Recently, the relevant person in charge of the China Securities Regulatory Commission stated in response to reporters' questions on revitalizing the capital market and boosting investor confidence, "Researching the appropriate extension of trading hours in the A-share market and exchange bond market to better meet investment trading needs." As one of the important measures to optimize and improve trading mechanisms and enhance trading convenience, extending trading hours is of positive significance for revitalizing the capital market, and is conducive to improving market pricing efficiency Attracting international investors to participate in the A-share market. Tian Xuan, Vice Dean of the Wudaokou School of Finance at Tsinghua University, told Securities Daily that extending trading hours is beneficial for enhancing the attractiveness of A-shares to global investors. From the perspective of trading hours in major global securities trading markets, A-shares currently have the shortest trading time, totaling 4 hours. The daily securities trading time in the UK, France, and Germany is the longest, reaching 8.5 hours; The daily trading hours of the New York Stock Exchange in the United States are 6.5 hours; The trading duration of the Hong Kong Stock Exchange is 5.5 hours. Lu Zhe, Chief Economist of Debang Securities, stated that currently, the trading time of A-shares is indeed relatively short, and some investors' trading needs have not been fully met under the current framework. Covering more trading hours is beneficial for international investors to participate in the Chinese capital market. With the increasing capacity of the A-share market and higher daily trading volume, extending trading hours is beneficial for reducing market volatility. For some investors, extending trading hours is more conducive to scientific decision-making and responding to changes in the external market. "Zhou Jianhua, a strategic analyst at Zhongyuan Securities, told Securities Daily. In Tian Xuan's view, insufficient trading time will affect market pricing efficiency. Meanwhile, if the non trading period is too long, it may amplify the risk of overnight trading, leading to increased volatility in the stock market. At present, the trading duration of A-shares is clearly insufficient to support the daily trading volume demand of over trillion yuan in the market, increasing the risk of abnormal fluctuations in the stock market. However, on social media platforms, some investors believe that extending the trading hours of the stock market will also result in longer 'loss periods' for investors. In this regard, Zhou Jianhua said: "Extending the trading time only provides investors with more time to make decisions and trade, and the right and wrong investment decisions are the key to affecting profits and losses." "In fact, information asymmetry caused by insufficient trading hours will increase the transaction costs and risks of small and medium-sized investors." Tian Xuan said, taking the Hong Kong stock market as an example, the current trading hours of Hong Kong stocks are 5.5 hours a day, One and a half hours more than A-shares. This one and a half hour trading time difference can easily lead to information asymmetry, invisibly increasing the transaction information cost and risk for A-share market investors, especially small and medium-sized investors. Regarding the adjustment of trading time, Tian Xuan believes that the institutional arrangements of mature capital markets cannot be simply and roughly copied. It is recommended to synchronize with Hong Kong stocks while ensuring that the trading order in the capital market is basically controllable. Zhou Jianhua holds a similar view, stating: "Due to the current interconnection between the A-share and Hong Kong stock markets, continuous trading time synchronization can be initially achieved. After the time is ripe, post market trading will gradually be achieved." (Xinhua News Agency)
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
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