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Updated February 29th, 2024 at 12:37 IST

HKEX reports 18% profit increase, yet falls below forecasts due to trading downturn

The exchange's net investment income from corporate funds notably improved, shifting from a loss to a gain.

Reported by: Business Desk
HKEX 2023 profit misses forecast
HKEX 2023 profit misses forecast | Image:Shutterstock

HKEX Profit Rises: Hong Kong's stock exchange operator announced a profit increase of 18 per cent for the year 2023, but it fell short of expectations due to reduced trading and listing activities amidst tough economic conditions in the Asian financial hub.

Various factors including China's economic slowdown, strict regulatory measures affecting fundraising for large companies, and geopolitical tensions led to a challenging environment for new listings in Hong Kong.

Despite efforts to attract capital and businesses back to the city through announced measures, Hong Kong Exchanges and Clearing Ltd (HKEX) saw its profit attributable to shareholders rise to HK$11.86 billion ($1.52 billion) last year, which was less than the anticipated increase.

The exchange's net investment income from corporate funds notably improved, shifting from a loss to a gain. However, the IPO market in Hong Kong witnessed a decline in activity, with only 73 company listings raising HK$46.3 billion in 2023, marking a drop from the previous year.

Additionally, the average daily turnover of equity products traded on the Hong Kong stock exchange decreased by 14 per cent to HK$93.2 billion compared to the previous year, reflecting subdued market sentiment amidst global economic and geopolitical challenges.

(With Reuters Inputs)

Published February 29th, 2024 at 12:37 IST

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