Hong Kong Exchanges and Clearing Limited

HKEX reported first-half 2026 revenue and other income of HKD 16.7 billion, up 19% year over year. Profit after tax was HKD 10.6 billion and EPS was HKD 8.36, both up 24% year over year. Headline ADT rose 18% to HKD 283 billion, while derivatives trading volumes increased 6% and commodities trading volumes increased 18%. Q2 2026 revenue and profit increased 18% and 21%, respectively, versus Q2 last year, and headline ADT in Q2 reached a record quarterly high of HKD 289 billion. Net investment income for the half was HKD 2.56 billion, down 11% year over year, and operating expenses increased 6%. The Board declared a first interim dividend of HKD 7.43 per share, representing 90% of profit attributable to shareholders excluding HKEX Foundation. Management did not provide formal numeric full-year guidance, but said second-half net investment income will remain affected by revised margin collateral arrangements, fluctuating margin fund size, and Hong Kong dollar interest rates.

Bonnie Y Chan struck an upbeat tone, saying HKEX delivered an “exceptional” first half and that Hong Kong’s markets have “regained their vibrancy.” She emphasized execution from here: sustaining momentum, improving competitiveness, building a broader multi-asset ecosystem, and strengthening regional connectivity. Her comments framed the strategy around capital formation, secondary-market depth, and product expansion across equities, fixed income, commodities, derivatives, indices, and data.

Herbert Hui highlighted the hard numbers behind the record half, including HKD 16.7 billion of revenue and other income, HKD 10.6 billion of profit after tax, and EPS of HKD 8.36. He said the growth came from record trading volumes, higher trading and clearing fees, and increased depository and listing fees, partly offset by lower net investment income from margin funds. OpEx rose 6%, mainly due to staff costs, IT costs, and foundation donations, with the comparison also affected by a HKD 90 million FCA fine paid in 2025 and a HKD 24 million insurance claim received in 2026.

Analysts focused on three themes: possible expansion of cross-border channels, the growth outlook for ETPs, and how HKEX views competition and liquidity from longer trading hours and A-share/H-share IPO flows. Management said it is working on added Connect features, including REIT Connect and a Southbound RMB counter, and noted the new Mainland policy allowing insurance companies to invest in Hong Kong-listed ETFs through Connect. On trading hours, management said the priority is market accessibility rather than simply longer hours, and that the cash market still faces participant-readiness and liquidity-spread considerations, while derivatives after-hours expansion is the nearer-term focus. On IPOs, HKEX argued A-share and H-share markets are complementary rather than competitive, citing strong follow-on fundraising and a healthy pipeline that includes both Mainland and non-Chinese issuers.