Hong Kong Exchange Operator Posts Record Profit on Listings, Trading Growth — Update

By Kimberley Kao

Hong Kong Exchanges & Clearing's profit and revenue hit record highs in the first quarter as trading and listing activity in the Asian financial hub gained momentum despite the Middle East conflict unsettling markets.

The exchange operator said Wednesday that net profit jumped 27% from a year earlier to 5.19 billion Hong Kong dollars, equivalent to US$662.3 million. That exceeded analysts' consensus estimate of HK$4.61 billion in a Visible Alpha poll.

Revenue and other income climbed by a better-than-expected 20% to HK$8.20 billion, the company said, driven by higher trading and clearing fees from increased volumes across the cash and commodities markets.

Trading volumes were also stronger during the period, with the headline average daily turnover rising 14% to HK$276.7 billion, it said.

Hong Kong remained the world's top IPO venue in the first three months of 2026.

"Global capital continued to seek safe havens and access to Asian growth opportunities in a volatile macro environment," Chief Executive Bonnie Y Chan said.

HKEX shares extended gains after the earnings, trading about 3% higher in the afternoon session. The stock fell 4.7% in the first quarter amid geopolitical tensions, particularly in the Middle East, that hurt investor sentiment. The Hang Seng Index shed 3.3% during the period, while the Hang Seng Tech Index lost 16%.

HKEX CEO Chan said secondary-market activity reflected strong participation from both Chinese mainland and international investors, which helped drive Stock Connect activity, referring to the trading link with exchanges in Shanghai and Shenzhen.

In the three months ended March, funds raised from 40 new listings in the city rose nearly sixfold to HK$110.4 billion, the strongest first-quarter performance since 2021, HKEX said.

The number of active IPO applications reached 431 as of the end of March, up 25% from end-December.

The exchange operator has taken a series of steps this year to boost Hong Kong's competitiveness, proposing looser requirements for companies seeking to go public and seeking consultations to improve the market structure for its listing framework.

It launched new indexes with Bursa Malaysia and the Korea Exchange, and has been working with Brazil's stock-exchange operator to advance carbon-market development and seek new opportunities in commodities.

"Looking ahead, we will continue to deepen regional connectivity, broaden participation and invest in building a resilient, innovative multiasset ecosystem, ensuring our markets remain well-positioned to capture opportunities across market cycles," Chan said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

April 29, 2026 02:39 ET (06:39 GMT)