Hong Kong’s stock exchange is considering an extension of equity trading hours to align with most global markets, including a proposal to eliminate the lunch break, according to people familiar with the matter.
Hong Kong Exchanges & Clearing relayed plans in recent weeks to major brokers and trading firms, the people said, asking not to be named because the information is private.
In one of the options, the bourse proposed to start equities trading 30 minutes earlier at 9am, and scrap the one-hour lunch break that starts at noon, the people said.
Hong Kong is home to one of the few major exchanges that still keep a lunch hour, alongside China and Tokyo. Trading schedules have long been a contentious issue for the financial hub’s more than 500 brokerages, with moves to extend trading hours sparking protests in 2012.
HKEX is also mulling an after-hour session to catch early US activity, potentially between 8pm and midnight, the people said. It will keep the market-close at 4pm to allow for clearing and settlement, they added.
The evening slot, if installed, will be limited to a handful of larger stocks, which draw more investor interest, some of the people said. The Hong Kong exchange wants to drive home trading volume of firms that also have American depository receipts, some of the people said.
Another issue is whether China will join the extended hours for the more than 600 eligible stocks for the Southbound Stock Connect, two of the people said.
About 23 per cent of Hong Kong’s equity market turnover as at 2025 was generated through southbound Stock Connect, which allows mainland investors to trade Hong Kong stocks.
Based on preliminary feedback, some market participants are sceptical about the evening session, as trading costs remain high in Hong Kong. Investors are likely to prefer hedging with US-listed options, some of the people added.
The exchange is still evaluating several proposals, which remain subject to change, the people added. The bourse will solicit wider feedback later in 2026 when the arrangements are more mature, the people said.
“HKEX is committed to continuously enhancing Hong Kong’s competitiveness” as an international financial centre the bourse said in a response to a Bloomberg query, adding that it is reviewing opportunities to bolster market accessibility, including trading hours.
The exchange said it regularly explores a range of ideas, while enhancements to cash market trading remain at “a very early, exploratory stage”. Any future adjustments would require assessment of market implications, stakeholder feedback and connectivity arrangements, including Stock Connect, it added.
The Securities and Futures Commission said it has had preliminary discussions with the exchange “regarding the possible enhancements to trading hours to assess their impact, and remains committed to working closely with stakeholders”.
Traditional exchanges worldwide are extending hours in pursuit of near-24-hour trading, inspired by virtual asset markets and spurred by Nasdaq’s plans to operate 23 hours a day, five days a week.
Since 2024, HKEX has kept markets open during extreme weather, replacing its longstanding practice of closures during typhoons and strengthening its readiness for extended-hour trading.
Hong Kong’s futures and options market already operates well beyond midnight, with most major contracts trading until 3am. The exchange has previously floated plans to extend trading hours further.
“Our current focus in the first instance is on the proposed enhancement of derivatives market trading hours, which remains subject to further market engagement and regulatory approval,” the exchange added on July 20.
Sensitive issue
Working hours have been a sensitive issue. In 2011, Hong Kong extended trading hours by bringing forward the morning session from 10am to the current 9.30am, and gradually shrinking the lunch break from two hours to one.
About 1,000 stockbrokers took to the streets to protest against then HKEX chief executive Charles Li, arguing that a shorter lunch break harmed their health and reduced opportunities to swop ideas with clients. Despite the opposition, the reform went ahead and the extended trading hours remain in place today.
As at May, the top 65 brokerages generated almost 97 per cent of market turnover, while 443 smaller firms shared the remaining 3.44 per cent.
