HKEX posts record quarterly profit on trading, listings boom

[HONG KONG] Hong Kong’s stock exchange churned out a record profit last quarter and beat estimates, as the bourse rode a trading boom spurred by global market volatility and a spate of local listings.

Hong Kong Exchanges and Clearing Limited (HKEX) reported net income of HK$4.08 billion (S$687 million) in the three months ending Mar 31, up 37 per cent from a year earlier, according to a statement on Wednesday (Apr 30). That was ahead of the HK$3.98 billion average estimate of four analysts.

“The renewed global interest in China opportunities that picked up in the second half of 2024 continued to build momentum into 2025, boosted by exciting developments in artificial intelligence and innovation,” HKEX chief executive officer Bonnie Chan said.

The bourse’s trading and listings have picked up since late 2024 after China signalled greater support to the private sector, and as US President Donald Trump’s to-and-fro on tariffs created big bouts of market volatility.

Hong Kong’s dealmakers are optimistic of a flurry of secondary listings from mainland-traded Chinese firms this year. That would build on the Chinese government’s stimulus measures. Among closely-watched listings is battery maker Contemporary Amperex Technology Co Limited’s mooted US$5 billion-plus offering, which may become the largest globally in 2025.

HKEX’s quarterly revenue jumped 32 per cent to HK$6.86 billion. The latest profit surpassed the previous record of HK$3.84 billion set in the first quarter of 2021. The exchange’s shares have risen 16 per cent this year versus a 10 per cent increase in the city’s benchmark Hang Seng Index.

Core business revenue surged 36 per cent in the latest quarter from a year earlier, reflecting an increase in trading and clearing fees from higher volumes in stocks, derivatives and commodities.

Hong Kong’s cash trading turnover has more than doubled to an average of HK$249 billion year-to-date from the year-earlier period. It surged to a new high of HK$621 billion in early April.

A total of 17 companies debuted on the exchange in the first quarter, up from 12 a year earlier, and total fundraising surged, HKEX said. BLOOMBERG