-depth and broad research is necessary.
Commenting on Nasdaq's plan to extend its trading day to 23 hours, Liu expressed that if Hong Kong were to follow suit, it might not be beneficial for the local market and could even introduce problems. These include risk management issues arising from insufficient system maintenance time, as well as the need for market participants to make substantial adjustments to staffing.
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