As global stock exchanges race to expand trading hours, Hong Kong Exchanges and Clearing (HKEX) is considering a gradual extension of its working day. Experts say this move could attract international investors and boost liquidity, but it also presents significant operational and regulatory challenges.

Extending trading hours has become a key strategy for many major exchanges as competition intensifies among global equity markets. Notably, Nasdaq in the United States has announced plans to implement 24/5 trading — 24 hours a day, five days a week — starting in the second half of 2026.

The Hong Kong bourse is also considering extending trading hours in a prudent and gradual approach, according to HKEX CEO Bonnie Chan Yiting. As for now, HKEX is actively engaging with market participants on shortening the settlement cycle for the cash market, and the exchange’s technical systems will be capable of supporting T+1 settlement by the end of this year.

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Kenny Shui, vice-president of Our Hong Kong Foundation and executive director of Public Policy Institute, told China Daily that the gradual extension of trading hours at HKEX can help attract more international capital.

The introduction of 24-hour trading appeals to investors from various time zones, increasing liquidity and trading volume, he stated. However, he also warned that this shift poses significant operational challenges, as exchanges rely on market downtimes for system upgrades and implementing corporate actions.

Implementing 24-hour trading would require new operational procedures to handle technical updates and execute actions such as IPOs without causing market disruptions, he added.

He mentioned that surveillance is also a concern, as exchanges must uphold monitoring standards continuously, which may require additional staffing and regulatory coordination.

His conclusion is that extending trading hours of the HKEX should be a gradual process. A first step is to move the closing time to 6 pm, which would align with European morning trading and enhance connections with international markets, Shui proposed. The next step would be to align with US morning trading, enabling 24-hour trading of a selection of Hong Kong stocks through the use of American Deposit Receipts during market closing hours.    

In the medium to long term, Shui suggested that HKEX could explore 24/5 trading for a select group of highly liquid stocks, and this phased approach would allow for assessment of market capacity and costs before a broader rollout.

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Edward Au, managing partner of Deloitte China Southern Region, believes that extending stock trading hours is an inevitable trend. Au cited Nasdaq's plan to introduce 24-hour trading next year as an example, suggesting that Hong Kong, as an international financial center, should take proactive steps to attract more international investors from different time zones including the Middle East.  

Edmond Hui Yik-bun, CEO of Bright Smart Securities, said that 24-hour trading could boost the trading volume of Hong Kong stocks by at least 50 percent, or even double it. He also mentioned that the industry has already introduced 24-hour electronic deposit channels, demonstrating that Hong Kong possesses the necessary conditions to implement round-the-clock trading.

Hui suggested that HKEX should conduct extensive consultations with the securities industry to develop a clear implementation roadmap, enabling brokers to prepare in advance and ensure a seamless transition.

Contact the writer at mikegu@chinadailyhk.com