Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third-largest stock exchange, reported another record year in terms of annual profits that jumped 9 percent to HK$12.54 billion (US$1.6 billion). The per-share earnings for the year came in at HK$9.9, trailing the consensus analyst forecast by 14 percent.
The revenue of the exchange operator from its core business came in at HK$20 billion, which is up 10 percent from the previous year. This figure was mainly benefited from the higher trading and clearing fees that increased by 29 percent in average daily turnover to HK$166.7 billion.
Average daily turnover on the exchange jumped on cash equities jumped by 32 percent, along with a 4 percent and 12 percent increase in stock listing fees and market data fees, respectively.
“HKEX had a strong year in 2021, despite a turbulent macro backdrop and the ongoing pandemic,” said Nicolas Aguzin, the CEO of HKEX. “Revenue and other income and profit both reached record highs.”
Dull Q4
Despite the impressive yearly performance that was mostly dragged by the performance of Q1, the numbers for the final quarter of the year remained dull. The net income for the quarter ended in December dropped by 8.6 percent year-over-year to HK$2.67 billion ($342 million).
The exchange facing a dent in its performance due to the Chinese crackdown on technology giants and debt-ridden developers. Hong Kong, which is also one of the favorite markets for Asian companies to go public, saw a sharp decline in the number of initial public offerings (IPOs) on the bourse.
HKEX saw a decline in the IPO proceeds last year since 2017 as 98 listings raised HK$331.4 billion, a total of 17 percent.
The Chairman of HKEX, Laura Cha, said: “The global economic recovery is expected to continue throughout 2022, although numerous challenges posed by uncertainty surrounding the pandemic recovery, ongoing geopolitical risks, restrictions on travel, and upcoming interest rate hikes will all affect our business in the year ahead.”
