The Observatory said on Sunday it would assess the need to issue the No. 8 typhoon signal sometime after midnight as tropical storm Talim intensifies and moves closer to Hong Kong.

"Depending on the changes in Talim's intensity and the distance between the associated gales and the Pearl River Estuary, the Observatory will assess the need of issuing the Gale or Storm Signal No. 8 midnight to tomorrow morning," it said in a statement.

The Strong Wing Signal No. 3 is now in force.

Talim is expected to be at its closest point on Monday morning, passing within 300 kilometres south of Hong Kong.

Flooding may occur in low-lying coastal areas in the morning as Talim may bring a storm surge in combination with the spring tide, the Observatory said.

The Observatory also said the public should stay away from the coast and avoid water sports.

Due to the approaching storm, the Ngong Ping 360 cable car service will be closed for today. Hong Kong Disneyland says it's operating at a reduced capacity as outdoor rides are closed.

Earlier, the Hong Kong Tourism Board announced that music shows at the harbour and a fireworks version of the Symphony of Lights had been cancelled. They were part of the Harbour Chill Carnival.