One of the world’s greatest stock market has an unique policy for bad weather condition– it stops trade whenever authorities provide a tropical cyclone caution of Signal 8, the 3rd greatest level, or greater.
Nicolas Aguzin, the CEO of Hong Kong Exchanges and Clearing, stated the bourse is “constantly” checking out examining this procedure that stops sell its $3.9 trillion stock exchange along with other structural concerns that financiers deal with in Hong Kong.
When asked when financiers can anticipate to see a modification in this policy, Aguzin informed CNBC’s Emily Tan that assessments are happening. Aguzin made his remarks simply hours prior to another tropical storm caution set off an early end to Wednesday’s trading session.
The Hong Kong Observatory has actually provided a Signal 8 or greater an overall of 6 times in 2022, two times in 2021, and 4 times in 2020.
“We’re always looking at how we can enhance the microstructure of our markets, to make sure that investors can participate all the time,” Aguzin stated. “You can be assured that we’re always looking into this.”
What we’re concentrating on is the resiliency of Hong Kong– Hong Kong has actually shown time and time once again that it can return.
He included that trading policies have actually moved in the past, such as modifications to vacation trading. The bourse released its derivatives vacation trading service in May after factor to consider of “market feedback and market readiness.”
“We have to balance the interest of the people, the security of the people, safety of the people,” Aguzin stated, including that the bourse is “always evaluating” how to make Hong Kong a leading worldwide market.
Shortly following the interview, the Hong Kong Stock Exchange suspended trade after the H.K. Observatory provided a Tropical Cyclone Warning SignalNo 8.
“There will be no Closing Auction Session for that trading day if trading has not been resumed by 3:45 pm (for full day trading) or 11:45 am (for half day trading),” the notification states. HKEX verified there will not be extended trading Wednesday.
Aguzin stated he thinks in Hong Kong’s resiliency versus lots of difficulties, consisting of the current tropical storm striking the city, worldwide inflation, along with geopolitical issues.
“What we’re focusing on is the resiliency of Hong Kong – Hong Kong has proven time and time again that it can come back.”Hong Kong has actually shown time and time once again that it can return,” he said. ” I do think in the long-lasting strength of our market and the unique basics that Hong Kong has as a global monetary center.”
Revised listing guidelines
The Hong Kong Stock Exchange in a current assessment paper detailed propositions for a brand-new listing program for unique innovation business which would alleviate requirements for listing in the city.
The modifications consist of a lower limit of profits for commercialized companies in particular sectors, consisting of next-generation infotech and sophisticated products. Companies would require to reach an assessment of $250 million Hong Kong dollars, lower than the present requirement of HK$500 million.
When asked if the bourse is focusing on amount over quality in its quote to draw in more listings to the city, Aguzin stated he sees possible in buying these business.
“What we’re attempting to do is attend to premium business that have fantastic items,” Aguzin said. “Their capital are going to be even more in the future, however their chances for financiers are exceptional.”
Aguzin included that the just recently proposed procedures are anticipated to be strengthened and officially revealed “ideally not too far from now.”
