The Hong Kong stock and futures markets are implementing a new arrangement that will allow trading to continue even during severe weather conditions. Currently, trading is halted if the Hong Kong Observatory issues a No 8 typhoon signal or a black rainstorm warning before the market opens at 9:30 am. Under the new system, investors can trade Hong Kong stocks and derivatives, as well as buy mainland A shares through the Stock Connect schemes.
Investors, stockbrokers, and the government stand to benefit from this change, with increased trading opportunities and revenue collection through fees and stamp duties. The stock market turnover is expected to remain stable even during severe weather, based on overseas experience.
Investors can utilize online trading platforms and digital banking services during storms, as physical bank branches will be closed. Brokers are required to ensure their systems support remote trading effectively, and the exchange will provide a grace period for small brokers to upgrade their systems.
Investors should communicate with their banks or brokers regarding trading and settlement services during severe weather and be prepared to use digital platforms. Overall, the market is gearing up to remain operational even in challenging conditions, ensuring minimal disruption to trading activities.