Hong Kong will no longer shut its stock market during typhoons and severe weather conditions, ending a practice that has been in place for decades.

Chief Executive John Lee stated that this decision, which is greatly supported by the financial community, aligns Hong Kong with other markets, including those on the mainland of China.

Shenzhen and Shanghai Set the Precedent

"Shenzhen and Shanghai continue trading in adverse weather conditions. Hong Kong, as a global financial center, should do the same," Lee commented at a press briefing on Tuesday.

He emphasized that uninterrupted trading during harsh weather could enhance the Hong Kong Exchange's competitiveness.

Hong Kong frequently faces typhoons from June through October, and officials have cautioned about the likelihood of stronger and more erratic storms in the future, due to climate change.

Climate Change and Weather Alerts

Last year, Hong Kong authorities issued the highest weather warning, T10, for Super Typhoon Saola, marking only the 16th such alert since World War II.

Though the number of typhoons last year, 11, was below the 1961-2020 yearly average of about 15, this does not diminish the potential severity of future storms, as per data from the Hong Kong Observatory.

Economic Impact and Stock Market Performance

The stock market in Hong Kong has experienced significant downturns recently, exacerbated by China's slowing economy and suppressions of dissent in the semi-autonomous region, which was promised unique rights and freedoms upon its transfer from Britain.

The Hang Seng index dropped by 13.8 percent by the end of 2023, marking its fourth consecutive year of decline.

Since 2019, the index has seen a more than 38 percent fall, even as stock markets in the United States, Japan, and India have thrived.

In January, India's stock market surpassed Hong Kong to become the fourth largest equity market globally, according to data from the World Federation of Exchanges.