HKEX posts third straight record quarterly profit as trading surges

Hong Kong Exchanges and Clearing (0388) reported a 56 percent growth in the third-quarter net profit, marking its third consecutive quarterly all-time high, as cash market turnover surged and mainland investors’ participation increased.

Net profit rose 55.8 percent from a year earlier to HK$4.9 billion, the bourse operator said on Wednesday.

Revenue and other income jumped 44.7 percent to HK$7.78 billion, also hitting a new quarterly high.

Core business revenue surged 54.3 percent to HK$7.48 billion, driven by record spot market trading volumes, which boosted trading and clearing fees.

Net investment income from corporate funds fell 50 percent to HK$254 million due to lower fair value gains from externally managed funds and weaker investment returns on internally managed funds.

For the first nine months, HKEX’s net profit climbed 44.8 percent to a record HK$13.42 billion, while revenue and other income grew 36.6 percent to HK$21.85 billion. 

Core business revenue rose 40.5 percent to HK$20.44 billion.

Average daily turnover in the cash market reached HK$256.4 billion in the first nine months, more than double the level a year ago, while the derivatives market saw a record 1.7 million contracts traded daily, up 11 percent year-on-year.

The initial public offering market also remained strong, with the city hosting the world’s second-largest listing during the quarter. As of September 30, 297 listing applications were being processed, HKEX said.

Chief executive Bonnie Chan Yi-ting said the exchange continued to benefit from global diversification trends and the growing appeal of Chinese assets, achieving record results for both the third quarter and the first nine months.

She added that HKEX would continue advancing its strategic initiatives to deepen market diversity, enhance liquidity and strengthen global connectivity, laying a solid foundation for the long-term development of Hong Kong’s capital markets.

HKEX's shares dipped 0.3 percent by 13.07 in Hong Kong.