HKEX Posts Strong Half Yearly Results, Continues Strong Growth

HKEX looks to build on growth in H2 2017 by launching new instruments and products.

Hong Kong Exchanges and Clearing Limited (HKEX) has announced its unaudited consolidated financial statement for the half year ending June 30, 2017 which shows a strong performance as revenue came in 10% better year on year.

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Total revenue rose by 10% year on year, coming in at HKD 6203 million ($793.22 million). This was due to the increase in the stock exchange listing fees, which means that there were many more companies listed this year.

The income from corporate and margin funds also showed a good improvement from last year, and also an increase in the cash market turnover. This increase, though, was offset by a decline in derivatives volumes.

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Operating expenses rose by 1% to HKD 1,711 million ($213.88 million). If the insurance recovery due to litigation was ignored, then the operating expenses would have risen by 3% year on year. This was due to the increase in staff costs and infrastructure, which is a general trend across all markets and regions.

Earnings before interest, tax, depreciation and amortization (EBITDA) was 72% for this half year, 2% higher than the same period last year, which shows strong and consistent earnings through this period.

Earnings per share also came in much better at HKD 2.86 ($0.36), which was 16% higher year on year.

The bulk of this strong performance from the exchange was in the cash segment which showed a 21% increase in revenue year on year. This included an increase in stock exchange listing fees and data fees as well.

With HKEX launching trading on offshore renminbi, US dollar gold futures and other new products, the exchange hopes to see increased volumes and trading on the derivatives segment as well in the second half of 2017.

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