HKEX Beats Estimates with Landmark First-Half Net Income of HK$10.57 Billion

Hong Kong Exchanges and Clearing (HKEX) achieved unprecedented financial performance in the second quarter, buoyed by a surging initial public offering (IPO) market and elevated equity trading volumes, according to an official regulatory filing on Wednesday.

The venue operator, which oversees Asia’s third-largest equity market, posted a 21 percent year-on-year surge in second-quarter net income to HK$5.38 billion (US$686 million), or HK$4.26 per share. This figure comfortably surpassed the consensus estimate of HK$4.96 billion. The performance marked a second consecutive quarter of historic profitability, surpassing the HK$5.19 billion recorded in the preceding quarter.

For the first six months of 2026, total net profit climbed 24 percent year-on-year to a record HK$10.57 billion, exceeding market forecasts of HK$10.15 billion and outperforming the previous first-half record of HK$8.52 billion set a year earlier. Total revenue and investment income for the six months expanded 19 percent to reach HK$16.7 billion. In light of these earnings, HKEX declared an interim dividend of HK$7.43 per share, representing a 24 percent increase from the HK$6 payout distributed in the prior-year period.

Chief Executive Officer Bonnie Chan Yiting—whose tenure was extended through February 2030 on Tuesday—noted in the earnings statement that the group achieved landmark half-year figures across both top-line revenue and net earnings. She stated that while macroeconomic and geopolitical volatility remains, the long-term outlook for Hong Kong and the exchange remains robust as international capital continuously seeks exposure to mainland China's innovation sectors and broader Asian economic expansion.

Ahead of the afternoon financial announcement and media conference, HKEX shares advanced 0.3 percent to close at HK$406.4 at the midday trading break. The stock has experienced a year-to-date decline of 1.4 percent, tracking the performance of the benchmark Hang Seng Index.

Second-quarter top-line performance—comprising revenue and net investment returns—grew 18 percent year-on-year to a record HK$8.5 billion, outpacing institutional forecasts of HK$7.9 billion. This expansion was primarily driven by core operational income, as trading and clearing fees expanded 18 percent over the first half. Average daily turnover (ADT) rose 22 percent to HK$290 billion in the second quarter, bringing the first-half ADT to HK$283 billion, an 18 percent increase year-on-year.

Cross-border capital flows via the Stock Connect scheme recorded substantial volume increases during the first half. ADT through the southbound link, which grants mainland China investors access to Hong Kong-listed equities, grew 11 percent to HK$123.1 billion. Concurrently, northbound trading activity—allowing international investors to trade mainland securities—more than doubled, surging 102 percent to 345.3 billion yuan (US$51.2 billion).

Primary market activity experienced a significant resurgence, driving first-half listing fee revenue up 36 percent to HK$590 million. Total capital raised through Hong Kong IPOs surged 92 percent year-on-year to HK$210.2 billion during the six months. Despite this growth, LSEG Data & Analytics metrics indicate that Hong Kong trailed Nasdaq in global IPO fundraising rankings, following a major listing by SpaceX in June.

HKEX also reported net investment income of HK$1.08 billion from its corporate investment portfolio of global equities and fixed-income assets in the first half, reflecting a 4 percent year-on-year gain. Derivatives trading posted steady growth, with average daily contract volumes for futures and options rising 6 percent to 1.8 million contracts. Meanwhile, the London Metal Exchange (LME), a wholly owned subsidiary of HKEX, recorded an 18 percent increase in daily trading activity, averaging 844,000 metal lots per day over the first half.