Hong Kong bourse operator’s Q1 profit down 13% on weaker listings, trading

By Thomson Reuters Apr 23, 2024 | 11:24 PM

By Selena Li

HONG KONG (Reuters) – Hong Kong’s bourse operator on Wednesday reported a narrower than expected 13% drop in first-quarter profit, as sluggish trading and muted listing activities weighed on its businesses.

The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) dropped to HK$2.97 billion ($379 million), from HK$3.41 billion a year earlier.

The profit, however, was above analysts’ forecasts of HK$2.82 billion compiled by LSEG.

HKEX said its revenue in the first quarter was down 6% to HK$5.2 billion, mainly due to shrinking trading and listing fee income.

“Whilst the cash market reflected broader macro sentiment and remained soft, there was a notable uptick in headline average daily trading in March and April, indicating growing investor confidence,” Bonnie Chan, HKEX’s new CEO, said in a statement.

Chan took on the top job in March at a time when HKEX is battling bleak profits amid geopolitical tensions and China’s faltering economy.

($1 = 7.8339 Hong Kong dollars)

(Reporting by Selena Li; Editing by Himani Sarkar)