HKEX registered a new record-high in annual profits for 2021 as a strong increase in market turnover helped offset a decline in investment income and IPOs.
HKEX posted HK$1.6 billion of profit for 2021, according to an exchange filing, marking an 8.8 percent year-on-year increase.
Despite the new high in annual profit – driven by record revenue of HK$19.5 billion (up 16 percent) – this fell short of a consensus forecast for a 14 percent increase, according to a Bloomberg compilation of analysts.
Daily Turnover
The Hong Kong bourse was dependent on a strong increase in daily turnover and clearing fees to offset a drop in investment income (48 percent decrease to HK$1.4 billion) and new stock offerings (17 percent decrease to HK$331.4 billion, the first decline since 2017).
Average daily turnover grew 29 percent to HK$166.7 billion, with significant contributions from the cross-border stock scheme with Shanghai and Shenzhen.
The northbound channel (international investors of mainland-listed shares) grew nearly one-third to 120.1 billion yuan ($19 billion) while the southbound channel (mainland investors of Hong Kong-listed shares) grew 71 percent to HK$41.7 billion.
«HKEX had a strong year in 2021, despite a turbulent macro backdrop and the ongoing pandemic,» said HKEX chief executive Nicolas Aguzin in the filing.
