Hong Kong exchange reports jump of nearly 40% in first-half profit

[HONG KONG] Hong Kong’s stock exchange operator said on Wednesday (Aug 20) that its first half profit reached HK$8.5 billion (S$1.4 billion), up almost 40 per cent, driven by a sharp increase in daily stock trading and a revived listings market.

The revenue of Hong Kong Exchanges and Clearing (HKEX) reached HK$14.1 billion in the past six months, up 33 per cent on the year, it said in a stock exchange filing.

It declared an interim dividend of HK$6, up from HK$4.36 last year, while earnings per share rose to HK$6.74 from HK$4.84.

HKEX said that its average daily equities turnover, or buying and selling of stocks, rose 122 per cent in the half to be worth HK$222.8 billion. South-bound stock trading, where mainland investors trade Hong Kong shares, was up nearly 200 per cent.

Hong Kong’s Hang Seng Index is up almost 25 per cent year to date, making it one of the world’s best-performing major equities markets.

Analysts say the surge in the benchmark index has been driven by foreign investors’ return to buying Chinese stocks, despite US President Donald Trump’s April tariffs package and geopolitical tension between the two countries. REUTERS