Hong Kong stock exchange operator posts record first-half earnings, as blockbuster IPOs help it reclaim No 1 fundraising ranking

Bourse operator Hong Kong Exchanges and Clearing reported on Wednesday a 44 per cent increase in interim earnings, boosted by a raft of initial public offerings that helped it regain the top spot in global fundraising rankings.

HKEX said on Wednesday its interim net profit stood at HK$5.04 billion (US$642.1 million) or HK$4.07 per share, up from HK$3.49 billion a year earlier. This is the highest half-year profit since the exchange was established and listed in 2000. It is also higher than the 37 per cent profit growth to HK$4.8 billion estimated by HSBC.

HKEX’s shares closed 1 per cent higher at HK$229 following the results announcement.

After deducting first-quarter profit of HK$2.56 billion, net profit for the second quarter from April to June stood at HK$2.48 billion, up 40 per cent from a year earlier and beating Nomura’s estimate of 22 per cent year-on-year profit growth to HK$2.16 billion.

“During the first half of 2018, the world’s financial markets experienced bouts of volatility following significant corrections across major stock markets. Investor sentiment was dominated by uncertainties over escalating US-China trade tensions, geopolitical risk in several parts of the world and policy divergence of major central banks. Lingering uncertainties are likely to cast a dark cloud over global markets for the remainder of this year,” said Laura Cha Shih May-lung, chairwoman of HKEX, in her first interim results statement.

“As the world enters a new era of fintech, there will be many opportunities as well as challenges. At HKEX, an innovation lab was established to explore the increased use of emerging technologies in various parts of our business, both operationally and strategically,” Cha said.