Hong Kong Exchanges and Clearing Limited (HKEX) today posted its financial report for the final quarter of 2022.

Q4 2022 revenue and other income of $5,201 million was 10% higher than the level reported for Q4 2021, reaching record fourth quarter high.

Core business revenue was up 7% against Q4 2021, attributable to the increase in net investment income from Margin Funds. Net investment income on Corporate Funds rose 52% against Q4 2021 due to higher interest income and higher fair value gains of the External Portfolio, but was partly offset by a non-recurring valuation gains of long-term equity investments in 2021.

EBITDA margin remained the same at 74%.

Profit attributable to shareholders was $2,979 million, 11% higher than Q4 2021, reaching record fourth quarter high.

The volatile macro environment during 2022 continued to impact trading and volumes across global markets, and Hong Kong was no exception. However, market sentiment began to improve in the fourth quarter, resulting in a strong end to the year for HKEX.

Throughout the year HKEX saw strong performance in the Hong Kong Derivatives Market, with new trading records set across its USD/CNH Futures and a number of other individual derivatives products. Trading through Stock Connect remained resilient, and Northbound Bond Connect trading continued to record new highs in trading volume and number of investors.

Driven by the renewed momentum in our IPO market in the second half of the year, Hong Kong remained as one of the world’s most active IPO fundraising hubs, raising a total of $104.6 billion in 2022.

The chargeable average daily volume of metals contracts traded on the LME decreased by 7 per cent from 2021, amid challenging market conditions.

Total revenue and other income of the Group, for the year ended 31 December 2022, amounted to $18,456 million and the profit attributable to shareholders was $10,078 million, down 12 per cent and 20 per cent respectively, from the record highs in 2021.

The Board declared payment of a second interim dividend of $3.69 per share, wholly in cash, which, together with the first interim dividend of $3.45 per share paid in September 2022, results in a full-year dividend of $7.14 per share.