HONG KONG : Hong Kong's bourse operator on Wednesday reported a 28 per cent increase in first-quarter profit. The profit attributable to Hong Kong Exchanges and Clearing Ltd (HKEX) in the first quarter rose to HK$3.41 billion ($434 million) from HK$2.67 billion in the same period of 2022, according to its earnings results.
HKEX said its revenues in the first quarter was up 19 per cent to HK$5.56 billion, the second-highest on record, mainly due to higher net investment income from margin funds and clearing house funds.
Shares of HKEX climbed more than 1 per cent on the profit jump, when the afternoon trading session resumed.
"The year has got off to a very good start, with HKEX reporting one of its best quarters ever," said Nicolas Aguzin, HKEX's chief executive.
"Despite economic fragility impacting market volumes around the world, this quarter our derivatives market has gone from strength-to-strength," he said.
HKEX's profit increase comes as challenging macroeconomic conditions have continued to impact capital markets.
Initial public offerings (IPO) in Hong Kong totalled $508.3 million in the first quarter, more than halved from $1.2 billion at the same time last year, Refinitiv data showed.
HKEX's trading fees of equity products for the first quarter were $836 million, a 13 per cent decrease compared with the total trading fees and tariffs of $962 million in the first quarter last year.
The bourse also reported lower clearing and settlement fees, citing fewer transactions as a primary reason.
The exchange and clearing house added more trading days to its stock connect calendar and expanded stocks eligible through the scheme in the first quarter.
It has also launched a new specialist technology company listing regime on March 31, adopting lower revenue thresholds.
By end-March, it had over 90 active applications in the IPO pipeline.
($1 = 7.8439 Hong Kong dollars)