HKEX Q3 profit up 20%

HONG KONG: Hong Kong Exchanges and Clearing Ltd (HKEX), the stock exchange operator in the Asian financial hub, reported a 20% rise in quarterly net profit yesterday, bolstered by higher trading and stock listing incomes.

The bourse has seen a sharp jump in net profit in recent quarters on the back of a slew of blockbuster initial public offerings, mainly from Chinese companies, this year, as well as increased trading on improved investor sentiment.

HKEX posted a net profit of HK$2.4 billion (RM1.3 billion) in its fiscal third quarter ended September, compared with HK$2 billion a year ago, the company said in a statement.

Trading fees increased 16% to HK$1.5 billion, while stock listing fees jumped 29% to HK$456 million.

Shares of the company extended their morning gains after the results were announced, rising as much as 3.9% in the afternoon trade. They were up 1.8% at 0521 GMT.

The number of companies filing to go public in Hong Kong has jumped almost three-fold this year, driven in part by China’s burgeoning technology sector and listing reforms designed to attract highgrowth technology and biotechnology companies.

But they will have to contend with weaker secondary markets which could hurt deals. The Hong Kong stock index dropped 4% in the September quarter, in its biggest quarterly decline since the October-December period of 2016. – Reuters