Hong Kong's Exchange Operator Posts Record Quarter on Surging IPOs, Trading Activity — Update

By Kimberley Kao

Booming trading and listing activity in Hong Kong propelled the city's exchange operator to another record quarter, putting the Asian financial hub in a strong position to continue reform efforts to attract more capital.

Hong Kong Exchanges & Clearing 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 reached HK$8.50 billion, climbing by a stronger-than-expected 18% as trading and clearing fees rose on higher volumes across the cash, derivatives and commodities markets. The headline average daily turnover jumped 22% to HK$289.5 billion, HKEX said, a new quarterly high.

Strong market sentiment helped drive trading activity, HKEX Chief Executive Bonnie Y Chan said. Fundraising demand from technology and AI-related companies, as well as active participation from Chinese mainland and international investors alike also contributed to the robust performance, said 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. Chan said the IPO pipeline remains strong, without specifying a number.

The record results come as the exchange has been rolling out measures to boost the attractiveness of the market for listings. They also coincide with a surge of high-tech companies looking to tap the Hong Kong market, including Chinese firms that are already listed in mainland China.

Key changes to the listing framework include 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.

"Through market reforms, enhanced connectivity and the expansion of our multiasset ecosystem, we are strengthening the competitiveness, resilience and attractiveness of our markets," Chan said.

Although macroeconomic and geopolitical uncertainties persist, opportunities for HKEX and Hong Kong remain compelling, Chan said, "as global capital increasingly seeks access to China's innovation economy and Asia's growth prospects."

John C. Lee, co-head of Asia country coverage at UBS, expects the reforms to broaden Hong Kong's appeal to high-quality international issuers

"Combined with deep capital pools, improving market liquidity and strong investor participation, the enhanced listing framework should support a healthy pipeline of listings and reinforce Hong Kong's position as one of the world's premier fundraising centers," Lee wrote in a recent note.

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 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

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August 19, 2026 06:54 ET (10:54 GMT)