Hong Kong's Exchange Operator Posts Record Quarter, Beats Estimates

By Kimberley Kao

Hong Kong Exchanges & Clearing reported record profit and revenue for the second quarter as trading and listing activity in the Asian financial hub continued to gain momentum.

The stock-exchange operator said Wednesday that net profit rose 21% from a year earlier to 5.38 billion Hong Kong dollars, equivalent to US$685.8 million. That topped the HK$4.77 billion consensus estimate of analysts in a Visible Alpha poll.

Revenue and other income climbed 18% to HK$8.50 billion, driven by higher trading and clearing fees on rising volumes across the cash, derivatives and commodities markets.

HKEX witnessed a surge in trading volumes during the quarter, with the headline average daily turnover jumping 22% to HK$289.5 billion, a new quarterly high, it said.

Trading activity was "supported by robust market sentiment, strong fundraising demand from technology and AI-related companies, and active participation from both Chinese mainland and international investors," said HKEX Chief Executive Bonnie Y Chan, whose contract was recently renewed for a further three years, through February 2030.

The funds raised from 87 new listings in the city in the first half of the year rose 94% to HK$212.4 billion compared with a year earlier.

Shares of HKEX were up 0.4% at midday ahead of the results.

The exchange has been rolling out measures to boost the attractiveness of the market for listings, such as allowing confidential filings for all companies, and cutting the minimum market capitalization requirement for companies with a weighted voting-rights structure to HK$20 billion from HK$40 billion.

That comes amid a surge of high-tech companies looking to tap the Hong Kong market, including Chinese firms that are already listed in mainland China.

Hong Kong's Hang Seng Indexes also plans to revamp its main technology stock benchmark to capture more high-growth technology companies amid a banner year for new listings, fueled by the artificial-intelligence and robotics sectors in China.

Under the proposed changes, the index would have 50 constituents, up from the current 30 largest Hong Kong-listed tech companies.

Still, AI-related stocks globally have been volatile recently, as investors who piled into companies tied to the infrastructure buildout reassess the large capital spending required to support it.

The Hang Seng Tech Index has fallen about 15% this year, underperforming markets with heavy chip exposure. Taiwan's Taiex and South Korea's Kospi have advanced more than 50% each, while the Nasdaq Composite has climbed 13% year to date.

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

(END) Dow Jones Newswires

August 19, 2026 00:45 ET (04:45 GMT)