Editorial | New typhoon trading rule a boost for Hong Kong’s role as financial hub
- Decision revealed by Chief Executive John Lee will allow shares to change hands even under the most extreme weather
Stock exchange trading halts or shutdowns during Hong Kong’s typhoon or black rainstorm warnings were introduced for good reasons at the time.
Few could have foreseen how much would change in the following 70 years, leading to the end of the practice on September 23.
Progress that has made people safer from violent storms – such as better construction, flood control, transport and communication – has until now had little effect on absence from the office once typhoon signal No 8 is issued.
Factors that tilted the balance and finally made a difference to the stock exchange include the switch to electronic trading seven years ago, work-from-home experience during the Covid-19 pandemic and international and regional competition from other stock exchanges, including Shanghai and Shenzhen, that continue trading through severe weather.
Revealing the decision, Chief Executive John Lee Ka-chiu cited a recent public consultation by Hong Kong Exchanges and Clearing (HKEX) that showed 90 per cent of market participants, including brokers and banks, supported the new arrangement.
This reflects the reality that HKEX needs to be an all-weather exchange because global capital requires seamless markets to function. Lee said the decision was in line with standards at global stock exchanges.