Hong Kong Exchanges and Clearing (HKEX), the operator of Asia's third-largest stock market, on Wednesday reported its best quarterly and nine-month earnings on record on the back of rising turnover and initial public offerings (IPOs).
Net profit for the three months to September rose 56 per cent from a year earlier to HK$4.9 billion (US$628 million), or HK$3.88 per share, beating analysts' estimate of HK$4.7 billion, according to an exchange filing.
It was HKEX's best quarterly profit, exceeding the HK$4.46 billion profit in the second quarter. In the process, the bourse operator topped its previous record for the third consecutive quarter.
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The HKEX also posted a record nine-month profit of HK$13.42 billion, beating analysts' estimate of HK$13.21 billion. This was 45 per cent higher than a year earlier.
HKEX will invest in "building a multi-asset ecosystem that will position Hong Kong's capital markets for the future", says Bonnie Chan. Photo: Jonathan Wong alt=HKEX will invest in "building a multi-asset ecosystem that will position Hong Kong's capital markets for the future", says Bonnie Chan. Photo: Jonathan Wong>
"HKEX continued to capture the momentum of global diversification and attractiveness of Chinese assets in the third quarter of 2025," CEO Bonnie Chan Yiting said in the exchange filing.
"HKEX has continued to roll out strategic initiatives to further support diversification, deepen liquidity and strengthen global connectivity. As the world continues to find its new equilibrium, we will seize the opportunity of the moment to invest in building a multi-asset ecosystem that will position Hong Kong's capital markets for the future."
HKEX shares rebounded to rise about 0.1 per cent to HK$425.8 at 1.10pm after the release of the better-than-expected results at lunch break, reversing a decline of 0.9 per cent to HK$421.80 before the announcement.
Total revenue for the third quarter rose 54 per cent to HK$7.8 billion, surpassing market estimates of HK$7.6 billion.
The strong performance was driven by a 141 per cent year-on-year increase in average daily turnover during the quarter to a record HK$286 billion. For the first nine months of the year, the average daily turnover rose 126 per cent from the same period a year earlier to HK$256.4 billion.
This resulted in a 73 per cent increase in trading fees and a 100 per cent jump in settlement fees for the third quarter. Trading fees rose 57 per cent while settlement fees climbed 79 per cent for the year to September.
HKEX benefited from global investors switching to the relative safety of Hong Kong-listed stocks of mainland Chinese companies amid US tariff policies and a weaker US dollar. The benchmark Hang Seng Index has risen 35 per cent this year, making it one of the world's best-performing benchmarks.
Funds from across the border also piled into Hong Kong-listed stocks. The average daily turnover in the southbound leg of Stock Connect , which allows mainland investors to buy Hong Kong stocks, soared 285 per cent to a record HK$152.5 billion in the third quarter, while the northbound channel posted a 144 per cent jump to a record 268.7 billion yuan (US$37.7 billion), according to the filing.
The HKEX's average daily turnover of derivatives contracts dropped 5 per cent, but stock options contracts increased 19 per cent in the third quarter. Over the first nine months, derivatives contracts declined 3 per cent, while options contracts jumped 27 per cent.
Listing fees surged 26 per cent in the third quarter and increased 17 per cent in the first nine months. The third quarter saw 25 IPOs that raised a combined HK$78.9 billion - 87 per cent higher than a year earlier, the filing said.
Total funds raised from new share sales in Hong Kong soared 220 per cent year on year in the first nine months, with 66 companies raising US$23.27 billion on the exchange's main board, according to data from the London Stock Exchange Group.
That put the bourse at the top of the global IPO rankings, well ahead of the New York Stock Exchange and Nasdaq. It was the first time the city claimed the No 1 spot since 2019.
The outlook was positive, with 297 companies having filed listing applications as of September, the filing said.
The performance was offset by a 15.7 per cent decline in investment income to HK$1 billion as a result of lower valuations across HKEX's portfolio of global stocks and bonds during the quarter.
"From a long-term perspective, increased trading activity in Hong Kong stocks, a vibrant IPO market and growing inflows of mainland capital through the Stock Connect programmes are factors that support the HKEX's sustained growth," said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
This article originally appeared in the South China Morning Post (SCMP) , the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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