Hong Kong Exchanges and Clearing (HKEx), the operator of the city's stock and futures markets, is expected to report a 10 to 20 per cent drop in net profit when it releases its results for the first half tomorrow.
Lower market turnover and fewer new listings are likely to have been the key contributors to the result.
Analyst forecasts for the bourse's first-half earnings range from HK$2.1 billion to HK$2.3 billion - down from HK$2.58 billion for last year's first half. Lower investment income and a reduction in new listings were the main reasons cited for the earnings drop.
HKEx earns revenues from trading and clearing fees paid by investors on each share transaction, listing fees paid by newcomers to the board, and fees paid by information vendors for stock information.
Brokerage house CCB International Securities expected HKEx to report a net profit of HK$2.1 billion, down 20 per cent on the same period last year, citing reduced trading and clearing fees arising from lower market turnover during the first half of the year.
Average daily turnover stood at only HK$56.5 billion, down 20 per cent on last year's first half, and CCB forecast that revenue from securities traded on the cash market would accordingly fall by the same margin to HK$818 million.