HKEX Posts Record $849 Million Profit in H1 with Trading Boost

Hong Kong Exchanges and Clearing (HKEX), which operates Asia’s largest stock market by market cap, has published its first half-yearly results for 2021, reporting a record in revenue and profits. According to the bourse operator, its revenue for the period came in at HK$10.06 billion (around $1.3 billion) compared with HK$7.94 billion ($1.02 billion) a year earlier.

The heightened revenue also resulted in a record income as the exchange’s profits for the period reached HK$6.61 billion ($849.39 million). This was a 26 percent jump from last year’s HK$5.23 billion.

Trading Boost

The 27 percent jump in revenue was boosted by the market volatility and also the listing of several large Chinese companies on the exchange. The announcement revealed that the average daily turnover for securities on the exchange jumped by 60 percent year-over-year to reach HK$188.2 billion. Activities on the derivatives markets also increased, but only by a marginal 3 percent.

“Markets throughout the first half of the year have remained volatile, reflecting concerns over the path to recovery from the pandemic, continued fragile global geopolitics, and concerns over rising inflation levels around the world,” HKEX Chairman Laura Cha said in the results filing.

“HKEX has successfully both maintained its resiliency, and driven new market and product initiatives and programs.”

Performance in the second quarter, however, slowed down from the quarterly record it achieved in Q1 2021. But, both the quarterly figures remained strong when compared to the numbers of the previous year.

Wednesday’s filing elaborated that equities trading fees and tariffs contributed the largest part to the revenue. However, the exchange is in a constant push to broaden activities in derivatives, fixed income, and commodities markets.

The basic earnings per share of the exchange jumped 26 percent to HK$5.22. It has also decided to distribute an interim dividend of HK$4.69 per share, compared with HK$3.71 last year.

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