Hong Kong Exchanges and Clearing (HKEX) announced record first-half profits, with net profit rising 24% year-on-year to HK$10.57 billion ($1.4 billion), surpassing analyst forecasts. This strong performance was primarily driven by buoyant fundraising and trading activities.
CEO Bonnie Chan attributed the growth to increased investor interest from mainland China and other international markets, alongside product innovation. The exchange's listing fees surged by 36% to HK$590 million in the first half, propelled by a rush of fundraising from Chinese technology and advanced manufacturing companies. Hong Kong hosted 87 listings that raised HK$212 billion, a 94% increase from the previous year, securing its position as the world's second-largest IPO venue.
Earnings growth was also significantly boosted by heightened trading and clearing activity in equity products, with trading fees jumping 18% to over HK$3 billion. The average daily market turnover increased by 18% from the prior year to HK$283.0 billion, and average daily turnover under Northbound Stock Connect more than doubled.
Separately, the second quarter alone saw HKEX achieve its best-ever performance, earning HK$5.38 billion ($686 million), primarily from increased trading and a wave of IPOs, particularly from Chinese AI-linked companies. Despite these strong results, HKEX shares have remained flat this year amid broader market weakness. Looking ahead, CEO Bonnie Chan outlined plans to diversify into multiple asset classes and extend trading hours to cater to international investors, aiming for a more diverse product offering beyond just IPOs.
