By Dave Sebastian

Hong Kong's stock market, notorious for shutting down on typhoon days, is moving toward allowing trades in bad weather.

Hong Kong Exchanges & Clearing, the exchange operator, said on Thursday that it is taking feedback from the public until Jan. 26 on the proposal to let securities and derivatives trades continue as usual during severe weather conditions. Unlike other major exchanges, storms and heavy rains have closed down the Hong Kong market.

Since 2018, extreme weather conditions like typhoons and rainstorms have caused 11 instances of market-wide trading suspensions ranging from several hours to a full trading day, according to the operator. Four of those happened this year.

The plan comes as Hong Kong is trying to revamp its slumping trading volumes, with city officials having formed a task force aimed at improving stock-market liquidity.

The operator said it will consider testing sessions to prepare for severe-weather trading. The exchange's trading, clearing, settlement and market-data systems will be available through remote networks during stormy days, it added.

Under the proposal, the earliest the stormy-day trading can occur is July 2024, which is six months after the consultation's close.

Write to Dave Sebastian at

(END) Dow Jones Newswires

11-30-23 0636ET