As of September 23, the Hong Kong Stock Exchange (HKEX) has officially implemented its policy for continuous trading during adverse weather conditions. Furthermore, the updated trading arrangements pertaining to such conditions have been made available on the HKEX website.

Implementation of Adverse Weather Trading Arrangements Effective Today

Under the new guidelines, trading will remain operational when the Hong Kong Observatory issues a Typhoon Signal No. 8 or higher, a black rainstorm warning, or when the Hong Kong government declares an "extreme situation." In these circumstances, all products in the securities and derivatives markets will continue to be traded. Additionally, if adverse weather occurs on days designated for trading via the Stock Connect program with the Shanghai and Shenzhen stock exchanges, trading will also proceed as scheduled.

To ensure continuity, HKEX has mandated that all market participants provide trading-related services equivalent to those on regular trading days, even in adverse weather. To enhance safety, participants are encouraged to adopt remote work protocols and offer online services, while physical trading locations are advised against serving the public. Given the widespread adoption of electronic trading, it is anticipated that the absence of in-person services at banks or brokerage firms during severe weather will not significantly disrupt market activity. Moreover, the Hong Kong Association of Banks and the Hong Kong Interbank Clearing Limited have confirmed that banking services will operate as usual during adverse weather, thus fully supporting the settlement and operational needs of market participants.

A Historic Reform

In a video released by HKEX, Deputy CEO Paul Chow expressed gratitude to the Hong Kong Special Administrative Region (HKSAR) government, regulatory agencies, and all market stakeholders for their strong support of this initiative, describing it as a critical advancement for the development of Hong Kong’s markets. Moving forward, the trading of stocks and derivatives in Hong Kong will no longer be subject to delays or suspensions due to typhoons or heavy rainfall.

The implementation of this policy represents a significant departure from the longstanding tradition of halting market operations during typhoons and heavy rain, thereby marking a transformative shift aimed at enhancing Hong Kong's competitiveness as an international financial center. This initiative ensures that the market can operate continuously, irrespective of weather conditions.

This reform was achieved with the backing of the HKSAR government and regulatory bodies. Specifically, Chief Executive John Lee announced the decision to maintain trading during adverse weather conditions in June, highlighting its role in preserving market continuity and enhancing investors’ risk management capabilities. Furthermore, Lee emphasized that continuous trading during adverse weather would bolster HKEX's competitiveness and reinforce Hong Kong's dual gateway role between international and mainland markets. Analysts have noted that the ability to operate consistently, regardless of weather conditions, is a significant draw for international investors, thereby facilitating the inflow of foreign capital into the market.