HKEX net up 7pc in third quarter

Cici Cao

Hong Kong Exchanges and Clearing's (0388) net profit in the third quarter rose by 7 percent to HK$3.14 billion year-on-year, beating market expectations.

Revenue rose by 6 percent to more than HK$5 billion, a new third-quarter high.

Core business revenue was up 3 percent over the same period last year, due to increases in trading and clearing fees from higher volumes across the cash, derivatives and commodities markets.

However, revenue was partly offset by lower net investment income from margin funds.

Revenue and other income in the third quarter was 1 percent lower than the second quarter.

HKEX's average daily turnover in the third quarter was HK$119 billion, an increase of 21 percent year-on-year.

The average daily turnover of southbound trading of Stock Connect was HK$39.6 billion, a year-on-year increase of 37 percent, while the average daily turnover of northbound trading was HK$110.3 billion, a year-on-year increase of 4 percent.

The net investment income from corporate funds was HK$507 million, a nearly 41 percent year-on-year growth, with the operating expenses up 5 percent.

Bonnie Chan Yi-ting, chief executive of HKEX, said the Hong Kong cash and derivatives markets turned vibrant in September, supported by the announcement of economic stimulus measures in the mainland, and the monetary easing policies adopted by major central banks.

HKEX's shares rose as high as HK$322.6 before closing 1.2 percent up at HK$314.8.