HK exchange profit rises 13pc on higher trading fees

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