Starting from September 23, the Hong Kong Stock Exchange will implement the “Bad Weather Suspension of Trading” arrangement. Acting Secretary for Financial Services and the Treasury, Christopher Hui, mentioned in an interview with local media that after announcing the reform plan, there will be a three-month preparation period for the industry. In the event that securities firms encounter settlement difficulties, eligible firms will have their settlement responsibilities fulfilled by the Stock Exchange. The criteria for assistance include assessing the need for help and reasons for the inability to settle. Detailed support measures will be announced in early July.
Hui stated that major global markets do not suspend trading due to bad weather, and if Hong Kong cannot facilitate stock trading in adverse weather conditions, it may lead to asymmetric situations and affect investor risks. These measures are designed to align with international markets.
He pointed out that in a previous consultation by the Stock Exchange, 90% of respondents supported the plan, while the remainder did not completely oppose but raised technical concerns. These included issues related to remote or work-from-home arrangements. Currently, many financial institutions use such technological solutions, and the Stock Exchange will assist them in procuring remote working technologies and liaising with suppliers. If securities firms are unable to work remotely, they must discuss preparation arrangements with employees in accordance with the Labour Department’s guidelines for adverse weather and extreme situations.