The reason is... the Hong Kong Stock Exchange suspended trading. Why is the Hong Kong Stock Exchange closed due to the typhoon
The market of Hong Kong stock once again is closed again.
Just now, according to the latest news from the Hong Kong Observatory, the No. 8 gale or storm signal was maintained at least until 16:00 due to the impact of Typhoon Tai Li. According to the arrangements made by the Hong Kong Stock Exchange under adverse weather conditions, trading will be suspended throughout the day today, including northbound trading of the Shanghai Shenzhen Hong Kong Stock Connect and derivatives markets.
Perhaps many mainland Chinese people cannot help but wonder: why do Hong Kong stocks have to delay or even close on typhoon days?
Typhoon strikes, Hong Kong Stock Exchange suspends trading
According to the arrangement, if the typhoon signal/extreme situation warning on the 8th or above still takes effect at 9am, trading will be suspended in the morning.
If the typhoon signal/extreme situation warning on the 8th or above is cancelled before 12:00 noon, trading of products in the Hong Kong Stock Exchange's securities and derivatives market will resume in the afternoon, and trading will begin approximately two hours after the typhoon signal/extreme situation warning is lifted at midnight or 30 o'clock.
If the typhoon signal/extreme situation warning on the 8th or above still takes effect at 12:00 noon, the securities and derivatives market will suspend trading for the entire day.
The Hong Kong Stock Exchange stated that it will release the announcement at an appropriate time.
Just now, according to the latest news from the Hong Kong Observatory, the No. 8 gale or storm signal was maintained at least until 16:00 due to the impact of Typhoon Tai Li. According to the arrangements made by the Hong Kong Stock Exchange under adverse weather conditions, trading will be suspended throughout the day today, including northbound trading of the Shanghai Shenzhen Hong Kong Stock Connect and derivative product markets.
Apart from Typhoon Tai Li, Hong Kong stocks have been closed several times in history due to severe weather conditions. For example, when Typhoon "Haigao" in 2020, Typhoon "Wipha" in 2019, and Typhoon "Miao Bai" in 2017 made landfall in Hong Kong, the Hong Kong Stock Exchange closed for one or half a day.
![The reason is... the Hong Kong Stock Exchange suspended trading. Why is the Hong Kong Stock Exchange closed due to the typhoon](https://a5qu.com/upload/images/89e4a7c56fac94b8b8ee5bfd315a61cf.jpg)
In contrast, A-shares seem to have never been affected by bad weather and closed. So, why are Hong Kong stocks so stubborn and spoiled?
Securities Times reporters learned from several securities firms in Hong Kong that although Hong Kong is an international financial center, its stock trading system is not as developed as mainland China. In fact, many older generation investors rely on phone calls to place orders. Once there is a power outage or communication signal problem, it will cause losses to investors and violate market fairness.
In addition, under adverse weather conditions, it is difficult to ensure the safety of securities practitioners and investors on the way to and from exchanges. Therefore, the market should be closed to prevent risks. Throughout the world, there have been precedents of Hong Kong, Taiwan, and US stocks being closed due to abnormal weather, especially typhoons.
The Hong Kong Stock Exchange proposes to allow normal trading during typhoons
On May 11th this year, the Hong Kong Stock Exchange prepared to propose continuing trading during the typhoon, abandoning the traditional practice of suspending trading in the event of a typhoon for many years.
A working group composed of the Hong Kong Stock Exchange, the Hong Kong Securities Regulatory Commission and the Hong Kong Monetary Authority is drafting a plan to allow normal trading during the typhoon rainstorm, and following up the relevant initiatives proposed by the government in the financial budget in February.
In February 2023, the Financial Secretary of Hong Kong, Chan Mo po, stated in a budget speech that exchange officials were exploring how to maintain the normal operation of the Hong Kong stock market in adverse weather conditions. Given that Hong Kong is frequently hit by tropical cyclones, trading will be suspended approximately several times a year due to typhoons.
"This assessment is still in its early stages, and regardless of the final plan, it needs to be led by the Hong Kong government and regulatory agencies, with the cooperation of all stakeholders and market participants." A spokesperson for the Hong Kong Stock Exchange stated in a statement, "Ensuring the safety of employees and customers remains an important consideration for us. If necessary, we will release further progress to the market at an appropriate time."
A spokesperson for the Hong Kong Securities and Futures Commission stated that "the initiative to allow normal trading under adverse weather conditions is overall beneficial to Hong Kong," and the Hong Kong Stock Exchange is evaluating the arrangements.