HKEX beats analysts’ estimates as it posts 28 per cent jump in first-quarter profit on rising investment income, strong derivatives trading
- HKEX’s strong profit growth in the first quarter is a continuation of a recovery following the bourse operator’s record fourth-quarter profit
- First-quarter profit increased mainly due to a turnaround in investment income, which offset falling turnover and IPOs in the period
Hong Kong Exchanges and Clearing (HKEX) on Wednesday reported its second-best quarterly profit, as improving market sentiment boosted investment income and derivatives trading in the first three months of the year.
The bourse operator’s net profit for the January to March quarter rose 28 per cent year on year to HK$3.40 billion (US$433 million), or HK$2.69 per share, beating analysts’ estimates of HK$3.14 billion compiled by Bloomberg. Revenue rose 19 per cent to HK$5.56 billion, better than expectations of HK$5.37 billion. Only the first quarter of 2021 produced a higher profit, of HK$3.84 billion, exchange data shows.
The strong growth in the first quarter was a continuation of a recovery at HKEX, following a HK$2.98 billion gain in the final three months of 2022. Hong Kong’s gradual easing of Covid-19 restrictions from September, before the full reopening of its borders with mainland China in January, has revived trading activity on the exchange, but initial public offering activity remains muted.
“The year has got off to a very good start, with HKEX reporting one of its best quarters ever,” chief executive Nicolas Aguzin said in a statement.
“Despite economic fragility impacting market volumes around the world, this quarter our derivatives market has gone from strength-to-strength,” he said, adding that the exchange had introduced many new measures during the quarter to enhance the two Stock Connect schemes and a listing reform to allow pre-revenue tech companies to list.