Hong Kong exchange’s 2024 profit rises 10% on higher trading revenues

HONG Kong’s bourse operator reported on Thursday a 10 per cent rise in profit in 2024, beating forecasts, bolstered by a sharp jump in trading revenues after China’s announcement of economic stimulus measures boosted investor sentiment.

The exchange also benefitted from an increased momentum in new listings, particularly in the second half of the year, as a result of China’s monetary and fiscal measures.

The profit attributable to shareholders of Hong Kong Exchanges and Clearing (HKEX) rose to HK$13.05 billion (S$2.3 billion) last year from HK$11.86 billion in 2023, according to its earnings statement.

The profit was ahead of a HK$12.96 billion average forecast from analysts compiled by LSEG.

The average daily turnover of equity products traded on the Hong Kong stock exchange, a key source of revenue for the bourse, posted a 29 per cent year-on-year rise to HK$120 billion, the financial statement showed.

The average daily turnover of equity products traded via the “southbound connect”, the capital or the investments coming out from the mainland to Hong Kong, posted a hefty jump of 55 per cent to HK$48.2 billion.

In 2024, Hong Kong saw 71 new listings raising a total of US$88 billion, a 90 per cent increase in fundraising compared with 2023.

“Looking to 2025, ongoing geopolitical and macroeconomic developments will likely continue impacting global markets,” said HKEX chief executive Bonnie Chan, who took charge last year, in the earnings statement.

“However, there are also encouraging signs of economic revitalisation, with stimulative policies in Mainland China and interest rate cuts in other major markets providing renewed vibrancy to Hong Kong’s fundraising and secondary markets.” REUTERS

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