China's two major stock markets - the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) - on Saturday dismissed online rumors that the A-share market will extend trading hours and that some stocks will pilot T+0 trading settlement after the Golden Week holidays.
We have taken note of the aforementioned rumors, and the related information is not accurate, an official with the SSE told the media on Saturday.
There have been discussions in recent years about whether China's stock market should extend the trading hours for the domestic stock market, as well as the implementation of T+0 trading.
The stock exchanges are currently conducting in-depth research and analysis of trading hour extension in accordance with the unified plan of the China Securities Regulatory Commission (CSRC), the SSE official said.
In addition, the conditions for implementing T+0 trading in the A-share market are not yet mature, the SSE official said.
The SZSE also denied the rumors on Saturday.
The statements by the two major stock markets echoed a statement by a CSRC official in August.
On August 18, a spokesperson for the CSRC addressed questions from reporters about the capital market and efforts to boost investor confidence. It had been mentioned previously that research was being conducted into the possibility of extending trading hours for the A-share market.
The spokesperson said the commission believes that T+0 trading could have a positive effect on trading activity. However, it should also be noted that stock price trends depend on the quality and operating efficiency of listed companies, and the T+0 trading method has limited medium- and long-term effects on market valuations, the spokesperson noted.
In addition, the current A-share market is dominated by smaller investors, 96 percent of whom have portfolios worth less than 500,000 yuan. The implementation of T+0 trading at this stage may amplify market speculation and manipulation risks, especially for institutional investors, the CSRC spokesperson said in August.