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Hong Kong Bourse to Keep Trading Through Severe Weather

Hong Kong's stock exchange will implement new rules in September to continue trading through inclement weather. Peter PARKS / AFP
Hong Kong's stock exchange will implement new rules in September to continue trading through inclement weather. Peter PARKS / AFP
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Hong Kong Bourse to Keep Trading Through Severe Weather

Hong Kong's stock exchange will implement new rules in September to continue trading through inclement weather. Peter PARKS / AFP
Hong Kong's stock exchange will implement new rules in September to continue trading through inclement weather. Peter PARKS / AFP

Hong Kong's stock exchange will continue trading through typhoons and heavy storms from September, the city's leader announced Tuesday.
The bourse in the international finance hub typically suspends trading when a strong typhoon signal or "black rainstorm warning" is hoisted, meaning several days are lost each year, said AFP.
Southern China is accustomed to seeing seasonal typhoons in the latter half of the year, but climate change has made tropical storms more unpredictable while increasing their intensity.
On Tuesday, John Lee said that from September 23 investors can trade as usual "when the typhoon signal number eight or above is hoisted in Hong Kong, or even during a black rainstorm warning".
"Shenzhen and Shanghai are now trading in bad weather. There is no reason why Hong Kong, as an international financial center, should not follow suit," he added.
"Non-stop trading in inclement weather can strengthen the competitiveness of the Hong Kong Exchange," he said, adding that the September timeframe would give the industry time to prepare.
Katerine Kou, chair of Hong Kong Securities Association, said discussion on the move had been ongoing for a year given the city's role as "a super connector between the Chinese market and the global market".
"I think Hong Kong as a whole, including the exchange, have been trying to score more points, and to enhance its global competitiveness," Kou told AFP. "This is definitely a score-winning move."
Last year, the city raised its highest T10 warning -- for Typhoon Saola -- for only the 16th time since World War II.
A week after Saola, Hong Kong was flooded by the heaviest rainfall in nearly 140 years, leaving its streets inundated and subway stations waterlogged.
According to a consultation paper from the city's bourse proposing trading continue through bad weather, the exchange was impacted by severe weather four times in 2023, "including three full-day market suspensions".
"During such trading suspensions, investors are unable to manage their portfolios and are exposed to potential market risks, especially in scenarios where the markets of their underlying positions are open," it said.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."