Hong Kong Urged to Extend Stock Trading Hours to Stay Competitive

Hong Kong Urged to Extend Stock Trading Hours to Stay Competitive

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Think tank calls for longer HKEX session as London and New York explore 24-hour trading

Hong Kong Must Match Global Rivals on Trading Hours, Experts Warn

Hong Kong’s stock exchange is facing pressure to extend its daily trading session after a leading think tank warned that rival markets in London and New York are already moving toward around-the-clock trading, and that the city risks losing ground if it does not adapt. Kenny Shui Chi-wai, vice-president of Our Hong Kong Foundation, made the call on Monday at a forum organised by the South China Morning Post. He argued that the Hong Kong Stock Exchange, which currently operates for five and a half hours each weekday from 9:30 in the morning to 4 in the afternoon with a one-hour lunch break, needs to rethink its trading schedule to maintain global competitiveness and increase transaction volumes. The comments came as the Hang Seng Index slid 1.35 percent on a day of broad market weakness driven by the Iran war’s impact on oil prices.

The Global Race Toward Extended Hours

Shui noted that in the past, Hong Kong, London, and New York had complemented each other to provide around-the-clock coverage of global trading. That complementary arrangement worked because each exchange covered its own regional time zone. But the equation is changing. Nasdaq has announced plans to implement 24-hour-a-day, five-day-a-week trading in the second half of 2026. The London Stock Exchange is also exploring extended hours. As those markets push beyond their traditional sessions, Hong Kong’s five-and-a-half-hour window looks increasingly out of step with where global finance is heading. HKEX CEO Bonnie Chan has said the exchange is considering extending trading hours in a prudent and gradual approach, and that the exchange’s technical systems will be capable of supporting same-day settlement by the end of this year.

A Phased Approach: From 4pm to 24/5

Shui outlined a phased approach he believes would be practical and effective. As a first step, he proposed moving the closing time from 4 in the afternoon to 6, which would align with European morning trading and deepen connections with international markets. A second step would align Hong Kong trading with US morning hours, enabling 24-hour trading of selected Hong Kong stocks through American Depositary Receipts during regular market closing hours. In the medium to long term, he proposed that HKEX explore 24/5 trading for a select group of highly liquid stocks, with each phase allowing time to assess capacity and cost before proceeding. Edward Au, managing partner of Deloitte China Southern Region, described extended trading hours as an inevitable trend. Edmond Hui of Bright Smart Securities suggested that 24-hour trading could boost Hong Kong’s trading volume by at least 50 percent or possibly double it, noting that the industry has already introduced 24-hour electronic deposit channels.

What Is at Stake for Hong Kong’s Financial Future

The debate over trading hours is part of a broader conversation about how Hong Kong can maintain and enhance its status as Asia’s leading financial hub at a time when Singapore, Shanghai, and other regional centres are competing aggressively for capital, listings, and talent. HKEX reported record profits in 2025 and topped global IPO rankings, but the exchange’s leadership has acknowledged that the current macroeconomic environment is volatile and that the advantages Hong Kong has built cannot be taken for granted. The Bank for International Settlements has highlighted the importance of market infrastructure quality in determining where global capital flows. Hong Kong’s settlement systems, regulatory framework, and legal infrastructure remain among its strongest assets. Extending trading hours would require significant coordination across brokerages, clearing houses, and regulatory bodies, all of which would need to manage the operational implications of longer working days for both systems and people.

The Geopolitical Dimension

It is impossible to discuss Hong Kong’s financial future without acknowledging the political context. The city has operated under the National Security Law since 2020, and many international observers have raised concerns about judicial independence and the rule of law as factors that affect investment decisions. At the same time, Hong Kong’s exchange has continued to perform strongly, driven in part by the growing integration with mainland Chinese capital flows through the Stock Connect program. Whether extended trading hours would primarily benefit international investors seeking greater access, or primarily benefit mainland investors engaging in after-hours activity, is a question that carries implications beyond market efficiency alone. For now, the pressure to reform is real and the arguments for it are compelling.

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