Hong Kong closes bourse as tropical storm edges closer to city

Hong Kong closed its $4-trillion stock market early as severe tropical storm Nalgae moved closer on a day when the city hosted a top-level summit for global bankers.

Hong Kong Exchanges & Clearing scrapped afternoon trading of stocks and derivatives after the government raised the number 8 storm signal — its third-highest warning. The halt came as the Hang Seng index had its best two-day gain in seven months. Schools were also suspended and workers were advised to go home.

Being affected by a tropical cyclone so late in the year is a rarity for Hong Kong, which had only raised the number 8 signal a handful of times in November since 1946. The storm approached as more than 200 financiers gathered in the Four Seasons hotel ballroom for a summit designed to revive Hong Kong’s status as an international finance hub. The conference, attended by Goldman Sachs Group’s David Solomon and Morgan Stanley’s James Gorman, was not affected.

Nalgae, which means “wings” in Korean, will edge closer to Hong Kong on Wednesday evening than previously forecast to skirt within 100km of the city, the local observatory said. At 4pm local time, Nalgae was centred about 140km southeast of the city and was forecast to move northwest at about 10km/h, it said, adding that the number 8 signal will remain in force before 6pm.

The summit continues on Thursday, when top fund managers including Carlyle Group founder Bill Conway and Man Group CEO Luke Ellis take part in a forum at the main hall at the stock exchange. There are two panels, entitled “Creating Value Through Uncertainties” and “Managing Through Volatile Markets”.

The Hang Seng index closed 2.4% higher, adding to Tuesday’s 5.2% gain, which was triggered by unverified talk of a shift in Xi Jinping’s Covid-zero policy.

Hong Kong is typically hit by about six typhoons a year, usually from June to October, but only a fraction of those result in market or school closures. The last time was in late August, when tropical storm Ma-on hit the city.

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