Hong Kong’s exchange is “closely monitoring” super typhoon Ragasa as it moves closer to the Asian financial center, posing a potential test for the city’s push to keep markets open during severe weather.
Hong Kong Exchanges & Clearing Ltd is in close communication with regulators and market participants, according to a spokesperson.
“The safety of our employees, market participants and the investing public remains our top consideration, and we will provide further updates as required,” the spokesperson said in an emailed statement.
The landfall of Ragasa could pose the biggest test yet for new rules implemented last year to keep trading, settlement and clearing open during typhoons. The new framework stipulates that trading could still be closed under an “exceptional situation.”
The city hoisted the first precautionary typhoon signal early on Monday and expects the weather to deteriorate rapidly. Hong Kong International Airport will halt flights starting Tuesday. Flag carrier Cathay Pacific Airways Ltd said all flights arriving and departing from Hong Kong will be canceled from 6 pm local time on Sept 23 through 6 am on Sept 25 as Ragasa bears down, according to a statement on Monday.
Separately, a fixed income and currencies forum co-hosted by the Securities and Futures Commission and the Hong Kong Monetary Authority (HKMA) scheduled for Thursday will now be conducted virtually due to the storm, a spokesperson for the HKMA said in an emailed statement. The forum was due to unveil a roadmap to develop the fixed income and currency markets, the city’s Chief Executive John Lee said last week in his Policy Address.
See also: Hong Kong bankers pack luxury hotels near offices for typhoon trading
Ragasa is packing sustained winds of 143 miles (230 kilometres) per hour near its core, equivalent to a Category 4 hurricane, according to the Hong Kong Observatory. It was located in the Luzon Strait, roughly 1,100 kilometres southeast of Hong Kong as of Monday morning.
