HKEX buoyant as profit soars to record $6.6b

Hong Kong Exchanges and Clearing (0388) saw a record interim net profit and revenue, and the bourse has received more inquiries since the Chinese authorities tightened controls on overseas listings.

Net profit rose 26 percent to HK$6.61 billion year-on-year while the interim dividend surged by 26 percent to HK$4.69.

China's recent tightening of regulations on its tech titans is no different to other markets such as the US and Europe, said Nicolas Aguzin, chief executive of the exchange, in his debut earnings meeting since taking the job in May.

He added that the mainland is looking at other ways to supervise new-economy companies.

Trading volume has been volatile amid news over the crackdown but the market is expected to stabilize once this information is digested, said Aguzin.

He said around 200 companies have submitted listing applications, and that HKEX's listing department and listing committee are looking for ways to improve the process every day.

HKEX posted a drop in profit in the second quarter as a boom in initial public offerings and trading at the start of the year waned.

Speaking on the stamp duty increase which took effect last week, Aguzin said he understands the government's aim is to boost income with the increase, but it is too early to evaluate its impact on the market.

HKEX will lower the operating and transaction costs to make it the most competitive market in the world, Aguzin added.

The city's first stamp-duty increase in 28 years sent HKEX shares tumbling earlier this year.

Meanwhile, the exchange will decide on the next move on the special purpose acquisition companies after receiving the response from the market, he said.

Hong Kong is launching a consultation on the blank-check companies in September, Financial Secretary Paul Chan Mo- po said in July.

Shares of HKEX rose 0.4 percent to close at HK$517.5 yesterday.