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HK Brokers Brace for First Typhoon Trading Day as Storm Hits

Signage for Hong Kong Exchanges and Clearing Ltd. (HKEx) at the Hong Kong Stock Exchange in Hong, China, on Tuesday, Sep. 17, 2024. Photographer: Lam Yik/Bloomberg (Lam Yik/Bloomberg)

(Bloomberg) -- For the first time on Thursday, Hong Kong’s stock exchange will keep its markets open through severe weather. 

The Hong Kong Observatory issued a so-called Typhoon Signal 8, the third highest, at 11:10 p.m. local time Wednesday as tropical storm Toraji is edging closer to the Pearl River Estuary and local winds will strengthen. Authorities will consider lowering the signal to No. 3 between 10 a.m. and noon, it said in a statement early Thursday.

“All of HKEX’s markets, including the after-hours trading session, will remain fully operational,” Hong Kong Exchanges & Clearing Ltd. said in a statement late Wednesday.

This will mark an end to the bourse’s decades-old tradition of shutting with storms of signal No. 8 or above that had made the city an outlier among major financial hubs. The practice had became increasingly questioned during the pandemic, when widespread work-from-home setups showed little hindrance to trading.  

The last time Hong Kong halted its market due to inclement weather was when Super Typhoon Yagi skirted the city in early September. HKEX started the new trading arrangement on Sept. 23.

--With assistance from Olivia Tam and Alfred Liu.

(Updates with latest statement from the Observatory on lowering the typhoon signal in late morning.)

©2024 Bloomberg L.P.