Cici Cao
Hong Kong Exchanges and Clearing (0388) posted record high revenue and net profit last year amid improved market sentiment.
The bourse operator posted a 10 percent rise in net profit to HK$13.05 billion and raised the interim dividend by 25 percent to HK$4.9, resulting in a 10 percent rise in the full-year dividend to HK$9.26.
Revenue and other income amounted to HK$22.37 billion while its core business revenue came to HK$20.56 billion, both up by 9 percent.
In 2024, HKEX's average daily turnover of Stock Connect set new records, with average daily turnover of northbound and southbound at 150.1 billion yuan (HK$160.72 billion) and HK$48.2 billion, respectively, up 39 percent and 55 percent.
Net profit in the fourth quarter reached HK$3.78 billion, up 46 percent from the same period in 2023 and a record for the company's fourth-quarter profits historically.
Revenue and other income climbed 31 percent to a quarterly record of HK$6.38 billion.
The ADT of stocks surged 1.13 times to HK$171.5 billion in the quarter.
Chief executive Bonnie Chan Yi-ting said at a press conference that the bourse has launched multiyear infrastructure enhancement programs and witnessed fresh trading records under an improved macro backdrop.
She revealed that the exchange is currently processing over 100 listing applications, many of which are from those companies already listed in the mainland.
Chan welcomed retail investors' enthusiasm for initial public offering subscriptions under changes in subscription procedures and operational arrangements for new listings but also reminded investors to be mindful.
Earlier, the watchdog expressed concerns about whether the substantial oversubscription of certain IPOs reflects genuine demand, noting that some newly listed stocks have dropped below their offering price post-listing.
Chan expects technical compatibility for the "T+1" settlement cycle to be ready by year-end, stressing that the industry must prepare for potential changes.
The technology enterprises channel unveiled in the budget will provide tailored support to guide innovative companies through their Hong Kong listing process, the chief said.
She noted that some firms, due to their innovative nature, may be uncertain about meeting listing requirements, qualifying for exemptions, or whether the listing department fully understands their technology and research and development. Chan added that technology companies contributed 80 percent of Hong Kong's total market fundraising last year.
HKEX's shares gained 1.05 percent to HK$365.
Bonnie Chan announces the results. SING TAO
