Hong Kong Exchanges & Clearing (HKEX) reported a 30% increase in net profit for the third quarter, attributed to higher net investment income. The exchange operator’s net profit reached HK$2.95 billion (US$377.1 million), compared to a 31% increase during the first half of the year.
During the third quarter, core revenue rose by 9% to HK$4.70 billion. This growth was primarily driven by increased net investment income, although it was partly offset by lower listing fees. HKEX saw a decrease of HK$66 million in listing fees for equity products due to a decline in the number of forfeitures. Despite this, the headline average daily turnover rose by 1% to HK$98.4 billion.
Chief Executive Nicolas Aguzin expressed optimism about the business’s position, stating, “The macro backdrop remains fragile, but the business is in good shape and is well-positioned to capitalize on slowly improving market sentiment.”
In the first nine months of the year, HKEX raised HK$24.6 billion through 47 new listings, down 67% from the previous year. This decline was attributed to the overall weakness in the global market for initial public offerings. However, HKEX highlighted that it has a strong IPO pipeline, with 115 active applications as of September 30. The company also noted early signs of renewed activity in the global fundraising market heading into the fourth quarter.