Staff Reporter
Published:
Photo from Magnific
HKEX will first examine derivatives trading.
Hong Kong is studying longer securities-trading hours whilst advancing plans to shorten its settlement cycle to T+1 as part of efforts to strengthen market liquidity and international competitiveness.
Securities and Futures Commission CEO Julia Leung said the extension of trading hours would begin with the derivatives market.
Longer operating hours would allow investors to adjust their positions and manage risks as developments unfold across different global time zones, she said in a keynote address at an ASIFMA conference.
HKEX is expected to issue a discussion paper in the fourth quarter to gather industry feedback on extending cash-market trading hours.
The proposal remains under study, and the speech did not provide an implementation date or specify the additional hours being considered.
Over time, the longer trading window could be supported by settlement innovations involving tokenized money and the digital Hong Kong dollar.
Hong Kong is separately preparing to accelerate its securities settlement cycle to T+1, under which transactions would settle one business day after they are executed.
Leung said the shorter cycle would reduce settlement and counterparty risks, improve capital efficiency and align Hong Kong more closely with other major international markets.
Moving to T+1 would also require market participants to increase automation and strengthen their operational processes.
HKEX will soon publish the conclusions of its T+1 consultation together with a target implementation date. Leung urged market participants to review the forthcoming document and prepare for the change.
The two initiatives form part of wider market-structure reforms aimed at reducing trading friction and attracting liquidity.
Average daily turnover in Hong Kong’s stock market exceeded HK$270b in 2026, up 160% from 2023. The SFC said previous reforms had also narrowed bid-ask spreads and reduced execution times.
However, longer trading hours and T+1 settlement would carry different operational requirements. The former would require participants to support extended market access, whilst the latter would give brokers, investors and custodians less time to complete post-trade processes.
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