Stock trading hours should not be changed arbitrarily

Due to the booming stock market before the National Day holiday, there was a call in the market before the holiday for the stock market not to close during the National Day. On the evening of October 6th, the Shanghai Stock Exchange issued the "Notice on Extending the Time for Accepting Designated Transaction Instructions," which was misinterpreted by many investors as an extension of stock trading hours.

The aforementioned "call" and "misinterpretation" are not hard to understand. After all, the stock market before the National Day holiday was very hot, showing a gushing market trend. This kind of trend can obviously bring wealth effects to investors, so investors hope that such a trend can continue, unaffected by the National Day holiday and trading hours. Investors' desire to make more money further is understandable.

Moreover, on August 18 last year, when the China Securities Regulatory Commission (CSRC) responded to reporters' questions about invigorating the capital market and boosting investor confidence, it mentioned in a series of policy combinations that "research on appropriately extending the trading hours of the A-share market and the exchange bond market to better meet investment and trading needs" was included. Therefore, under the current hot market conditions, investors are even more looking forward to extending stock trading hours.

Advertisement

Investors' desire to make more money during a bull market or a hot market is understandable, as the purpose of entering the stock market is to make money through investment. Now that the stock market is hot, investors certainly do not want to miss such opportunities and even hope to extend the opportunity to make money.

Although investors' feelings can be understood, stock trading hours should not be changed arbitrarily, including extending stock trading hours. After all, changing stock trading hours is a matter that affects the whole body, involving all aspects of society, and it can even disrupt the work and life rhythms of people in industries related to the capital market. Therefore, the change in stock trading hours should not only consider the stock trading itself but also the impact of changing stock trading hours on all aspects of society.

Moreover, changing trading hours, including extending stock trading hours, does not necessarily increase the profitability of the stock market. After all, there are bull and bear markets in the stock market, and the A-share market is more bearish than bullish. Although investors hope to extend the stock trading hours during a bull market, what about a bear market? Do they all hope to end the trading hours earlier? In that case, should stock trading hours be constantly changed according to the different bull and bear markets? This approach is obviously not what a mature market should have.

Furthermore, even in a bull market, extending stock trading hours may not necessarily increase the profitability of the stock market. After all, a round of market trends will always form a top. For example, assuming the top of the current round of market trends is at 4,000 points, if the stock market does not close during the National Day holiday and further extends stock trading hours, the market may reach the 4,000-point position earlier, and then the stock market trend will show a回调 trend.

Now that the stock market has not opened during the National Day holiday, and stock trading hours have not been further extended, the time for the stock market trend to reach 4,000 points will be delayed, and the callback trend of the stock market trend will also be delayed. It can be seen that even in a bull market, extending stock market trading hours does not necessarily increase the profitability of the stock market. There is no need for the stock market to extend its trading hours just because of a bull market or a hot market.

Therefore, for the change of stock trading hours, the management must be cautious and not change the stock trading hours arbitrarily. However, based on humanized considerations and to meet the needs of investors for stock trading during a bull market, while maintaining the current 4-hour stock trading hours unchanged, a bull market trading period can be set, that is, extending the daily stock trading hours by one hour, with both morning and afternoon trading hours postponed by half an hour. On the one hand, this can meet the needs of investors for stock trading during a bull market, and on the other hand, it can avoid more junk trading hours during a bear market, leading to a waste of resources in all aspects of society, thus controlling the impact of extending stock trading hours on all aspects of society to the lowest extent.