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John Lee, the city leader of Hong Kong, has announced that the stock market in the region will no longer close during extreme weather conditions. This change aligns with other markets, such as mainland China, and is supported by the financial sector. The decision comes as Hong Kong prepares for more powerful and unpredictable storms due to climate change.
Lee emphasized that cities like Shenzhen and Shanghai continue to trade during adverse weather conditions. As an international financial center, Hong Kong should do the same to enhance its competitiveness. This move will help bolster Hong Kong’s position as a key financial hub in Asia.
Despite facing fewer typhoons in recent years, Hong Kong has experienced economic challenges, with the stock market suffering significant losses amid slowing growth in China and crackdowns on dissent. The Hang Seng index ended 2023 with a 13.8 percent decrease, marking its fourth consecutive year of decline.
The benchmark index has fallen by over 38 percent since 2019 while other global markets have seen significant growth. In fact, India’s stock market surpassed Hong Kong in January to become the fourth-largest equity market globally according to the World Federation of Exchanges. However, Lee believes that allowing continuous trading during inclement weather will boost Hong Kong’s position as a leading financial center in Asia.
This decision is significant for several reasons. Firstly, it shows that Hong Kong is committed to remaining competitive in the global finance industry despite facing challenges such as slower growth in China and political unrest. Secondly, it demonstrates that the city is willing to adapt its practices to better align with other markets and remain relevant in today’s fast-changing business environment.
Overall, this move by John Lee could have a positive impact on Hong Kong’s economy and financial industry. It shows that even in challenging times, leaders are willing to make tough decisions that benefit their communities and businesses alike.
