Hong Kong Exchanges and Clearing Limited (HKEx) announced on Tuesday that its Board of Directors has decided to extend the trading hours of the securities and derivatives markets in two phases beginning in next March, to strengthen its competitiveness.

HKEx noted that the proposed changes will improve the price discovery function for Chinese mainland-related securities by increasing the overlap of trading hours with the mainland exchanges. This will also strengthen HKEx's competitiveness by narrowing the gap between its trading hour duration and those of regional competitors.

Beginning on March 7, 2011, the first Monday of the month, the continuous trading session of HKEx's securities market will be from 9:30 a.m. to 12:00 noon and then from 1:30 p.m. until 4:00 p. m.

Beginning on March 5, 2012, the first Monday of the month, the continuous trading session of HKEx's securities market will be from 9:30 a.m. to 12:00 noon and then from 1:00 p.m. until 4:00 p. m.

HKEx's derivatives markets and the auction sessions of both the securities and derivatives markets will start earlier along with the continuous trading session of the securities market.

HKEx made the decision after careful consideration of the responses to its consultation paper on the proposed changes to the trading hours of its securities and derivatives markets published on Sept.17, 2010.