Portfolio | Longer hours a benefit to Shanghai bourse
Move to later close would ease trade if proposed London link is to work
The Shanghai Stock Exchange should amend its trading hours to overlap with London trade, an important move if the proposed stock connect between the two cities is to work.
Shanghai’s morning and afternoon sessions cumulatively amount to only four hours of trade a day, less than half that of London and ranking as the shortest opening among major markets.
Although the Shanghai bourse has made no official comment on extending its trading hours, it makes sense to consider the move, especially as it would bring the bourse closer its stated goal to become an international financial hub by 2020.
Extending the afternoon trading session by one hour would allow an overlap with London and bring Shanghai closer in line with international practice.
At present, trade in Shanghai ends for the day at 3.00pm time, which corresponds to the daily 8.00am opening of the London Stock Exchange.
Another option is for London to amend its trading hours, perhaps shifting the start to 7.00am or 6.00am, so as to provide an overlap with Shanghai.