Andrew Wood reports from Hong Kong on the typhoon's impact
All ferry services and some bus services have been cancelled and trains are operating at a reduced frequency.
Few people were on the streets, with 100km/h (60mph) winds shredding umbrellas and making it hard to walk.
Local radio reported that two people, including a taxi driver, were injured when scaffolding collapsed onto a taxi.
And a large cargo barge crashed into the seafront after slipping its moorings, television footage showed. About 50 people had to be evacuated from a nearby block of flats.
Some flights have been delayed.
Lynn Chan, a lawyer who works in the city's central business district, said she struggled through the wind and rain only to find her office was closed.
"I am the only person here," she said.
"I guess I should have listened to the news before I set out."
At noon local time (04:00 GMT), Typhoon Nesat was 370km (230 miles) southwest of Hong Kong and was moving towards China's Hainan Island.
At least 18 people were killed when the typhoon swept through the Philippines earlier this week.
The Hong Kong Stock Exchange has shut for the day, with the Hong Kong Observatory saying the number eight storm signal would be hoisted for most of Thursday.
Government offices and courts have also closed, delaying the announcement of a landmark ruling on a closely watched immigration case.
The High Court was due to rule on whether foreign domestic helpers were eligible to apply for permanent residency in the city.
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