Hong Kong Exchange Operator's Net Profit Slips as Trading Activity Cools

By Kimberley Kao

Hong Kong Exchanges & Clearing's third-quarter profit fell unexpectedly despite revenue growth as trading activity in the Asian financial hub showed signs of moderation.

The stock-exchange operator said Friday that net profit edged 0.8% lower to 4.86 billion Hong Kong dollars, equivalent to US$619.8 million. That missed the HK$5.03 billion consensus estimate of analysts in a Visible Alpha poll.

Revenue and other income rose by a smaller-than-expected 1.2% from a year earlier to HK$7.87 billion.

HKEX witnessed a decline in trading volumes during the quarter, with the headline average daily turnover down 11% to HK$254.2 billion, it said.

Higher trading and clearing fees from increased commodities market and Northbound Stock Connect volumes helped cushion the bottom line, as did a rise in listing fees, HKEX said.

Funds raised from 118 new listings in the city during the first nine months of the year more than doubled to HK$388.4 billion, a record for the period, according to the exchange operator.

In the third quarter, 31 new listings raised a total of HK$176.0 billion, more than double the amount of funds raised a year earlier.

HKEX shares were down 1.7% at midday, taking losses this year to around 5%.

Ahead of the results, Michael Zhang of Citi Research said softer market sentiment and moderating equity trading activities were expected to weigh on profits.

"With global investors rethinking their capital allocation strategies, this is a defining moment for Hong Kong's markets," said Bonnie Y Chan, chief executive of HKEX.

"As we navigate heightened macro uncertainties and ongoing volatility, our conviction in building a deeper and more diverse multi-asset ecosystem has only strengthened."

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

November 05, 2026 23:55 ET (04:55 GMT)