Date
23 November 2017
HKEx chief executive Charles Li speaks at a news conference following the bourse operator's annual results announcement on Thursday. Photo: WSJ
HKEx chief executive Charles Li speaks at a news conference following the bourse operator's annual results announcement on Thursday. Photo: WSJ

HKEx 2014 profit up 13.5% on Stock Connect, LME clearing unit

Hong Kong Exchanges & Clearing Ltd. (HKEx, 00388.HK) reported a 13.5 percent jump in profit for 2014 as revenue rose amid a mutual market access program with the Shanghai bourse and a new metals-clearing subsidiary in London.

The company, which operates the Hong Kong stock exchange, said on Thursday that it reaped a net profit of HK$5.16 billion (US$665 million) for the year ended December.

Revenue grew 13 percent to HK$9.8 billion, as average daily trading volume on the local bourse expanded 11 percent to HK$69.5 billion.

The exchange benefited from the launch of the Shanghai-Hong Kong Stock Connect program in November, which allowed mainland individuals to buy stocks listed in Hong Kong and provided global investors freer access to Chinese stocks, the Wall Street Journal noted.

Though flows through the link in both directions have been lower than Beijing’s quotas, trading activity improved substantially as a result of the link, the exchange was quoted as saying.

The total revenue and other income generated by Stock Connect was said to be around HK$68 million.

During the year, HKEx also launched LME Clear, a new metals-clearing subsidiary in London, which has generated HK$187 million of clearing fees since September.

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