HK ex­change profit rises 13pc on higher trad­ing fees

New Straits Times - - Business -

HONG KONG: The Hong Kong Ex­changes & Clear­ing Ltd (HKEX) posted a 13 per cent rise in sec­ond-quar­ter net profit, beat­ing an­a­lysts’ es­ti­mates, bol­stered by a surge in trad­ing and stock listing fees.

The stock ex­change op­er­a­tor of Hong Kong, which was the world’s No. 1 ini­tial pub­lic of­fer­ing mar­ket in 2015 and last year, was ben­e­fit­ing from an im­prove­ment in in­vestor sen­ti­ment that has trans­lated into higher trad­ing ac­tiv­ity.

HKEX re­ported yes­ter­day a profit of HK$1.8 bil­lion (RM984.4 mil­lion) for its fis­cal sec­ond quar­ter ended in June, up from HK$1.6 bil­lion in the same pe­riod last year.

That com­pared with the HK$1.6 bil­lion av­er­age fore­cast of an­a­lysts.

As com­pe­ti­tion with other lead­ing global stock listing venues has in­ten­si­fied, HKEX was lever­ag­ing its role as a gate­way to China’s deep-pock­eted in­vestors to boost rev­enue.

The bourse last month un­veiled a pro­posal for a new listing board that would of­fer spe­cial vot­ing rights and waive prof­itabil­ity rules, aim­ing to at­tract sec­ondary list­ings from Chi­nese firms that typ­i­cally choose New York over Hong Kong.

HKEX was also at­tempt­ing to boost its com­modi­ties busi­ness through the launch of new prod­ucts by its LME plat­form. It was also ex­pected to ben­e­fit from the re­cent launch of a bonds crosstrad­ing sys­tem with China.

HKEX’s av­er­age daily turnover in the cash mar­ket on the stock ex­change for the sec­ond quar­ter of this year was HK$77.8 bil­lion, up five per cent com­pared with the year-ago pe­riod. Reuters

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