After the typhoon mangosteen hit Hong Kong on Sunday, it gradually moved away, but the market was still in trouble on Monday. The government was questioned that it had not announced the suspension of the school and announced that the work would be suspended, so that there would be time to repair the road and divert traffic. The next question, however, is whether the trading activities on the financial markets, such as the Hong Kong stock market, also have to be suspended as soon as the suspension is announced.
A spokesman for the Hong Kong Stock Exchange (00388) said the Hong Kong Stock Exchange had drawn up corresponding contingency plans for various adverse weather conditions that have been effective for many years. Moreover, the exchange has very flexible arrangements for employees to go to work in bad weather, full understanding of the difficulties that employees may encounter.
For information purposes, paragraph 571 of chapter 5 of the stock exchange rules mentions the suspension of the market under the warning no. 8 or higher for typhoon or black rainstorms. The paragraphs & # 39; s 572 and 573 of the rules refer to transactions such as those by the Exchange. are expected. Where the system may be affected by typhoons, heavy rainfall, earthquakes, natural disasters, power outages, communication interruptions, computer failures, wars, etc., the Exchange Board may, in its sole discretion, take appropriate measures, including extension of trading hours to compensate for losses or shorten the transaction. Time period. If it is decided to shorten the exchange time, the last closing price accepted in the system is the closing price of the day. Under no circumstances is the Exchange liable for damage caused by an emergency.
For other financial institutions, JP Morgan Chase said in response to the investigation that the safety of the company's staff and customer interests are the primary considerations and will comply with the requirements of Hong Kong's laws, but it is not possible to comment. about individual assumptions. A UBS spokesperson also said that it is impossible to comment on the hypothetical situation, but the company has always considered the safety of employees as the biggest consideration.
The Citi spokesperson also said that the bank first considered the safety of its staff, but also that the traffic caused by the typhoon mangroves was uncomfortable. Therefore, the flexibility of the bank allowed employees to work from home or wait for traffic to be restored before going to the office building, when the employees were at work or during the event. In the event of a safety problem during the typhoon, the bank encouraged employees. work closely with their superiors for special arrangements.
Xu Caibin, chief executive of Yao Cai Securities (01428), stressed that the safety of employees is the first priority, but if there is only a typhoon with number 3 or lower and the government announces a suspension, the company will deal with the individual conditions of employees, such as living in remote areas. Those who are blocked by traffic are not considered too late. "If the situation allows you to go to work, you should go to work as much as possible, always hanging only the number 3 wave and the branch is already open."
A spokesman for Deloitte & Touche said that the bank has a response plan for dealing with crises, including natural disasters, and always takes the safety of its employees first. This morning it also issued a circular to all employees in Hong Kong, Macao, Shenzhen and Guangzhou, indicating that they have received again. In the coming days, employees can ask the department heads for flexible arrangements to help the colleagues involved to deal with the inconvenience caused by the typhoon in a timely manner.
Some people in the financial sector said that even if Hong Kong ceases to work, it still has to serve customers outside of Hong Kong, so there is no possibility of a complete shutdown. Another investment bank employee said that traders still have to return to the office to go to work, even if there is a spare room in the middle of the period, so it is not considered feasible to stop the work.