HKEX posts second-best interim period as investments, derivatives trading boost profit to US$809 million

The Hong Kong stock exchange operator’s net profit in the first half rose 31 per cent year on year to HK$6.31 billion (US$809 million)

The profit increase was mainly due to a gain in its investment income and higher derivatives trading

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Hong Kong Exchanges and Clearing operates Asia’s third-largest stock exchange by market cap. Photo: Jonathan Wong

Published: 12:39pm, 16 Aug 2023Updated: 7:20pm, 16 Aug 2023

Hong Kong Exchanges and Clearing (HKEX), which operates Asia’s third-largest stock market by capitalisation, will continue diversifying its product line-up and boost listings by more international companies, its CEO said.

“There are a lot of companies that want to choose Hong Kong as a capital raising venue when the market sentiment turns vibrant again,” said Nicolas Aguzin, CEO of the HKEX at a post result briefing on Wednesday.

HKEX on Wednesday reported its second-highest first-half profit, as higher investment income and derivatives trading business offset falling turnover and new listings.

“We are facing a situation where international markets are quite challenging, meaning IPOs internationally have actually decreased by over 30 per cent in the first half,” he said.

Aguzin and HKEX top executives have visited Saudi Arabia three times in the past nine months, and stepped up business trips to several Southeast Asian markets to drum up listing business.

Listing applications have been received from over 110 companies, he said, while many companies have expressed interest to list under the new listing regime introduced in April for specialist technology companies that do not have any income or profit, a mandatory requirement for main board listing.