HKEX profit jumps to record high on surging IPOs and turnover, beating market estimates

Hong Kong’s bourse operator made US$683 million, a record-high profit in the second quarter, beating its own record a quarter earlier

Hong Kong Exchanges and Clearing (HKEX) profit jumped to a record amid a boom in initial public offerings (IPOs) and sizzling stock market turnover in the second quarter, according to a stock exchange filing on Wednesday.

Quarterly net profit for the operator of Asia’s third-largest stock market soared 21 per cent year on year to HK$5.38 billion (US$683.4 million), or HK$4.26 per share, higher than analysts’ estimate of HK$4.96 billion.

It was the second consecutive quarter of record profit for HKEX, after it cleared HK$5.19 billion profit in the first quarter.

The exchange operator also reported that its first-half profit rose 24 per cent to a record of HK$10.57 billion, beating analysts’ estimates of HK$10.15 billion and surpassing last year’s record half-yearly earnings of HK$8.52 billion.

HKEX will pay an interim dividend of HK$7.43 per share, 24 per cent higher than HK$6 a year earlier.