On September 1, 2023, sandbags were placed near the coast in a residential area when Super Typhoon Saola Warning No. 8 was issued in Hong Kong, China.
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Hong Kong will no longer close its stock market during bad weather, according to a Bloomberg report citing people familiar with the matter.
The plan, which reportedly could begin as soon as September, would mean Hong Kong’s $4.2 trillion (HK$32.8 trillion) market would not halt trading during typhoons or heavy rains.
The Hong Kong Exchange typically halts trading when a typhoon signal or a so-called “black rain warning” is issued.
Nicholas Aguzin, the former CEO of Hong Kong Exchanges & Clearing, told CNBC in 2022 that the exchange was reviewing its protocol.
According to the Hong Kong Meteorological Observatory, there will be 11 tropical cyclones reaching typhoon strength or above in 2023, lower than the 60-year average of about 15 from 1961 to 2020.
The Hong Kong exchange plans to announce the framework within weeks, according to people familiar with the matter who spoke to Bloomberg, but the plan is still being finalized and could change at the last minute.
The proposal would facilitate continued trade and “strengthen Hong Kong’s position as a two-way gateway connecting international and mainland Chinese markets, and enhance its competitiveness as an international financial centre,” a government spokesman told Bloomberg.
“Our goal is to announce relevant implementation details and timelines mid-year.”
Government officials are reportedly pushing for the plan to be implemented as soon as possible, with a three-month preparation period seen as achievable.
But with three months to prepare, the exchange will likely implement the plan right in the middle of typhoon season.
Currently, the Hong Kong Exchange will suspend morning trading if extreme weather conditions persist between 9am and 11am Hong Kong time, and will suspend trading for the day if the extreme weather conditions persist beyond 12pm.
According to climate database World Info, the Pacific typhoon season usually starts in April with less intense storms and lasts until November, but the most intense typhoons usually occur in August and September.
read more upon Read the Bloomberg report here.
