Markets

Hong Kong Stock Exchange Profits Fall 30% in First Quarter

HKEX chief executive Nicolas Aguzin has had a mediocre start to the year but the second half could be very different. Photo: HKEX.

Hong Kong’s stock exchange operator saw profits fall more than 30% in the first quarter, partly offset by gains at its London Metal Exchange (LME) unit, which was boosted by soaring commodity prices after Russia’s invasion of Ukraine.

Hong Kong Exchanges and Clearing (HKEX) net income fell 31% compared with the same period in the previous year to HK$2.67 billion ($240 million), missing the HK$3.19 billion forecast by analysts polled by Refinitiv.

Revenue declined 21% to HK$4.69 billion.

The company said that Hong Kong’s bourse had seen 17 new listings in the quarter, raising HK$14.9 billion, 89% lower that last year.

The slowdown comes as tensions rise between Beijing and Washington over Chinese companies listed in the US.

Average daily turnover for stocks traded on the exchange also fell 36% to $126 million. LME daily turnover rose 10% to $75 million.

HKEX had demonstrated “robustness and resiliency despite ongoing market volatility and geopolitical fragility”, chief executive Nicolas Aguzin said.

HKEX shares have dipped 30% this year. “We were not immune to global market sentiment, which resulted in some softness in the IPO market, reduced valuations in our investment portfolio and pricing volatility in our commodities market,” Aguzin added.

Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.