The leader of Hong Kong, John Lee, has announced plans to end the practice of closing the stock market during typhoons and extreme weather. This change, according to Lee, will strengthen the competitiveness of the Asian financial hub. He stated that this decision has been widely supported by the financial sector and will bring Hong Kong’s market in line with other international markets, such as mainland China.
Lee pointed out that cities like Shenzhen and Shanghai already continue trading in bad weather conditions, and Hong Kong should do the same as an international financial center. This move to allow non-stop trading in inclement weather is seen as a way to boost the competitiveness of the Hong Kong Exchange.
Hong Kong typically experiences typhoons between June and October, and authorities have warned residents to expect more powerful and unpredictable storms in the future due to climate change. Despite facing challenges from severe weather conditions, Hong Kong issued its highest weather alert, T10, for Super Typhoon Saola only 16 times since World War II.
In recent years, Hong Kong’s stock market has struggled due to slowing growth in China and crackdowns on dissent in the semi-autonomous territory. The benchmark Hang Seng index ended 2023 with a 13.8 percent decrease, marking the fourth consecutive year of decline. This decline has led to a drop of over 38 percent since 2019, while other global markets have seen significant growth.
In January, India’s stock market surpassed Hong Kong’s to become the fourth-largest equity market globally. This shift reflects the challenges faced by Hong Kong’s market in recent years. The decision to allow trading during extreme weather is seen as a step towards enhancing the competitiveness and resilience of Hong Kong’s financial sector.
John Lee believes that this change will strengthen Hong Kong’s position as an international financial hub by making it more competitive with other markets such as mainland China. The move is expected to help boost economic growth in Asia and attract more foreign investment into the region.
The move comes after several years of slow growth in China’s economy and crackdowns on dissent in Hong Kong’s semi-autonomous territory. However, despite these challenges, Lee remains optimistic about the future of Asia’s leading financial hub.
“We believe this decision will bring us closer together with our neighboring countries,” said Lee. “By allowing our financial markets to operate during extreme weather conditions like those experienced elsewhere in Asia, we can showcase our resilience and adaptability.”
