The move will help improve market turnover and bolster the taxes the government collects from stamp duty on the trading of shares, according to stockbrokers.
“The consultation on the Severe Weather Trading proposal concluded earlier this year, and we are pleased to have received broad support for its implementation, which will further enhance Hong Kong’s competitiveness as an international financial centre,” HKEX said in a statement after the Post asked about the timeline on Friday.
“We are actively working with the [government], the SFC, and the HKMA to finalise the model and target to publish the consultation conclusions by mid-year.”
The plan comes as Hong Kong braces for five to eight typhoons to come within 500km (311 miles) this year, according to a projection in March by Hong Kong Observatory director Chan Pak-wai.
Since 2018, tropical cyclones and severe rainstorms have forced the market to shut down 11 times. Last year alone, HKEX has had to postpone trading or shut the market for the whole day during typhoons Talim, Saola and Koinu, as well as some black rainstorms.
While some small brokers are worried about the change, the majority of market participants showed their support in response to a two-month consultation that ended on January 26, according to the source.
“It is important for Hong Kong to catch up with international and mainland practices,” said lawmaker Robert Lee Wai-wang, the CEO of brokerage Grand Capital Holdings.
“As stock and derivatives trading has turned digital, many overseas and mainland markets continue to trade even amid bad weather.
“It is no good when international or mainland investors can not trade in Hong Kong amid typhoons or black rain.”