FX.co ★ HKSE considers ending trading suspension rule during typhoons

The Hong Kong Stock Exchange is considering the possibility of abolishing the 1950s rule regarding the suspension of trading during raging typhoons and storms. Investors have requested this change as trading carries inherent risks, and unexpected interruptions in high-stakes operations are undesirable. This proposal will be under consideration until January 26. For now, the exchange will adhere to the existing rule. If the Hong Kong Observatory issues a signal level 8 warning, the exchange will be obliged to postpone or even completely halt trading. Currently, Hong Kong is a leading international financial center, largely due to an increasing number of investors from other countries seeking to expand their operations there. Interestingly, many of these investors come from mainland China. If the exchange decides to lift the ban on trading during storms, Hong Kong's competitiveness as an international financial center will be further enhanced. Hong Kong's location places it in a zone prone to various tropical cyclones and heavy rains, which often paralyze the city several times a year. For instance, this summer, severe tropical storm Talim approached the city, leading authorities to restrict land-based public transportation and cancel school classes. Since 2018, the Hong Kong Stock Exchange has had to suspend trading 11 times due to adverse weather conditions.