Hong Kong aims to stop shutting down stock exchange for typhoons by September, source says

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‘We are pleased to have received broad support for the implementation,’ of the proposed change, says HKEX

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The HKEX is planning to scrap its decades-old practice of halting trading when the observatory issues a Typhoon signal No. 8 or a black rainstorm alert. Photo: Dickson Lee

Enoch Yiu

Published: 5:02pm, 7 Jun 2024Updated: 5:53pm, 7 Jun 2024

Hong Kong is working hard on a new policy to keep its stock and derivatives markets open during typhoons or torrential rains, with a view to making the change in September, according to a source with knowledge of the matter.

Bourse operator Hong Kong Exchanges and Clearing (HKEX) is planning to scrap its decades-old practice of halting trading or shutting the market entirely when the observatory issues a Typhoon signal No. 8 or higher, or raises a black rainstorm alert.

The source told the Post that the exchange is working on the details before introducing the measure and has set an internal target of September – the height of the typhoon season.

The move will help improve market turnover and bolster the taxes the government collects from stamp duty on the trading of shares, according to stockbrokers.

“The consultation on the Severe Weather Trading proposal concluded earlier this year, and we are pleased to have received broad support for its implementation, which will further enhance Hong Kong’s competitiveness as an international financial centre,” HKEX said in a statement after the Post asked about the timeline on Friday.

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“We are actively working with the [government], the SFC, and the HKMA to finalise the model and target to publish the consultation conclusions by midyear.”