HONG KONG: Thousands of stock traders, brokers and other financial professionals in Hong Kong may soon lose their lunch hour – and some aren’t happy about it.
A preliminary proposal by the city’s exchange to scrap the midday break and extend trading hours has drawn criticism, particularly from local firms, who question whether any boost in volumes would be enough to offset the burden of a longer work day.
If adopted, the changes would mark the first trading extension by Hong Kong Exchanges & Clearing Ltd (HKEX) in more than a decade, disrupting a fixture of the local market that many rely on to wrap up morning deals and pitch new business.
Longer hours may also favour larger brokers, which have more staff to stagger their shifts.
Discussions are at an early stage but proposals under consideration also include beginning trading 30 minutes earlier at 9am and adding an evening session aimed at overlapping with early US trading.
This would also bring Hong Kong more in line with global markets.
“The manpower and resource involved to change is simply too much to justify the outcome,” said David Wong, permanent honorary chairman of the Hong Kong Securities & Futures Professionals Association.
Trading times have long been a sensitive issue in the Asian financial hub.
A move to trim the lunch break to one hour from two hours in 2011 led to about 1,000 stockbrokers and restaurant staff taking to the streets in protest, an effort organised by Wong (the HKEX ultimately succeeded in pushing through the changes).
While New York, London and other Western financial centres trade continuously through the day, lunch breaks remain common across Asia and exist in major markets including Tokyo, Singapore, Shanghai and Shenzhen.
Many global banks and major brokerages tend to stagger lunch schedules, allowing staff to cover futures – which trade without a break – as well as other regional markets.
Small brokers focused on Hong Kong and mainland Chinese equities face greater disruption.
In the dense financial neighbourhoods of Central, Admiralty and Sheung Wan, junior staff tend to use the midday pause to reconcile morning trades and complete admin work before grabbing a lunch at local eateries offering wonton noodles or barbecue pork with rice ahead of the afternoon session.
Senior traders and broker owners, too, use that lunch break to meet clients.
Mid-day meals with clients often fill calendars and provide an opportunity to grow relationships and exchange market views and chatter.
Such activities could become harder to accommodate under the new hours.
A representative for HKEX referred to their statement Monday, which said that they’re “committed to continuously enhancing Hong Kong’s competitiveness” as an international financial centre and reviewing opportunities to improve access.
HKEX’s move reflects a broader push by global exchanges to capture more around-the-clock volumes. — Bloomberg
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