HKEx reports 10% profit hike

Caused by rising average daily turnover value.

Hong Kong Exchanges & Clearing Ltd. said its second quarter net profit rose 10% to HK$1.17 billion, up from HK$1.07 billion a year earlier. Net profit for HKEx during H1 rose 5% to HK$2.33 billion from HK$2.22 billion.

Average daily turnover value at the stock exchange increased 24% to HK$62.3 billion in the second quarter from HK$50.2 billion a year earlier despite volatility in global markets. During the quarter, the benchmark Hang Seng Index fell 6.7%.

Revenue for the second quarter rose 17% to HK$2.22 billion from HK$1.90 billion. HKEx makes money from fees and tariffs related to securities, options, derivatives trading, listing fees, investment income and clearing and settlement fees.

It also recommended a first-half dividend of HK$1.82 a share, down from HK$1.85 a year earlier.

"Looking forward, the global financial market remains challenging, in particular with the anticipated unwinding of the liquidity easing policy in the U.S," said chairman Chow Chung Kong.

The exchange, however, will continue to develop a more diversified business and cautiously pursue every available opportunity. HKEx is the world's largest exchange operator by market value.