24th April 2024 – (Hong Kong) Hong Kong Exchanges and Clearing Ltd. (HKEX), the operator of the city’s stock exchange, on Wednesday reported a smaller-than-anticipated fall in its first-quarter profits, despite facing subdued trading volumes and reduced listing activities. The financial results reflect the ongoing economic challenges and geopolitical tensions impacting global markets.
For the first quarter, HKEX recorded a profit of HK$2.97 billion (approximately US$379 million), descending from HK$3.41 billion reported in the same period last year, marking a 13 per cent decrease. However, this figure surpassed the expectations of financial analysts, who had predicted a profit of HK$2.82 billion, according to data compiled by LSEG.
Revenue for the quarter also witnessed a downturn, dropping by 6 per cent to HK$5.2 billion. This decline was primarily attributed to decreased income from trading and listing fees, which have been affected by the broader economic slowdown and less robust capital market activities.
Despite these challenges, there were signs of recovery in the latter part of the quarter. “Whilst the cash market reflected broader macro sentiment and remained soft, there was a notable uptick in headline average daily trading in March and April, indicating growing investor confidence,” stated Bonnie Chan, who recently assumed the role of CEO at HKEX in March.
Chan’s leadership comes at a critical time for HKEX as it navigates through a period of relatively low profits, influenced by both global geopolitical unrest and uncertainties within China’s economic landscape. Her comments suggest a cautious optimism that investor sentiment and market activities might be on an upward trajectory, despite the prevailing headwinds.
