Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third-largest stock market, reported a record-breaking net profit of HK$4.08 billion (US$526 million) for the first quarter of 2025, marking a 37% increase compared to the previous year. Earnings per share reached HK$3.23, surpassing analysts’ expectations of HK$3.99 billion, and exceeding its previous profit peak of HK$3.84 billion set in Q1 2021. This performance was driven by a resurgence in IPO activity, higher trading volumes, and growing investor enthusiasm for Chinese technology stocks, especially in the wake of advances in artificial intelligence.
HKEX’s CEO Bonnie Chan Yiting credited the growth to a renewed global appetite for China-related opportunities, particularly those in AI and innovation sectors. This momentum began in the second half of 2024 and has carried into 2025, highlighting the appeal of Hong Kong as a capital-raising hub. During the quarter, Hong Kong ranked among the top five global IPO destinations and saw two of the largest follow-on offerings since April 2021. There are currently 120 listing applications in the pipeline, signaling sustained market interest.
The exchange’s total revenue soared 36% year-on-year to a record HK$6.9 billion, beating consensus forecasts of HK$6.77 billion. A significant driver was a sharp 144% increase in average daily trading turnover to HK$242.7 billion, boosting trading and clearing fees by 60%. Listing fees also rose by 12%, and IPO activity continued to rebound, with 15 companies raising US$2.3 billion—marking the strongest quarter for fundraising since Q2 2021.
Southbound trading via the Stock Connect program saw a 255% surge in average daily turnover to HK$109.9 billion, while northbound trading climbed 44% to 191.1 billion yuan (US$26.3 billion). This inflow of capital from mainland China helped fuel the trading boom and reinforced Hong Kong’s position as a gateway for global investors.
HKEX also posted a net investment gain of HK$516 million from its equity and bond portfolio, though this was a 4% decrease year-on-year. Meanwhile, derivatives trading rose 5% to 901,000 contracts per day. The London Metal Exchange, owned by HKEX, also experienced growth, handling an average of 698,000 metal contracts daily—a 6% increase.
HKEX shares rose 1.6% to HK$340.80 following the announcement and have gained 16% this year, outperforming the Hang Seng Index’s 9.9% rise.
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