Hong Kong’s stock exchange, the Hong Kong Exchanges and Clearing Ltd, reported record quarterly profits, surpassing estimates fueled by a surge in trading activities and a wave of new listings. The net income for the first quarter ending March 31 stood at HK$4.08 billion, marking a significant 37% increase from the previous year.
The CEO of HKEX, Bonnie Chan, attributed this success to the growing global interest in Chinese opportunities, particularly in the realms of artificial intelligence and innovation. The exchange’s quarterly revenue soared by 32% to HK$6.86 billion, outperforming the previous record set in 2021.
Throughout the quarter, the core business revenue witnessed a remarkable 36% surge, primarily driven by increased trading and clearing fees from higher volumes in stocks, derivatives, and commodities. The cash trading turnover in Hong Kong more than doubled year-to-date, averaging HK$249 billion, with a peak reaching HK$621 billion in early April.
A promising sign for the market is the anticipation of several secondary listings in the coming year. One of the most anticipated listings is the potential $5 billion-plus offering by battery manufacturer Contemporary Amperex Technology Co Ltd, which could be the largest globally in 2025.
Notably, 17 companies debuted on the exchange in the first quarter, a significant increase from the previous year. The total fundraising also experienced a substantial surge, signaling a positive trend in market activities. Hong Kong’s stock exchange shares have seen a 16% increase this year, outperforming the Hang Seng Index’s 10% rise.
The positive performance of HKEX reflects the renewed enthusiasm for China-focused opportunities, which gained traction in the latter part of 2024 and continued to strengthen throughout 2025. The market volatility and the flurry of local listings have contributed to the exchange’s robust financial results.
Industry experts predict a continued upward trajectory for Hong Kong’s stock exchange, with expectations of sustained growth driven by the evolving landscape of global markets and the increasing attractiveness of Chinese investments. The exchange’s ability to capitalize on these trends positions it favorably in the competitive financial landscape.
The market’s resilience amidst external challenges and the continuous influx of mainland tourists further bolster the confidence in Hong Kong’s financial sector. As the exchange continues to attract new listings and investors, it cements its status as a key player in the global financial arena.
In conclusion, the record-breaking quarterly profits of the Hong Kong Stock Exchange underscore its resilience, adaptability, and relevance in the ever-evolving financial markets. With a strategic focus on innovation and technology, coupled with a vibrant ecosystem of listings and trading activities, the exchange is poised to maintain its growth trajectory and solidify its position as a leading global financial hub.