Stock rises as exchange rides trading boom driven by mainland share sales
Net profit at Hong Kong Exchanges and Clearing, which operates Asia's second-largest stock market, soared 94 per cent to a record HK$1.1 billion in the first six months of this year, thanks to a surge in trading driven by a flood of share sales by mainland companies.
The better than expected results unveiled yesterday helped drive HKEx's share price up 3.24 per cent to HK$54.10, still well below the record high of HK$64.80 reached on May 12. The shares have gained more than 68 per cent this year.
The higher earnings mirrored an equally dramatic gain in average daily trading volume, which leapt 93 per cent in the first half to HK$32.6 billion from HK$16.9 billion in the same period last year.
Average daily turnover of derivatives contracts jumped 56 per cent to 97,471 and options rose 152 per cent to 63,411 from levels a year ago.
This trading surge pushed HKEx's trading fee income up 76 per cent to HK$621.83 million, while clearing fees grew 84 per cent to HK$316.65 million.