HKEX Posts Record $849 Million Profit in H1 with Trading Boost

Hong Kong Exchanges and Clearing (HKEX), which operates Asia’s largest stock market by market cap, has published its first half-yearly results for 2021, reporting a record in revenue and profits. According to the bourse operator, its revenue for the period came in at HK$10.06 billion (around $1.3 billion) compared with HK$7.94 billion ($1.02 billion) a year earlier.

In addition, the heightened revenue resulted in a record income as the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s profits for the period reached HK$6.61 billion ($849.39 million). This was a 26 percent jump from last year’s HK$5.23 billion.

Trading Boost

The 27 percent jump in revenue was boosted by the market volatility and the listing of several large Chinese companies on the exchange. The announcement revealed that the average daily turnover for securities on the exchange jumped by 60 percent year-over-year to reach HK$188.2 billion. Moreover, activities on the derivatives markets increased but only by a marginal 3 percent.

“Markets throughout the first half of the year have remained volatile, reflecting concerns over the path to recovery from the pandemic, continued fragile global geopolitics and concerns over rising inflation levels around the world,” HKEX Chairman, Laura Cha said in the results filing.

“HKEX has successfully both maintained its resiliency and driven new market and product initiatives and programs.”

However, performance in the second quarter slowed down from the quarterly record it achieved in Q1 of 2021. But, both the quarterly figures remained strong when compared to the numbers of the previous year.

Wednesday’s filing elaborated that Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term trading fees and tariffs contributed the largest part to the revenue. However, the exchange is in a constant push to broaden activities in derivatives, fixed income and commodities markets.

The basic earnings per share of the exchange jumped 26 percent to HK$5.22. Furthermore, it has decided to distribute an interim dividend of HK$4.69 per share, compared with HK$3.71 last year.