Overview
Hong Kong Exchanges & Clearing recently reported a decrease in quarterly net profit, marking the first decline in over a year. This drop was attributed to weak trading activity amidst poor market sentiment.
Financial Figures
For the fourth quarter, the net profit decreased by 13% compared to the same period the previous year, amounting to HK$2.60 billion (US$332.1 million). This figure fell short of the estimated HK$2.71 billion based on a FactSet poll. Core revenue also saw a decline of 5%, reaching HK$4.52 billion in the fourth quarter. The decrease was primarily due to reduced trading and clearing fees from cash and derivatives markets, offset slightly by an increase in fees from London Metal Exchange and higher net investment income from margin funds and clearing house funds.
Trading Activity
HKEX witnessed a significant decrease in headline average daily turnover, which dropped by 28% to HK$91.0 billion in the fourth quarter.
Future Outlook
Despite the challenging macroeconomic and geopolitical landscape, HKEX’s Chief Executive Officer, Nicolas Aguzin, expressed cautious optimism for the future. He mentioned that as sentiment improves, the company is well-positioned to benefit from the global shift towards Asia.