
The Hong Kong Stock Exchange (HKEX) will implement new arrangements on September 23. Under adverse weather conditions, the Hong Kong securities and derivatives markets will continue trading, and the Stock Connect, holiday trading for derivatives, and post-market trading sessions will also proceed as normal.
According to statistics from HKEX, since 2018, adverse weather has caused the Hong Kong stock market to close 11 times. In 2023 alone, there have been four closures, three of which were full-day suspensions.
If the average daily trading volume of Hong Kong stocks is about HK$120 billion, a single day of market closure would result in a loss of about HK$6.78 million in revenue. This data does not include futures trading and other income.
1.Original Arrangements of HKEX Under Adverse Weather Conditions
According to the trading hours & severe weather arrangements of the HKES (00388) (applicable to typhoon signal No. 8 or above and black rain):
If a signal is issued in the afternoon, trading will stop 15 minutes later; if trading has not resumed before market close, there will be no closing auction session that day.
From 07:00 to 09:00, the pre-market session will be canceled & trading will resume 2 hours later.
From 09:00 to 12:00 bidding & early trading are cancelled. Trading continues as usual at 13:00.
Lifted between 11:00 & 11:30, trading will start at 14:00.
Lifted between 11:30 & 12:00, trading will start at 14:30.
Lifted after 12:00, the Hong Kong stock market will be closed for the entire day.
2.Reasons for HKEX's Market Closure Under Adverse Weather
Some trading still relies on telephone orders, which require staff on duty to handle transactions.
On typhoon days when no one is at work, telephone orders cannot be processed. To ensure the fairness and safety of trading, HKEX has decided to suspend trading during adverse weather conditions.
3.Conclusion
To further enhance Hong Kong's competitiveness as an international financial center, the new arrangements by HKEX during typhoons and adverse weather reflect its timely decision-making. This not only addresses the issue of market closures caused by manual order trading but also ensures market continuity, reduces economic losses from suspensions, and strengthens Hong Kong's position in the global financial market. We will publish more interesting articles in the future, so stay tuned.
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