HKEx Profits Surge
Friday, May 13, 2011

Hong Kong Exchanges and Clearing saw a 10% year-on-year surge in profit attributable to shareholders in the first quarter this year to HKD1.238bn (USD160m).

According to the first-quarter results announced on May 11, HKEx recorded income of HKD1.907bn, up 11% on a year earlier, while operating expenses rose 15% to HKD442m.

The average daily turnover value on the Stock Exchange was HKD75.9bn, 17% higher than the same period last year. The average daily number of derivatives contracts traded on the Futures Exchange and stock options contracts traded on the Stock Exchange also grew 17% and 46% to 246,687 and 299,477.

In the first quarter, 14 companies were newly listed on the Main Board, and three on the Growth Enterprise Market. Total capital raised including post-listing funds reached HKD66.7bn.

As at March 31 there were 1,258 and 168 companies listed on the Main Board and Growth Enterprise Market respectively with a total market capitalization of HKD21.4 trillion.

There were 5,689 Derivative Warrants, 974 Callable Bull Bear Contracts, eight Real Estate Investment Trusts, 72 exchange-traded funds and 170 debt securities listed as at March 31. The average daily turnover in the first quarter was HKD75.6bn on the Main Board and HKD364.8m on Growth Enterprise Market. HKEx's senior management said that the exchange would continue to capitalize on Hong Kong's position as China's financial centre and would seek to introduce more exchange products denominated in the Chinese currency, the renminbi (RMB).

Currently, three RMB-denominated debt securities are listed and available for trading on the Exchange, and on April 29, 2011, the successful listing of Hui Xian REIT on the Exchange marked an important milestone as the first IPO and listing of an RMB-denominated REIT. "HKEx will continue to work closely with issuers, brokers and regulators on the introduction of other RMB-denominated products," said Charles Li Xiaojia, HKEx Chief Executive, in the exchange's quarterly report for the three months to the end of March. "However, the long-term growth and stability of an RMB stock market segment is subject to the challenge of sufficient and reliable RMB liquidity in Hong Kong. In this regard, HKEx plans to introduce an RMB equity Trading Support Facility in the second half of this year, pending regulatory approval, to facilitate trading in RMB-denominated shares in the secondary market."