Net profit at the operator of the world’s fourth-largest stock market rose 9 per cent to HK$3.16 billion (US$405 million), or HK$2.49 per share, in the three months ended June, in line with market estimates. Sales increased 8 per cent to HK$5.4 billion during the quarter, also meeting analysts’ forecasts.
HKEX shares dipped 0.4 per cent to HK$231 at the noon trading pause in Hong Kong before the exchange reported its earnings. The stock has fallen by 14 per cent this year.
“HKEX had a robust first half, with the second quarter seeing an upswing in market momentum and trading activity, driving record second quarter revenue and other income and profit,” Chan said in a statement. “Fundraising activity remained resilient and has shown signs of warming, with the second quarter seeing a 50 per cent quarter-on-quarter increase in new listings and a 79 per cent increase in IPO funds raised.”
Increasing IPO activity led to more fees for the exchange operator, helping HKEX raise its fee income by 7 per cent during the quarter. More shares changed hands in the second quarter, as the average daily trading turnover rose 18 per cent from last year to HK$102.7 billion. This was a gain of 22 per cent from the HK$99.4 billion of transactions in the first three months of the year.
Hong Kong’s capital market, which had wallowed in a bear market for three years during the Covid-19 pandemic, spiked in mid-April after China unveiled five stimulus measures, including supporting qualified industry leaders to raise funds in Hong Kong, and easing the eligibility criteria for exchange-traded fund products under its Connect scheme.