HKEX to seek views on trading during storms

Hong Kong Exchanges and Clearing (0388) may launch a public consultation about allowing stock trading on days with extreme weather as soon as this quarter.

A working group led by HKEX proposed that although banks should remain closed and not accept physical checks during adverse weather, they could still process and settle ones received the previous day, Sing Tao Daily reported, citing people familiar with the matter.

It comes as some small brokerages said many clients prefer paper cheques, but banks can't provide settlement services as they close when No 8 typhoon signal or higher is hoisted.

Another suggestion is that brokerages should use electronic payment for transactions, such as e-cheques and the faster payment system.

HKEX might start the public consultation on the proposals before the year end, and the banks are estimated to be able to provide cheque settlement service during typhoon days in the second quarter of next year.