Hong Kong’s stock exchange operator posts record first-half profit amid a flurry of mega IPOs, higher turnover
- Bourse operator’s first-half profit reached HK$5.23 billion (US$675 million), the third consecutive year it has hit a record high
- Sixty-four companies raised HK$92.8 billion in the first half, making Hong Kong the world’s No 2 IPO destination
The operator of Hong Kong’s stock exchange reported record first-half and quarterly profit on the back of rising market turnover and a wave of mainland Chinese tech giants seeking listings in the city amid rising political tension between Washington and Beijing.
The second-quarter profit rose 14 per cent to HK$2.97 billion, also the highest on record and ahead of analysts’ forecasts of HK$2.698 billion. The South China Morning Post calculated the earnings for the three months to June 30 by deducting the first-quarter profit of HK$2.26 billion from the first-half profit.
The bourse operator’s previous highest quarterly profit came in the first three months of 2019, when it made HK$2.61 billion.
“HKEX had a very good first half, set against a turbulent and volatile macro backdrop, reporting record half-yearly revenue and other income, and profit,” said HKEX chief executive Charles Li Xiaojia in a results statement posted on the exchange’s website at lunch time.
Li said the strong earnings were because of high market turnover and initial public offerings, particularly the sizeable secondary listings, which offset softness in investment income caused by swings in global portfolio valuations during the period.
“With robust trading volumes, a strong IPO pipeline, and an expanding product portfolio, including the suite of newly launched MSCI index futures, I am confident that HKEX will continue to play a major role in connecting China and connecting the world,” he added.