Hong Kong under pressure to extend trading hours amid digital asset expansion
HKEX plans to adopt digital currencies and tokenisation in the next decade, which analysts say are in demand for round-the-clock trading
With Nasdaq seeking US regulatory approval to extend its trading hours to 23 hours, some industry players believe local bourse operator Hong Kong Exchanges and Clearing (HKEX) will need to consider a similar move for certain products to enhance its competitiveness.
HKEX chief executive Bonnie Chan Yiting did not mention trading hours in her blog on Monday, but she did say the bourse operator would expand into digital currencies and tokenisation over the next decade, which analysts pointed out were the types of products in demand for round-the-clock trading.
“Trading securities 23 hours a day may not be suitable at the current stage in Hong Kong,” said Robert Lee Wai-wang, lawmaker and chairman of Hong Kong-based Grand Finance Group. “However, HKEX’s futures trading should actively explore extending trading hours as many futures markets are already trading 24 hours a day.”
The issue came under the spotlight after Nasdaq, home to tech giants such as Apple, Microsoft and Amazon, applied to the US Securities and Exchange Commission on Monday to extend trading to 23 hours per day, five days a week, up from 16 hours a day now, according to its filing.
“Nasdaq submits its proposal to extend its trading hours to compete for order flow from these investors, as well as to position itself favourably in the future to participate in markets that trade digital assets,” the filing said.