Taiwan stock market's trading hours extension faces scrutiny

Taiwan's stock market is contemplating an extension of its trading hours, a move that has prompted a measured response from the Financial Supervisory Commission (FSC). Hsieh Chin-ho, chairman of President Securities Corporation, believes that simply extending trading hours to match international standards is not the primary concern. He emphasizes that any such systemic change requires a comprehensive evaluation of its potential impact across all industries and on the daily lives and work routines of financial professionals. Hsieh recalled that the last time Taiwan's stock market extended its trading hours was in 2001, during the Chen Shui-bian administration. At that time, the closing bell was moved from noon to 1:30 p.m., a decision that faced criticism for potentially disrupting lunch breaks and for its uncertain effect on trading volumes. Later, during the Ma Ying-jeou administration, then-FSC Chairman Tseng Ming-chung also explored extending trading hours, but the initiative stalled after his departure in early 2016. With renewed calls for longer trading sessions, Hsieh notes that the Taiwan Stock Exchange appears enthusiastic, while the FSC remains more reserved. He pointed out that neighboring countries like Japan and South Korea close their markets by 3 p.m. local time, which is 2 p.m. in Taiwan, and that their trading structures vary. Hsieh argues that aligning with international practices is less about specific hours and more about systemic compatibility. He believes Taiwan should consider its unique market ecosystem, particularly the effects on brokers, securities professionals, and bank employees, as well as general market participants. Many professional investors, he noted, only have lunch after the market closes. Hsieh stressed that the current trading schedule has been the norm for over 25 years, and any decision to change it should be carefully considered by the FSC and the stock exchange to ensure it represents the broadest consensus for the market, rather than being a change for change's sake.

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Whether to extend stock market trading hours requires a comprehensive assessment of the impact on all industries first.