Hong Kong exchange posts record revenue on listing boom
The logo of Hong Kong Exchanges & Clearing (HKEX) is pictured in its office, in Hong Kong on Jun 10, 2025. (File photo: Reuters/Tyrone Siu)
HONG KONG: Hong Kong's stock exchange operator reported its best half-year revenue on Wednesday (Aug 20), bolstered by a surge in initial public offerings and trading activity.
The Chinese finance hub has weathered a prolonged slump in IPOs since 2020, with many major firms putting their listing plans on hold in light of a regulatory crackdown by Beijing.
But analysts are expecting Hong Kong to reclaim the crown this year as more and more Chinese companies pivot to list in the city amid broader geopolitical tensions.
Hong Kong Exchanges and Clearing (HKEX) on Wednesday reported a revenue record of HK$14.1 billion (US$1.8 billion) for the first half of 2025, up 33 per cent from the same period last year.
Profit attributable to shareholders rose 39 per cent to HK$8.52 billion, the statement said.
It added that the average daily turnover from trading of equity products during the period was HK$222.8 billion, up 122 per cent on-year.
The bourse attributed the strong results to renewed investor interest in China-related assets, which is driven by optimism in the country's economic outlook and supportive policies, as well as developments in artificial intelligence.
In a statement, HKEX chairman Carlson Tong warned that despite "tariffs, geopolitical risks and interest rate fluctuations", he was "cautiously optimistic about the outlook for the second half of the year".
This year's surge in IPOs was "reinforcing Hong Kong as a listing venue of choice for issuers seeking to raise funds from both Mainland and international investors", Tong said.
Contributing to the buzz in Hong Kong's capital markets have been several blockbuster listings by Chinese companies, including battery giant CATL, pharmaceutical firm Jiangsu Hengrui and soy sauce maker Foshan Haitian.
The exchange saw 44 new listings during the first half of the year that raised a total of HK$109.4 billion, up 716 per cent year-on-year, Wednesday's statement said.
And HKEX is processing more than 200 listing applications, its database shows, a sign of further momentum.
In early August, HKEX eased some of its IPO rules for China-listed companies seeking to raise overseas capital in Hong Kong, including by lowering the minimum public float requirement.
Singapore-based e-commerce titan Shein has considered moving back to China to boost a Hong Kong listing bid, Bloomberg reported Tuesday, after the firm's other IPO plans in New York and London stalled.
HKEX shares have risen nearly 50 per cent this year.
