HKEX sees record 26% profit growth to $6.61m in H1

This is thanks to the buoyant IPO market and strong trading volumes amongst others.

The Hong Kong Exchanges and Clearing Limited reported a 26% profit growth to a “record half-yearly high” of $6.61m in the first half of 2021.

“This has been a record first half for HKEX. Driven by a buoyant initial public offering market, strong trading volumes, and significant momentum in Stock Connect, revenue and profit reached record highs,” CEO Nicolas Aguzin said.

“The macro backdrop will remain challenging in the months ahead, but we remain resolutely focused on continuing to enhance the attractiveness of our markets, responding to the needs of our customers and driving our business forward. We are well-placed for the opportunities and challenges ahead.”

Revenue and other income generated during the said period also rose 24% to a record high of $10.9b. This is also 5% up compared to the previous high recorded in the second half of 2020.

Of this, the Stock Connect revenue accounted for $1.32b (+78%); whilst the net investment income dropped to $64m due to reduced Margin Fund investment income. This was partially offset by a $321m gain in the collective investment scheme.

“Looking forward, we will maintain our resolute focus on our resilience, sustainability, and innovation, delivering on our ambitions, and reinforcing our role as the global markets leader in the Asian time zone,” Chairman Laura M. Cha said in a statement.

“We will closely collaborate with our customers, partners, regulators, and other stakeholders, to uphold market quality and integrity, further increase our product diversity and heighten our relevance in connecting Mainland China and international capital markets.”

The group declared an interim dividend of $4.69 per share, payable in cash.