Hong Kong’s stock exchange operator, HKEX (HK:0388), clocked a sharp jump in its third-quarter earnings on Wednesday as the firm benefited from robust trading volumes and a rebound in IPO activity.
HKEX’s profit for the three months ended September 30 jumped 56% to HK$4.9 billion ($628 million). The print was the exchange operator’s best quarterly profit, after it also logged a record-high profit in the second quarter.
Revenue jumped 54% to HK$7.48 billion in the third quarter.
The strong earnings were fueled chiefly by a 150% jump in average daily turnover in equities traded on the Hong Kong Exchange, to HK$267.9 billion.
Strong trading volumes came amid a technology-fueled rally in Hong Kong markets through the third quarter, as investors cheered China’s artificial intelligence ambitions.
Two bumper initial public offerings during the quarter also benefited HKEX, after Chery Automobile Co Ltd (HK:9973) and Zijin Gold International Co Ltd (HK:2259) listed in Hong Kong markets during the quarter.
Data from KPMG showed Hong Kong IPO funds raised during the nine months to September 30 jumped to $23.6 billion from $7.2 billion a year ago.
