Investing.com — Hong Kong Exchanges and Clearing Limited (HK:0388) shares fell on Friday after the exchange operator reported a decline in third-quarter profit due to softer activity in its cash and Southbound Stock Connect markets.
The shares were down 1.7% at HK$387.80, underperforming the Hang Seng Index, which tarded 0.5% lower.
Profit attributable fell 1% to HK$4.86 billion in the three months ended September 30, while revenue and other income edged up 1% to HK$7.87 billion. EBITDA was broadly unchanged at HK$6.20 billion, while its margin narrowed by two percentage points to 79%.
Core business revenue was flat at HK$7.47 billion, despite an 11% decline in headline average daily turnover on the Stock Exchange to HK$254.2 billion.
Lower Cash Market and Southbound Stock Connect trading and clearing fees, as well as reduced net investment income from margin funds due to higher rebates to clearing participants, offset gains from commodities trading, Northbound Stock Connect activity and higher listing fees.
Operating expenses rose 8% to HK$1.60 billion, mainly due to higher staff and information technology costs.
Despite the softer quarter, HKEX reported record revenue and profit for the first nine months of 2026.
Revenue and other income rose 12% year on year to HK$24.57 billion, while profit attributable to shareholders increased 15% to HK$15.43 billion. EBITDA climbed 14% to HK$19.61 billion, with its margin widening one percentage point to 80%.
Hong Kong also ranked as the world’s second-largest IPO market by funds raised during the period. A total of 118 new listings raised HK$388.4 billion, more than double the year-earlier amount, while follow-on fundraising reached a record HK$572.8 billion, up 25%.
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