HKEx sees 20% plunge in profits

World’s largest exchange blames fall in listings and turnover for dim result.

Hong Kong Exchanges & Clearing Ltd. said the 20% plunge was the first in three years. Net income fell to HK$4.08 billion in 2012 from HK$5.09 billion in 2011.

Global equity volumes plummeted last year, hitting exchanges and brokerages as creeping growth in China and the U.S. and Europe’s sovereign-debt crisis pummeled investor confidence.

Analysts believe a recovery for HKEx will depend on market activities in the coming months and on how well the London Metal Exchange performs. HKEx bought the LME for US$2.2 billion last year in a bid to transform itself into a global player.

Investors are likely to be watching LME closely to see if it will have a positive impact on HKEx.