HKEX Reports 7% Growth in Profit Driven by IPOs and Economic Stimulus
Wednesday, 23 October 2024, 08:21
HKEX Rebounds with Strong Profit Growth
The Hong Kong Exchanges and Clearing (HKEX), Asia’s third-largest stock market, experienced a remarkable 7% profit increase in its third quarter, amounting to HK$3.15 billion (US$403 million).
Driving factors included a surge in initial public offerings (IPOs), where 15 IPOs generated HK$42.2 billion, a sixfold increase from last year. This success reflects the favorable investor sentiment following economic stimulus measures introduced by Beijing and monetary easing policies adopted by major central banks.
Strong Market Performance and Recovery
- Profit Surge: HKEX's net profit matched analysts' expectations, marking its best earnings since September 2021.
- Market Turnover: Trading volume reached a record high with an average daily turnover of HK$118 billion, up 21%.
- CEO Bonnie Chan Yiting noted that international partnerships and product offering expansions have positioned HKEX for continuous growth amid macro-economic changes.
Investor Impact and Future Outlook
- Hang Seng Index Recovery: The index rose 19% in Q3 after a challenging year, reflecting stabilization in market confidence.
- IPO Leadership: Midea's US$4.6 billion IPO was the largest listing in three years for Hong Kong, showcasing the market's robustness.
- With 96 companies currently pursuing listings, HKEX's future appears promising amidst ongoing economic shifts.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.