Hong Kong exchange posts record profit as equity turnover doubles, listings rebound

[HONG KONG] Hong Kong’s stock exchange said on Thursday (Feb 26) that profit for 2025 surged to a record on buoyant trading activity amid a rush of firms going public and as investors lifted their exposure to Chinese assets – trends that are expected to continue.

Last year, foreign investors began boosting their holdings of Chinese stocks in a big way, encouraged by tech opportunities on offer, a trade war truce and demand for diversification beyond US securities.

“We ... see cause for optimism in capital markets as global investors adjust to the ongoing uncertainty of an increasingly multipolar world by seeking diversification and risk management opportunities in Asian, and specifically Chinese, assets,” chief executive Bonnie Chan said in a statement.

Net profit for Hong Kong Exchanges and Clearing (HKEX) rose 36 per cent to HK$17.7 billion (S$2.9 billion) in line with analysts’ forecasts.

The bourse also said it would pay HK$12.52 per share in total dividends, an increase of 23 per cent over 2024.

HKEX shares reversed earlier losses to trade 0.4 per cent higher after the results, outperforming a 1.2 per cent decline for the wider market.

Last year, the exchange regained the title of the world’s top listing venue for the first time since 2019.

Initial public offerings and other share sales in Hong Kong raised some US$287 billion for 119 companies and/or their shareholders. Among the largest of them was a US$5.3 billion share sale by battery maker Contemporary Amperex Technology Co.

Of the offerings, 85 companies were from mainland China and those accounted for about 70 per cent of the proceeds raised, according to data from the exchange and LSEG.

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In particular, Chinese companies already listed in mainland China have been keen to tap foreign investors via a second listing in Hong Kong.

The exchange said it saw a robust listing pipeline, with more than 400 active applications. Such has been the enthusiasm for listings that investment banks have stretched thin, resulting in a warning from the bourse and local securities regulator about substandard applications.

Separately, trading volume for the exchange, which accounts for about 60 per cent of its revenue, shot up 93 per cent in 2025 after US President Donald Trump’s tariff policies sent jitters across financial markets.

Trading volume under the southbound Stock Connect scheme soared 151 per cent as mainland investors increased allocations to Hong Kong-listed shares. REUTERS