Plans To Extend HKEx Trading Hours Under Threat

by Carla Johnson, Investors Offshore.com

10 October 2001

A plan to extend the trading hours of the Hong Kong Exchanges and Clearing Ltd (HKEx) could be under threat following furious opposition to the proposal from members of Hong Kong's brokerage community.

The HKEx published a consultation paper in early September inviting interested parties to comment on the proposal which included: extending the morning session from 12:30 to 14:30 hours and doing away with the lunch break; extending the close of the afternoon session from 16:00 to 18:00 hours for the stock market and from 16:15 to 18:15 for Hong Kong stock-related derivatives markets; and introducing an evening trading session from 20:00 to 23:00 hours.

At the time, Kwong Ki-chi, executive of the HKEx, explained: 'HKEx believes there is a clear need to re-examine its trading hours in order to maintain its competitiveness and strengthen Hong Kong's position as a leading international financial centre.'

However, Choi Chen Po-sum, chairman of the Institute of Securities Dealers representing 1,000-plus stock brokers, told the South China Morning Post this week that his members have rejected the proposal in an unanimous vote within the Institute. Mrs Choi said that most dealers had suggested instead that it trading hours should match those of the banks' business hours from 9.30am to 1pm and from 2pm to 5pm.

In agreement is the Hong Kong Stock Stockbrokers' Association which has performed its own survey amongst members which discovered that 91 per cent of the 450 respondents rejected the idea of extending the trading hours into the evenings with 1 per cent actually in total favour of the plan.

The HKEx's public consultation ended on Monday and has not yet disclosed the number nor the nature of the comments.

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