Fallen tree branches are seen scattered on a street as a couple walks in the rain amid typhoon signal No. 8, in Tseung Kwan O, Hong Kong, in the morning of Aug 19, 2020. (CALVIN NG / CHINA DAILY)

HONG KONG - Hong Kong canceled all tropical cyclone warnings after the city’s strongest storm this year moved away from the city, allowing businesses to reopen and stock trading to start.

The city’s observatory issued the advisory at 1:20 pm local time, after earlier raising it to as high as the second-gravest No. 9 signal, according to a statement on its website. Most businesses close and public transport becomes limited when the No. 8 signal or above is in place. 

Trading in the US$5.8 trillion equity market opened at the delayed time of 1:30 pm after the morning session was scrapped. The benchmark Hang Seng Index dropped as much as 0.4 percent.

At 1 pm, Tropical Storm Higos was centered about 190 km west-northwest of Hong Kong’s observatory and will probably continue to weaken, the observatory said

Under exchange rules, the morning trading session will be canceled if signal No. 8 or above is still in place at 9 am. If the signal isn’t lowered before noon, the entire day’s trading will be abandoned. 

The shutdown came as city faced its toughest social distancing restrictions so far due to a flare-up of coronavirus cases, with restaurants forced to stop dine-in services at 6 pm, public gatherings of more than two people banned and school lessons taking place online.

At 1 pm, Tropical Storm Higos was centered about 190 km west-northwest of Hong Kong’s observatory and will probably continue to weaken, the observatory said.

IN PHOTOS: HK returns to normal as Typhoon Higos weakens

Higos intensified to a severe tropical storm Tuesday evening, prompting the city's observatory to issued the No. 8 storm signal, the third-highest on its scale. The observatory upgraded the signal to No. 9 at around 1:20 am Wednesday when Higos was closest to Hong Kong.

The government said authorities received 53 reports of fallen trees and two flooding cases as of 11 am. Temporary shelters provided refuge for 103 people and seven individuals sought medical treatment in public hospitals, it said.

The Hospital Authority announced that its general out-patient clinics, specialist clinics, including physiotherapy and occupational therapy and psychiatric day hospitals, will open at 2 pm after being closed for the morning. 

All schools were required to remain closed. 

ALSO READ: HKO issues first typhoon signal No. 9 of the year

In 2018, the city raised the maximum No. 10 signal when Typhoon Mangkhut left the city with roads blocked, buildings damaged and low-lying areas flooded.

With Bloomberg inputs