Recently, some scholars have written that the trading time of mature market is long, and the trading time of A-share is too short. Its disadvantages include that it may lead to greater volatility such as overnight short jump, affect the pricing efficiency of the market, and some investors lose trading opportunities due to the conflict between trading time and working time. Therefore, it is suggested to extend the trading time of a shares and move closer to the mature capital market. It is difficult for the author to agree with this.
The stock trading time of NYSE and Nasdaq was 6.5 hours, but judging from the market performance during the first half of the epidemic, the trading time was long, which did not eliminate the phenomenon of overnight short jump, nor suppress the huge market fluctuations. On the contrary, the overnight short jump and volatility were more violent. The fluctuation range of the main indexes of the two exchanges was much higher than that of the Shanghai Composite Index and the Shenzhen composite index.
We can imagine that if the above reasons for extending the trading time of stocks work, the ideal state is to trade 24 hours a day, which can completely overlap the trading hours of mature markets and eliminate overnight short jump phenomenon. However, we can imagine how painful it will be for investors. Needless to say, 24-hour trading, even if it is 10 hours, 8 hours, how many investors can focus on the market? If you dont mark the market, investors are worried about the loss of profit opportunities or losses caused by stock price fluctuations during the period.
From this point of view, the length of trading time set by the stock exchange should not only consider stabilizing market fluctuations and improving pricing efficiency, but also consider the human factor of investors, which should be people-oriented. Trading is a choice made by investors on the basis of collecting and analyzing a large amount of information. It is a kind of mental work that requires high consumption. This kind of consumption actually destroys the body more than physical labor. Some investors suffer from neurasthenia and do not think about food and drink. If the investment fails, it will be even more painful.
One of the main reasons why some people suggested to cancel the night trading of commodity futures in China is that the night trading of Commodity Futures (21:00-23:30) in disguise occupies the rest time of traders, which seriously affects the balance of traders health and family. Some even think that this will seriously affect Chinas fertility rate. As for the A-share market, some deputies to the National Peoples Congress have suggested that the trading time of the stock market should be shortened by one-third or half. The stock market itself does not create wealth, but redistributes part of the social wealth. A longer trading time also seriously affects peoples lives.
The author believes that the extension of trading time of the stock exchange is not obvious to improve the pricing efficiency and eliminate overnight short jump, but its side effects are very obvious. Due to the high proportion of institutional investors in mature markets, there is still a way to deal with the long trading time, that is, different traders work in shifts. However, the proportion of individual retail investors in the A-share market is relatively high, which makes it difficult to watch the market in shifts. If the trading time is too long, it will not only affect the efficiency of their own work, but also affect the health of Chinese people.
During the period of A-share bull market, the negative effect on the national economy has already appeared. Investors are not willing to work. It can be said that the prosperity of virtual economy has caused a great negative impact on the real economy. The author thinks that the trading time of A-share should not be extended or even shortened, and it is better to stagger the trading time with working hours. Therefore, it is suggested to cancel the morning trading period of a shares, open call auction at 14:45 p.m., 15:00-17:00 for the first half trading time, and 19:00-20:30 for the second half, so that some trading periods can overlap with mature markets and strengthen market connection, At the same time, because of avoiding the working hours of Chinese people, it can greatly improve the working efficiency of Chinese peoples own work, and achieve the mutual development of virtual economy and real economy. (the author is a capital market researcher) source: Yang Bin, editor in charge of Securities Times_ NF4368
During the period of A-share bull market, the negative effect on the national economy has already appeared. Investors are not willing to work. It can be said that the prosperity of virtual economy has caused a great negative impact on the real economy. The author believes that the trading time of a shares should not be extended, or even shortened, and the trading time should be staggered with the working time
Cancel the morning trading period of A-share, open the call auction at 14:45 p.m., 15:00-17:00 is the first half trading time, and the second half trading time is 19:00-20:30. In this way, some trading periods can overlap with the mature market, strengthen the market connection, and attract foreign capital to invest in a shares. At the same time, by avoiding the working hours of Chinese people, the working efficiency of Chinese people can be greatly improved The virtual economy and the real economy are developing together.