HKEX registers 18% Y/Y drop in revenues in H1 2022
Hong Kong Exchanges and Clearing Limited (HKEX) today reported its financial results for the first half of 2022.
In the first half of 2022, global financial markets were characterised by high levels of volatility and weak market sentiment, reflecting economic fragility, geopolitical tensions, inflationary pressures and the continuing impact of the pandemic.
Amid the uncertain and volatile market conditions, the average daily turnover in Hong Kong’s securities market ($138.3 billion) decreased by 27% from the half-yearly record high in the first half of 2021, while the average daily turnover of ETFs ($9.7 billion) and the average daily volume of futures and options traded on the derivatives market (1,308,817 contracts) increased by 59% and 8% respectively.
Despite a slowdown in IPO activity globally during the first six months of 2022, in Hong Kong the IPO pipeline remained strong. Stock Connect trading remained resilient during the first half of the year, while Northbound Bond Connect trading continued its strong track record of growth, with average daily turnover reaching RMB31.2 billion, up 17% year-on-year.
The chargeable average daily volume of metals contracts traded on the LME was broadly in line with the same period last year. Following the unprecedented events in the nickel market in March 2022, the LME has been working closely with regulators and other stakeholders to put in place additional measures to promote market stability and enhance the efficiency and resilience of the market.
Following the implementation of interim measures, such as the introduction of daily price limits, and following market consultation, the LME has announced introduction of new weekly OTC position reporting requirements and extended accountability levels to include OTC positions. An independent review of the nickel market events in March, undertaken by Oliver Wyman, is also under way.
For the six months ended 30 June 2022, the Group recorded total revenue and other income of $8,937 million and profit attributable to shareholders of $4,836 million, down 18% and 27% respectively from the record levels in prior year.
The Board declared an interim dividend of $3.45 per share, payable in cash.
On the product front, HKEX has continued to enhance its mutual market connectivity and expand the breadth and diversity of its product ecosystem.
The inclusion of eligible ETFs in Stock Connect since 4 July 2022 marked another milestone in the mutual market access programmes, further deepening connectivity between Hong Kong and Mainland China’s capital markets and supporting the continued development of the region’s ETF ecosystem. With the rollout of the first blockchain ETF, first metaverse-themed ETF, first carbon futures ETF and first pure-play Hong Kong equity ESG ETF during the period, HKEX’s ETF offering has strengthened and diversified.
HKEX also introduced a new SPAC route to market and enhanced HKEX’s listing regime for overseas issuers on 1 January 2022. HKEX is currently conducting a study on revising the listing requirements to meet the fundraising needs of specialist technology companies and will put forward proposals for market consultation as appropriate.