HKEX will further diversify products and carry out more listing reforms after reporting lowest profit since 2017

HKEX CEO Nicolas Aguzin vows to diversify more products and carry out listing reforms to boost future growth

New blueprint unveiled as HKEX reports worse than expected first-half net profit of HK$4.84 billion

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Fundraising on the HKEX stood at US$2.3 billion in the first half, the lowest since the first half of 2003 yielded US$802.3 million. Photo: Jonathan Wong

Published: 1:03pm, 17 Aug 2022Updated: 9:29pm, 17 Aug 2022

Hong Kong Exchanges and Clearing (HKEX) will continue to diversify new products and its own investment strategy, while it also plans to carry out more listing reforms to attract more technology start-ups to list in the city, according to its CEO.

Nicolas Aguzin unveiled these plans on Wednesday in a post results briefing after the HKEX reported its lowest interim profit in five years, with the city’s bourse operator suffering from investment losses and lower fees from securities trading and initial public offerings.

Net profit fell 27 per cent to HK$4.84 billion (US$616 million), or HK$3.82 per share, in the six months to June 30, it said in an exchange filing. That’s deeper than the HK$5.15 billion consensus forecast among analysts tracked by Bloomberg. It was also the lowest first-half profit since 2017 when the company generated HK$3.51 billion of earnings.

Core business revenue fell 11 per cent to HK$9.28 billion, beating expectations of HK$9.16 billion.

HKEX CEO Nicolas Aguzin. Photo: Jelly Tse

“Though our numbers were down on the record comparable results last year, reflecting this weak overall market sentiment, we have remained resolutely focused on building our business for the long-term, investing in new initiatives such as a new SPAC regime, ETF Connect and Swap Connect,” Aguzin said.

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