HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) will no longer suspend stock trading due to typhoon, rainstorm or other extreme weather conditions, starting from September 23, 2024, Hong Kong Special Administration Region Chief Executive John Lee Ka-chiu said on Tuesday. 

Under the new arrangement, investors will be able to trade stocks and derivatives at the HKEX, or trade stocks listed on Chinese mainland's A-share market through the Shanghai Connect and Shenzhen Connect system, despite facing severe weather conditions.

Major global stock markets such as Shenzhen and Shanghai are able to maintain trading despite severe weather conditions, so there is no reason for Hong Kong not to follow them, Lee said, noting that the majority of stock trading in HKEX is currently digitalized, making it possible for trading to continue in severe weather conditions.

Data from HKEX showed that severe weather conditions have forced market closures on 11 occasions since 2018, including four suspensions in 2023, leading to stock trading being suspended over several hours and sometimes days. 

According to a public consultation session conducted by the HKEX, about 90 percent of brokers and banks that account for the total market trading volume support the implementation of non-stop trading despite hazardous weather conditions, Lee said. 

Lee noted that not suspending trading during severe weather conditions will strengthen HKEX's competitiveness, and enhance Hong Kong's role as a gateway for both global and Chinese mainland-based markets.

Hong Kong is among the very few markets used to suspend equities and futures trading in extreme weather events. The city abandoned physical trading in 2017 in favor of electronic transactions. 

Global Times