Hurricane trading: HK orders exchanges to remain open during severe weather

There was broad support for allowing trade in extreme weather and following other cities, Chief Executive John Lee said at his weekly press conference. There will be enough time in the transition period, he said.

The city has been a leader among major financial centers in having rules to close markets during bad weather. This practice appeared to be old fashioned after years of the epidemic showed that the markets could function as most of the workers were confined at home.

Usually five to eight storms hit the city every year, but not all of them bring traffic and schools to a standstill.

The local government has taken the change seriously and urged cooperation between the stock exchange, stock regulators and the central bank as many small traders have voiced their opposition due to the cost and difficulty of staying open.

“I believe it is a positive development for the Hong Kong market by removing a source of uncertainty about market access and capital,” said Redmond Wong, chief China strategist at Saxo Markets.

The trading halt also drew criticism because it stopped the flow through Stock Connect which links the Shanghai and Shenzhen markets. An average of 125 billion yuan ($17.2 billion) per day was exchanged northbound and HK$56 billion ($7.2 billion) southbound on the link in May.