According to a Bloomberg report, Hong Kong has plans to continue trading in the market regardless of the weather conditions.
People close to the matter claim that the plans could come to fruition as soon as September. This would mean that Hong Kong’s $4.2 trillion market will continue running like clockwork even when it issues a “black rainstorm warning”.
The Hong Kong Exchange usually stops trading whenever there’s a typhoon or severe weather conditions.
The best-case scenario is that the Hong Kong Exchange will announce the proposed framework in the next few weeks. In the meantime, they will finalize the plans. Thus, the way it’s structured right now could still change.
Regardless of the outcome, traders will celebrate this good news. It helps “strengthen Hong Kong’s position as a two-way gateway between the international and Mainland markets,” as per a Bloomberg government spokesperson.
The same report reveals that government officials have long lobbied for this plan.
At present, if this is implemented in September, this would mean that the pilot run for the Hong Kong exchange will take place during typhoon season.
Typhoon season in Hong Kong and surrounding countries usually lasts from April through November but the worst storms usually occur in August and September.