Hong Kong bourse reports 3% drop in first-half profits, Q2 activity picks up By Reuters

By Selena Li

HONG KONG (Reuters) – Hong Kong’s stock exchange operator said it was cautiously optimistic for the year, despite a 3 percent drop in first-half profits due to sluggish trading and reduced listing activity as market revenue eased heated in the second trimester.

Profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) fell to HK$6.13 billion ($787 million) in the first six months of the year, missing analysts’ forecasts of HK$6.14 billion compiled by LSEG.

Its core revenue was flat in the first half of the year compared to a year earlier, but quarterly revenue from April to June rose 9% to $3.16 billion.

The results were supported by increases in trading and clearing fees from higher volumes in the cash, derivatives and commodities markets, according to HKEX’s earnings statement.

“Looking ahead, while macro-environmental uncertainties persist, we remain cautiously optimistic about the outlook for the rest of the year,” Chief Executive Officer Bonnie Chan said in the statement.

($1 = 7.7906 Hong Kong dollars)