Editorial | Winners and losers with Hong Kong’s wind of change
While Hong Kong stock exchange for the first time traded normally through a typhoon No 8, the city’s popular horse racing took a hit
Tropical Storm Toraji may have seemed largely a non-event to those braced for violent weather. What set it apart is that the city’s stock exchange broke with past practice by trading normally.
By contrast, the Jockey Club abandoned the last three races of a nine-race card at Happy Valley on Wednesday night ahead of a typhoon signal No 8 being issued. Much has changed since the stock exchange introduced shutdowns or trading halts during typhoons or black rainstorm warnings 70 years ago.
Chief Executive John Lee Ka-chiu announced an end to the practice from September after a public consultation showed overwhelming support from market participants. The question is whether the weather should get in the way if Hong Kong wants to be a competitive international finance centre.
There is no question safety has been enhanced over the years by better construction, and improvements to flood control, transport and communication. But factors that finally made a difference included the switch to electronic trading seven years ago, practical experience of working from home during the pandemic and competition from other stock exchanges, including Shanghai and Shenzhen, which continue trading during severe weather.
Happily, the first day of operations in the city’s financial markets under typhoon conditions went smoothly, while the No 8 signal was lowered at 10.20am.
