Hong Kong Exchanges and Clearing saw profits drop in 2022 after a slump in trading and listing activities.
HKEX registered HK$10.1 billion ($1.3 billion) in profit attributable to shareholders in 2022, according to its annual report, down 20 percent year-on-year. This marks the first profit drop in six years.
Core business revenue fell 9 percent to HK$18.4 billion while operating expenses rose 12 percent to HK$5.1 billion. Average daily turnover decreased 26 percent to HK$109 billion after a record year for stock trading in 2021.
«The broader challenges of 2022 will likely persist into 2023 – inflationary pressures, geopolitical tensions, economic malaise, and the lasting effects of the Covid-19 pandemic,» said HKEX CEO Nicolas Aguzin.
Long-Term Outlook
In the longer term, HKEX is optimistic about opportunities, especially in mainland China, including decarbonization plans, the release of domestic savings, growth of investment flows and international participation in the economy.
«Moreover, the flourishing of innovation across the board, from green tech to fintech, in Asia, particularly in the Greater Bay Area, will continue to change the world in which we live,» Aguzin added.
«At HKEX, we are looking at this horizon of opportunity. In the year ahead, we will continue to create the building blocks for this next phase of development.»
