HKEX profit falls 13% in 1Q24

Low trading and listing fees pulled the bourse operator’s earnings in the first quarter.

Hong Kong Exchanges and Clearing Ltd (HKEX) reported a profit of $2.97b in the first three months of the year, which was 13% lower than the same period last year. 

HKEX attributed the contraction to a drop in revenue, which was down 6% to $5.2b versus a year ago. 

HKEX associated the decline in revenue to lower trading and clearing fees, which were down 22% to $654m, and 7% to $640m, respectively.

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Lower listing activities also weighed on HKEX’s Q1 profit, with only 12 new companies listed on the main board, down from 18 in the same period last year. 

The decreases were partly offset by higher LME trading and clearing fees driven by both volume and fee increases, HKEX said.

“HKEX continued its efforts to work closely with the HKSAR Government’s Task Force on Enhancing Stock Market Liquidity, driving discussion on ways to further enhance the attractiveness of Hong Kong’s markets,” the operator said.

“A number of reform proposals are under study, and measures will be introduced in the future to improve the market mechanism and promote market development,” it added.