Hong Kong's stock exchange reported record first-half profits on Wednesday, helped by buoyant fundraising and trading activities, and said it expects to sustain the momentum thanks to increased investor interest from mainland China and elsewhere.
Net profit for Hong Kong Exchanges and Clearing (0388.HK) (HKEX) rose 24% year-on-year to HK$10.57 billion ($1.4 billion) beating analysts' forecasts. Shares in the company climbed 2.4% after the results to a one-week high of HK$414.60.
Growth was primarily driven by optimism in China's prospects, and underpinned by innovation that renewed global investor interest in the city's markets, CEO Bonnie Chan said at a press conference.
The exchange's listing fees in the first half rose 36% to HK$590 million amid a rush of fundraising by Chinese technology and advanced manufacturing companies in the city. HKEX said it has a robust listing pipeline.
Hong Kong recorded 87 listings that raised HK$212 billion in the first half, up 94% from a year earlier, making it the world's second-largest IPO venue, the exchange said in its results.
"The record results ... reflect strong investor engagement from both the Chinese mainland and international markets, supported by product innovation and continued expansion of our market ecosystem," said Chan.
"The market has regained its vibrancy and our focus now is on sustaining that momentum through discipline and execution."
Earnings growth was driven mainly by increased trading and clearing activity in equity products, with trading fees jumping 18% to more than HK$3 billion from the same period last year.
Average daily turnover in the market rose 18% from a year earlier to HK$283.0 billion, while average daily turnover under Northbound Stock Connect more than doubled.
