On Wednesday, Hong Kong Exchanges & Clearing Ltd announced its second-best year-to-date performance, bolstered by a strong pipeline of upcoming initial public offerings (IPOs).
HKEx sees strong third quarter
The operator of the Hong Kong Stock Exchange reported that third-quarter core business revenue rose to HKD 4.85 billion (approximately USD 624.4 million), a 3.3% increase from HKD 4.70 billion in the same period last year. This growth was driven by higher trading and clearing fees resulting from increased volumes in the Cash, Derivatives, and Commodities Markets, although it was somewhat tempered by a decline in net investment income from Margin Funds.
With positive market sentiment, total revenue and other income reached a record HKD 5.37 billion for the quarter, up 5.7% from HKD 5.08 billion. Additionally, net investment income from Corporate Funds surged 41% to HKD 507 million, compared to HKD 360 million, driven by higher net fair value gains from externally managed investment funds.
Profit attributable to shareholders increased by 6.8%, rising to HKD 3.15 billion from HKD 2.95 billion, while basic earnings improved to HKD 2.49 from HKD 2.33.
Nine months figures
For the nine months ending in September, HKEx noted that its results were the "second best ever," trailing only behind the "exceptional" performance of 2021.
In the third quarter, HKEx welcomed 15 new listings that collectively raised HKD 42.2 billion, with the majority coming from Chinese appliance manufacturer Midea Group Co Ltd, which alone raised HKD 35.7 billion. This marked the largest IPO in Hong Kong since February 2021 and the second-largest globally during the quarter.
HKEx stated, "The IPO pipeline remained healthy, with 96 active applications as of September 30, 2024."
