Hong Kong stocks to scrap lunch break

By CNN's Alex Frew McMillan

HONG KONG, China (CNN) -- Hong Kong's stock exchange wants to extend its hours.

Hong Kong stocks currently trade for four hours each day. Hong Kong Exchanges and Clearing Ltd., the parent company of the exchange, proposes extending that to eight hours in the regular day session.

It is also looking at setting up a night session. The company published a consultation paper on Tuesday that outlines the ideas.

Market participants have until October 8 to respond.

The new hours would eliminate the lunch break in Hong Kong trading. Stocks currently trade from 10 a.m. to 12:30 p.m. local time, then stop for lunch. Trading resumes at 2:30 p.m. through 4 p.m.

A move in line with other exchanges

Under the new plan, the stock exchange would operate continuously from 10 a.m. through 6 p.m. The night session would run from 8 p.m. through 11 p.m. The Hong Kong stock-exchange operator said it was bringing its hours in line with practices around the world.

Extended-hours trading is now prevalent on U.S. systems such as Instinet, and Nasdaq is working toward 24-hour trading.

The London Stock Exchange recently extended its hours, as have the exchanges in Taiwan and South Korea.

Tokyo plans an evening session from 8:30 p.m. to 11:30 p.m. China's exchanges in Shanghai and Shenzhen have recently said they'll introduce evening sessions.

Though large Chinese companies used to list exclusively on overseas exchanges such as Hong Kong to raise capital, they have increasingly started to look to raise money at home markets.