Date
25 July 2017
HKEx chief executive Charles Li said the exchange is not actively looking for acquisitions. Photo: Bloomberg
HKEx chief executive Charles Li said the exchange is not actively looking for acquisitions. Photo: Bloomberg

HKEx net profit surges 54% to a record US$1 bln

Hong Kong Exchanges & Clearing Ltd. (00388.HK) said full-year earnings rose to a record on higher trading turnover.

Net income jumped 54 percent to HK$7.96 billion (US$1 billion) last year, up from HK$5.17 billion a year earlier, Bloomberg reported, citing a statement from the exchange.

Revenue increased 36 percent to HK$13.38 billion during the period. Analysts were expecting net income of HK$8 billion, according to data compiled by Bloomberg.

HKEx’s fourth-quarter net income and revenue were little changed from the year-ago period, at HK$1.5 billion and HK$2.8 billion, respectively, according to Bloomberg calculations using the full-year and nine-month reports.

HKEx’s shares rose 3.5 percent to close at HK$175 on Wednesday.

Equity daily trading fell to an average HK$71.9 billion in the fourth quarter from HK$101.5 billion three months earlier.

The average daily number of options contracts traded also fell in the fourth quarter to 334,000. The average number of futures contracts dropped to 308,000 from 323,000 in the third quarter.

The bourse, which plans to introduce new index and currency futures, said it saw its average daily stock-trading turnover rise 52 percent to HK$105.6 billion in 2015.

Daily trading has averaged about HK$72.5 billion this year, 13 percent lower than in the same period a year earlier, according to data compiled by Bloomberg.

At a press conference on Wednesday, Chief executive Charles Li declined to comment on whether HKEx plans any acquisitions.

“We have a solid portfolio of organic growth and also external growth that we actually can be solely responsible without having to pay anybody,” Li said.

“We are not actively looking for something just to add on to portfolios.”

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RA/CG

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