A similar proposal was put up in 2003 but failed as a result of opposition from brokers. Nonetheless, the argument for extension is simple: The two-hour lunch break between the morning and afternoon sessions in Hong Kong is the longest among the world's 20 major stock exchanges. Extending the trading hours is generally believed to enhance the competitiveness of the local financial market.
But, I beg to disagree.
A simple and earthly reason is a long trading hour would attract speculators and aggravate market fluctuation. (Yes, true, a high volume of speculating trade increase the profit of HKSE - that's why the Venetian and Sands and others are opened 24 hours a day, 7 days a week.)
On the other hand, serious investors do not need frequent trading. As pointed out by Warren Buffett, a good investor needs to trade once a year (for updating his portfolio) and enjoy his life the rest of the time.
PS. A side-track but inevitable consequence of this very suggestion of our giant in investment is related to how we choose a trust fund - another important topic that we can discuss later.
Or I should ask my friend Warren to discuss later.
1 comment:
I don't think you can find a fund manager who runs a portfolio that is better than yours.
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