HKEX warns coronavirus epidemic poses challenges after posting record net profit for second straight year
- Bourse operator reports 1 per cent rise in annual net profit to HK$9.39 billion (US$1.21 billion) amid a slew of new listings and higher stock connect turnover
- HKEX chairwoman Laura Cha Shih May-lung warns Covid-19 and other global factors will shape performance of global stock markets this year
Hong Kong Exchanges and Clearing warned that this could be a challenging year as the coronavirus outbreak and other macroeconomic factors continue to adversely affect global markets after it reported record profit for a second straight year.
“The outbreak of the virus brings a lot uncertainties as we do not know how long it will last and how far it will spread,” said Charles Li Xiaojia, chief executive of the stock exchange operator in a telephone conference on Wednesday afternoon.
Li hosted a teleconference instead of a conventional press conference in view of the Covid-19 epidemic, which has infected more than 80,000 people worldwide.
“The outbreak has affected the market and led to a slowdown of IPO activities. In January, we had 22 IPOs but only two after the Lunar New Year,” he said. “However, since many IPOs will happen in the second half of the year, it will be too early to say how the virus will affect the whole year’s performance in the IPO market.”
The outbreak will not affect HKEX’s expansion plans under a three-year strategy it launched last year, as the bourse continues to eye mergers and acquisition opportunities after the failed bid to buy the London Stock Exchange last year.
“We will continue to expand our international footprint. If there is a good opportunity, we will look into it,” he said.