Hong Kong Exchanges and Clearing Limited (HKEx) announces that its Board of Directors has approved in principle today (Friday) extension of the trading hours of the stock and derivatives markets. It is proposed that extended trading hours will be introduced by the end of this year or early next year, subject to regulatory approval and market readiness.

HKEx proposes to extend the afternoon trading sessions for the securities, Hong Kong stock options and Hong Kong stock futures markets. The new afternoon trading session for the securities, Hong Kong stock options and Hong Kong stock futures markets will be from 14:00 to 16:30. HKEx likewise proposes to extend the afternoon trading session for the index derivatives market and the new trading hours will be from 14:00 to 16:45. For those futures contracts to which the pre-opening session applies, the pre-opening session will commence 30 minutes before the afternoon trading session commences.

The proposed new trading hours are as follows:

Securities, Hong Kong stock options and Hong Kong stock futures market

Morning session 10:00 to 12:30 (no change)

Afternoon session 14:00 to 16:30 (existing afternoon trading session: 14:30 to 16:00)

* Following the existing arrangement, there will be no lunch break for the Exchange Traded Funds traded under the pilot programme, that are iShares MSCI South Korea Index Fund and iShares MSCI Taiwan Index Fund.

Index derivatives market excluding Dow Jones Industrial Average (DJIA) Futures

Morning session 9:45 to 12:30 (no change)

Afternoon session 14:00 to 16:45 (existing afternoon trading session: 14:30 to 16:15)

DJIA Futures

Morning session 9:00 to 12:30 (no change)

Afternoon session 14:00 to 16:45 (existing afternoon trading session: 14:30 to 16:15)

There will be no change in the trading hours for interest rate derivatives and International Stock Futures and Options.

HKEx will discuss the proposals again with market participants and seek the Risk Management Committee's endorsement of the operating and contingency arrangements with respect to the extended hours. The implementation of the new trading hours will require amendments to the exchange rules, which are subject to the approval of the Securities and Futures Commission. Given the lead time for market preparation and subject to the SFC approval, HKEx expects to implement the new trading hours by the end of this year or early next year.

Kwong Ki-chi, the Chief Executive of HKEx, said the proposed extended trading hours would provide added convenience to investors. "The proposed extended trading hours will give investors more choices in the timing of their trades and will enable us to better meet the needs of the investing community," Mr Kwong said.

"HKEx will monitor market activities during the extended trading hours and will revisit the arrangement in the light of the experience gained," Mr Kwong added.