HKEX posts record quarterly profit on trading, listings boom
[HONG KONG] Hong Kong's stock exchange churned out a record profit last quarter and beat estimates, as the bourse rode a trading boom spurred by global market volatility and a spate of local listings.
Hong Kong Exchanges and Clearing Limited (HKEX) reported net income of HK$4.08 billion (S$687 million) in the three months ending Mar 31, up 37 per cent from a year earlier, according to a statement on Wednesday (Apr 30). That was ahead of the HK$3.98 billion average estimate of four analysts.
'The renewed global interest in China opportunities that picked up in the second half of 2024 continued to build momentum into 2025, boosted by exciting developments in artificial intelligence and innovation,' HKEX chief executive officer Bonnie Chan said.
The bourse's trading and listings have picked up since late 2024 after China signalled greater support to the private sector, and as US President Donald Trump's to-and-fro on tariffs created big bouts of market volatility.
Hong Kong's dealmakers are optimistic of a flurry of secondary listings from mainland-traded Chinese firms this year. That would build on the Chinese government's stimulus measures. Among closely-watched listings is battery maker Contemporary Amperex Technology Co Limited's mooted US$5 billion-plus offering, which may become the largest globally in 2025.
HKEX's quarterly revenue jumped 32 per cent to HK$6.86 billion. The latest profit surpassed the previous record of HK$3.84 billion set in the first quarter of 2021. The exchange's shares have risen 16 per cent this year versus a 10 per cent increase in the city's benchmark Hang Seng Index.
Core business revenue surged 36 per cent in the latest quarter from a year earlier, reflecting an increase in trading and clearing fees from higher volumes in stocks, derivatives and commodities.
Hong Kong's cash trading turnover has more than doubled to an average of HK$249 billion year-to-date from the year-earlier period. It surged to a new high of HK$621 billion in early April.
A total of 17 companies debuted on the exchange in the first quarter, up from 12 a year earlier, and total fundraising surged, HKEX said. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
4 hours ago
- CNA
US and China set for trade talks in London on Monday
WASHINGTON: Three of US President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday (Jun 9) for talks aimed at resolving a trade dispute between the world's two largest economies that has kept global markets on edge. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent the United States in the talks, Trump announced in a post on his Truth Social platform without providing further details. China's foreign ministry said on Saturday that vice premier He Lifeng will be in the United Kingdom between June 8 and June 13, adding that the first meeting of the China-US economic and trade consultation mechanism would be held during this visit. "The meeting should go very well," Trump wrote. Trump spoke to Chinese President Xi Jinping on Thursday in a rare leader-to-leader call amid weeks of brewing trade tensions and a dispute over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most US trading partners. China, meanwhile, has seen its own supply of key US imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump returned to the presidency in January. That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 stock index, which at its lowest point in early April was down nearly 18 per cent after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2 per cent below its record high from mid-February. The final third of that rally followed the US-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. China sees mineral exports as a source of leverage. Halting those exports could put domestic political pressure on the Republican US president if economic growth sags because companies cannot make mineral-powered products. In recent years, US officials have identified China as its top geopolitical rival and the only country in the world able to challenge the United States economically and militarily.
Independent Singapore
4 hours ago
- Independent Singapore
From bromance to blow-up: Trump and Musk's bitter spat
The most ballyhooed bromance on earth blew up in spectacular fashion on Thursday when the world's most powerful leader traded barbs online with the world's richest man. In the middle of a meeting with the German chancellor, US President Donald Trump posted that he was 'disappointed in Elon', stung by the tech tycoon's unrelenting criticism of his 'big, beautiful bill'. The spat between these high-profile bromates lit up the internet, with live-blogging websites offering tweet-by-tweet updates, and others speculating—sometimes behind paywalls—on whether the erstwhile bosom buddies had become bitter enemies. Only the most incorrigible punters would dare wager whether the rift is permanent or passing. Given their mercurial temperaments, today's feud could easily become tomorrow's flirtation. Supporters of strong governance may, nevertheless, be relieved. The world's most powerful leader is still more potent than its richest man—at least for now. Musk blinked first. Musk indicated on X he is ready to relent, but the White House has turned a cold shoulder. The president reportedly continues to criticise the Tesla, X and SpaceX boss in private. Costly spat The spat could prove costly for both men. While Trump and his political action committees may not receive the $100 million or more reportedly pledged by Musk, the tycoon risks losing billions. Trump has threatened to cancel his government contracts, posting: 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was always surprised that Biden didn't do it.' The rift widened after Musk lambasted Trump's signature tax-and-spending bill, calling it a 'disgusting abomination' sure to wreck the nation's finances. To add insult to injury, he claimed Trump wouldn't have won the election without his support. Trump said he was 'very disappointed in Musk,' accused him of turning 'hostile' after being turfed out of government, and charged that the billionaire was meddling in politics to further his business interests. Musk, who spent over $250 million supporting Trump's re-election bid last year and once declared, 'I love @realDonaldTrump as much as a straight man can love another man,' hit back hard. He called for Trump's impeachment and replacement by Vice President JD Vance and warned that the president's tariffs could trigger a US recession. See also Hillary Clinton urges Biden not to concede in close election He also insinuated that Trump's name appeared in sealed files relating to the late sex offender Jeffrey Epstein. Still, Musk eventually toned down his rhetoric. After threatening to decommission his Dragon spacecraft, which NASA uses to transport astronauts, he responded to a netizen urging calm with: 'Good advice… Ok, we won't decommission Dragon.' His conciliatory tone, however, received no response from the White House. Trump may struggle to find alternatives if he scraps contracts with Musk's companies. SpaceX remains the only US firm transporting astronauts to and from space. Several government agencies also depend on its Falcon rockets, in-orbit vehicles, and the Starlink network—more than 7,500 internet satellites, which Ukraine has used in its war against Russia. Media pundits are almost unanimous in concluding that the bromance was doomed from the start—doomed by two towering egos unwilling to share the spotlight. Ideological divide? But Guardian columnist Jonathan Freedland sees more than just a personality clash. He believes there is also an ideological divide. See also Trump and Biden outline competing visions for US economy Musk's opposition to Trump's 'big, beautiful bill' may be linked to its failure to extend tax credits for electric vehicles—a provision that might have boosted Tesla's sagging sales. Publicly, however, Musk has criticised the bill on fiscal grounds, warning that it will deepen the already gargantuan US deficit. In doing so, he has recast himself as a champion of traditional, deficit-conscious Republicans. Freedland notes a growing divide on the American right: between old-school conservatives who worry about fiscal responsibility, and nationalists like Trump's former strategist Steve Bannon, who support tariffs and oppose global immigration. Musk, by contrast, has argued against tariffs and in favour of keeping the US open to highly skilled, tech-savvy immigrants. He has even called for the formation of a new political party. No wonder the bromance has broken down. But then again, politics makes strange bedfellows—and anything's possible. Featured image by Depositphotos (for illustration purposes only)
Straits Times
10 hours ago
- Straits Times
China says it may speed up rare earths application approvals from EU
A mining machine is seen at a mine containing rare earth minerals in Inner Mongolia, China. PHOTO: REUTERS China says it may speed up rare earths application approvals from EU SHANGHAI – China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by July 5, its Commerce Ministry said on June 7. Price commitment consultations between China and the EU on Chinese-made electric vehicles exported to the EU have also entered a final stage, but efforts from both sides are still needed, according to a statement on the ministry's website. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on June 3, according to the statement. The comments mark progress on matters that have vexed China's relationship with the EU over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The Commerce Ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process'. Mr Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China', according to the statement. Chinese anti-dumping measures that applied duties of up to 39 per cent on imports of European brandy – with French cognac bearing the brunt – have also strained relations between Paris and Beijing. The brandy duties were enforced days after the EU took action against Chinese-made electric vehicle imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'. The Chinese duties have dented sales of brands, including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to July 5. China's Commerce Ministry said on June 7 French companies and relevant associations have proactively submitted applications on price commitments for brandy to China, and that Chinese investigators have reached an agreement with them on the core terms. The Chinese authorities were now reviewing the complete text on those commitments and would issue a final announcement before July 5, it said. In April, the European Commission said the EU and China also agreed to look into setting minimum prices of Chinese-made electric vehicles instead of tariffs imposed by the EU last year. China's Commerce Ministry said the EU also proposed exploring 'new technical paths' relating to EVs, which the Chinese side was now evaluating. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
