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Hong Kong Exchanges and Clearing Limited (HKEX) reported its best second quarter on record, as initial public offerings (IPOs) and stock trading returned amid a leadership change at the city's bourse.
Net profit at the operator of the world's fourth-largest stock market rose 9 per cent to HK$3.16 billion (US$405 million), or HK$2.49 per share, in the three months ended June, in line with market estimates. Sales increased 8 per cent to HK$5.4 billion during the quarter, also meeting analysts' forecasts.
The results were the market operator's first quarterly growth in nine months, marking an auspicious start for Bonnie Chan Yiting, who took over as HKEX's chief executive in March. Carlson Tong Ka-shing, a veteran accountant and regulator, took over as the exchange's chairman on April 24.
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HKEX shares dipped 0.4 per cent to HK$231 at the noon trading pause in Hong Kong before the exchange reported its earnings. The stock has fallen by 14 per cent this year.
CEO Bonnie Chan spoke at the listing ceremony of Black Sesame Holdings on August 8. 2024. Photo: Jonathan Wong alt=CEO Bonnie Chan spoke at the listing ceremony of Black Sesame Holdings on August 8. 2024. Photo: Jonathan Wong>
Hong Kong's benchmark Hang Seng Index rose 7 per cent in the second quarter, recovering from a 14-per cent slump in 2023 and a 3-per cent decline in the first three months.
Listing activity returned to the city that was the world's top IPO destination in seven of the previous 15 years. Eighteen companies, including the artificial intelligence-powered drug researcher QuantumPharm, raised a combined HK$8.6 billion during the second quarter, 79 per cent more than the first three months, according to HKEX data.
More shares changed hands in the second quarter, as the average daily trading turnover rose 18 per cent from last year to HK$102.7 billion, boosting the HKEX's fee income by 7 per cent. The active transaction was a gain of 22 per cent from the HK$99.4 billion of transactions in the first three months of the year.
"HKEX had a robust first half, with the second quarter seeing an upswing in market momentum and trading activity, driving record second quarter revenue and other income and profit," Chan said in a statement. "Fundraising activity remained resilient and has shown signs of warming, with the second quarter seeing a 50 per cent quarter-on-quarter increase in new listings and a 79 per cent increase in IPO funds raised."