Hong Kong Stock Exchange Sees 40% Profit Surge in First Half

Hong Kong’s stock exchange operator, the Hong Kong Exchanges and Clearing (HKEX), reported a significant profit increase for the first half of 2023. The profit reached HK$8.52 billion (approximately $1.09 billion), marking a nearly 40% rise compared to the same period last year. This growth is attributed to a surge in daily stock trading and a revival in the listings market.

In a filing with the stock exchange, HKEX noted that its total revenue for the past six months reached HK$14.1 billion, up by 33%. This positive performance led the exchange to declare an interim dividend of HK$6, an increase from HK$4.36 in the previous year. Additionally, earnings per share rose to HK$6.74 from HK$4.84.

Rising Trading Activity and Market Performance

The average daily turnover in equities trading saw a remarkable increase of 122%, amounting to HK$222.8 billion (around $28.54 billion). Notably, south-bound stock trading, where investors from mainland China purchase Hong Kong shares, surged nearly 200%.

The performance of Hong Kong’s Hang Seng Index also reflects this positive trend, having risen almost 25% year to date, positioning it among the best-performing major equity markets globally. Analysts suggest that this uptick in the benchmark index has been fueled by a renewed interest from foreign investors in Chinese stocks, even in light of geopolitical tensions and the tariffs introduced by U.S. President Donald Trump in April.

The robust trading environment in Hong Kong signals a renewed confidence among investors, contributing to a dynamic financial landscape. As the market continues to evolve, observers will be keen to track the ongoing developments and their implications for both local and international investors.