HKEX Posts Record H1 Revenue as China Optimism Fuels Trading Surge
Hong Kong Exchanges and Clearing reported its best-ever half-yearly revenue and profit, driven by record cash market volumes and strong derivatives performance.
Record Performance Across Markets
Hong Kong Exchanges and Clearing Limited reported its strongest-ever half-yearly financial performance, with revenue and other income reaching HKD 16.7 billion, up 19% year-over-year, and profit after tax of HKD 10.6 billion, a 24% increase (earnings call, 2026-08-19).
The results surpassed previous records set in the second half of 2025, driven by what CEO Bonnie Y Chan described as "renewed global investor interest in our markets" amid "optimism in China's outlook underpinned by exciting developments and innovation" (earnings call, 2026-08-19).
Trading volumes hit record half-yearly highs across all asset classes. Headline average daily turnover reached HKD 283 billion, up 18% from the prior year period, with second-quarter volumes accelerating further to HKD 289 billion (earnings call, 2026-08-19). Exchange-traded products contributed 17% of headline ADT in the first half, up from approximately 5% in 2021 (earnings call, 2026-08-19).
Stock Connect and Derivatives Momentum
Both Northbound and Southbound Stock Connect volumes reached all-time highs, with Northbound ADT more than doubling year-over-year (earnings call, 2026-08-19). Group CFO Herbert Hui attributed the surge to "strong interest in Chinese Mainland technology and AI-related stocks" and "active participation from both international and Chinese Mainland investors" (earnings call, 2026-08-19).
Derivatives and commodities markets also posted strong gains, with trading volumes increasing 6% and 18%, respectively. The London Metal Exchange recorded "chargeable ADV reaching a record half yearly high" (earnings call, 2026-08-19). Notably, stock options and Hang Seng TECH Index Futures and Options saw substantial volume increases.
Listing Pipeline and Capital Formation
Hong Kong ranked as the second-leading global IPO venue in the first half of 2026, with activity spanning technology, biotech, new energy, electric vehicles, consumer, and mining sectors (earnings call, 2026-08-19). Follow-on fundraising recorded its strongest first-half performance since 2021 (earnings call, 2026-08-19).
Chan noted that companies listed since 2025 contributed "more than 8% of the record headline ADT" in the first half (earnings call, 2026-08-19), highlighting the mutual reinforcement between capital formation and secondary market activity.
Strategic Expansion in Fixed Income and Commodities
HKEX continues advancing its multi-asset strategy with the launch of 5-year government bond futures, described as "the only China government bond futures contract available in the offshore market" (earnings call, 2026-08-19). USD Gold Futures saw trading volume and open interest reach record highs (earnings call, 2026-08-19).
The exchange plans to launch FDR007 contracts later this year, subject to regulatory approval, expanding its suite of RMB risk management products (earnings call, 2026-08-19).
Margins and Outlook
Operating expenses increased 6%, driven primarily by higher staff costs and IT investments, though HKEX maintained "an attractive EBITDA margin" reflecting "successful diversification" and "cost discipline" (earnings call, 2026-08-19). Excluding non-recurring items, OpEx rose 9% (earnings call, 2026-08-19).
Net investment income declined 11% to HKD 2.56 billion, reflecting higher margin rebates to participants and lower interest rates (earnings call, 2026-08-19). The Board declared a first interim dividend of HKD 7.43 per share, representing 90% of profit attributable to shareholders (earnings call, 2026-08-19). According to MarginX data, the dividend is payable September 1, 2026.
Recent MarginX data shows insider sales by directors Tao Zou (1.76 million shares) and Pak Kwan Kau (1 million shares).
This article was generated by MarginX from the earnings call on 2026-08-19. It is not investment advice.