HKEX sees new high in H1 and quarterly growth as AI boom fuels IPO frenzy, LME storage surge

Hong Kong Exchanges and Clearing (0388) posted another record first-half revenue and profit growth, supported by a buoyant initial public offering market and the expansion of yuan-denominated products and commodities through the London Metal Exchange.

The market operator reported a 24 percent year on year increase in its net profit for the first half of 2026, reaching HK$10.57 billion. Revenue and other income in the same period rose 19 percent to HK$16.7 billion.

HKEX declared an interim dividend of HK$7.43, a 24 percent increase over the same period last year.

Core business revenue grew 19 percent, reflecting record volumes across the cash, derivatives and commodities markets, partly offset by lower net investment income from margin funds due to higher rebates payable to CPs.

Net investment income from corporate funds of HK$1.08 billion increased 4 percent, due to the non-recurring gains on valuation of HKEX’s unlisted equity investments of HK$298 million, partly offset by lower net fair value gains on the external portfolio, which fell from HK$202 million in the first half of 2025 to HK$30 million.

In the second quarter, both its revenue and profit also reached record quarterly highs. Net profit jumped 21 percent to HK$5.38 billion, and revenue and other income rose 18 percent to HK$8.5 billion.

In the first half, headline average daily turnover increased 18 percent to HK$283 billion. ADT of northbound trading of Stock Connect skyrocketed 102 percent to 345.3 billion yuan (HK$296.84 billion), and ADT of southbound trading of Stock Connect rose 11 percent to HK$123.1 billion.

Notably, Hong Kong’s IPO market ranked the second highest globally as it attracted significant listings from the artificial intelligence and technology, media and telecommunications sectors – marking 87 new listings in the first half, raising a total of HK$212.4 billion, a 94 percent surge over the same period last year. LME recorded double-digit growth in the first half, with chargeable average daily volume of metals contracts reaching a record half-yearly high of 844,000 lots, up 18 percent, reflecting heightened activity across the global metals markets.

HKEX’s chief executive Bonnie Chan Yi-ting said that benefiting from the robust market sentiment, strong fundraising demand from technology and AI-related companies, and active local and international investor participation led to record half-year trading volumes in the cash and derivatives markets, as well as in Stock Connect schemes between Shanghai, Shenzhen, and Hong Kong. The LME also reached a new half-year high in trading volume.

Looking ahead, Chan noted that the long-term opportunities for HKEX and Hong Kong’s role as a leading international financial hub remain compelling, as global capitals are increasingly seeking access to China’s innovation economy and Asia’s growth prospects despite persistent macro and geopolitical uncertainties. She added that HKEX will leverage its position through market reforms, enhanced connectivity, and the expansion of its multi-asset ecosystem.
 

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