IBA Dismisses Fears Over Longer Trading Hours At HKEx

by Philip Morton, Investors Offshore.com

09 April 2002

The senior vice-president of the International Bank of Asia (IBA) has attempted to reassure Hong Kong brokers worried that longer trading hours at the stock exchange will not achieve the desired effect if bank trading hours are not also extended.

Speaking to the South China Morning Post at the weekend, Betty Brow, who also heads the IBA's investment banking division, explained: 'There will be no problem if the stock market closes later than the bank...We have always set the settlement time an hour earlier than the stock exchange, so there would be no difference if the exchange extended its trading hours to 5pm or 6pm.'

However, critics of the plans to extend the working day at the stock market have argued that if the stock market closes later than some banks, it will be difficult for brokers to call clients to deposit more money to cover losses after banking hours.

Hong Kong Exchanges and Clearing has announced plans to reduce the stock market lunch break from 2 hours to 1, and extend trading to 5pm, in an attempt to boost turnover and enhance competitiveness. However, some small brokerage firms are also resisting the change because they will need to hire extra staff in order to cope.

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