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HKEX profit drops 38pc on lower turnover, chairman warns of challenging outlook

Hong Kong-Shenzhen Stock Connect scheme will help boost turnover, analysts say

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HKEX chairman Chow Chung-kong: “The group will remain cautious and is committed to robust and prudent risk management for the maintenance of orderly markets in Hong Kong and London.” Photo: Dickson Lee
Enoch Yiu
Hong Kong Exchanges and Clearing, the operator of the stock and futures markets in Hong Kong, has reported a better-than-expected decline in profit for the second quarter, as stricter cost controls helped offset the negative impact of the declining stock market.

The HKEX, which also owns the London Metal Exchange (LME), said its net profit fell 38 per cent to HK$1.56 billion in the quarter from April to June.

The exchange did not provide the second quarter result in its first half statement. The figure is deducted from the first quarter profit from the first half figure.

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Analysts polled by Thomson Reuters were expecting net income of HK$1.35 billion in the second quarter, down 46 per cent on HK$2.52 billion in the same quarter a year earlier.

HKEX said in May it would slow down “less critical projects” and hire fewer staff after reporting a net profit decline of 9 per cent in the first quarter to a net profit at HK$1.43 billion.

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In the first half year, the HKEX reported net profit at HK$2.99 billion, down 27 per cent from HK$4.095 billion a year earlier. Earning per share is HK$2.47, down 29 per cent from HK$3.49 a year earlier.

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