In an effort to boost trading, the Hong Kong Exchanges and Clearing has proposed new rules to keep markets open during severe weather conditions.
HKEX has proposed to maintain trading operations during severe weather conditions like typhoons, according to a statement.
This includes the trading of new listings, derivatives as well as securities from the cross-border channels with Shanghai and Shenzhen. The exchange said it also agreed with the banking industry that relevant services would be made available to allow trading and clearing activities, alongside money transfers.
HKEX CEO Nicolas Aguzin had previously expressed disappointment in weather-related closures in 2021, especially due to the fact that many in the sector had already begun to be accustomed to remote working conditions triggered by the pandemic.
Unfavorable Climate
Compared to other global financial hubs, Hong Kong has a particularly poor climate in certain parts of the year. On average, an estimated six typhoons annually approach within 500 kilometers of the city.
According to HKEX, it discourages the provision of services via physical outlets during severe weather conditions.
The exchange will accept feedback on its proposals until January 26. The new plans will take six months to implement and will be ready around July in time for the next typhoon season.
