The Hong Kong Exchanges and Clearing (HKEX) reported that its revenues and profits achieved record highs in 2024, buoyed by modest global economic growth with the easing of inflationary pressures and interest rates.
The Hong Kong stock market operator said its profits attributable to shareholders jumped 10 percent annually to HK$13.05 billion ($1.67 billion). The company declared a second interim dividend of HK$4.9 per share, taking the dividend to a whole year rise of 10 percent to HK$9.26 per share, with a dividend payout ratio of 90 percent.
In the same period, the company’s revenues and other income increased 9 percent year-on-year to HK$22.4 billion, attributable to increases in trading and clearing fees from higher volumes across the cash, derivatives and commodities markets, as well as the London Metal Exchange (LME) fee increment.
READ MORE: HKEX: Companies listed in Hong Kong total 2,631 in 2024
The average daily turnover (ADT) on the Hong Kong Stock Exchange soared 26 percent from a year ago to HK$131.8 billion. Since the beginning of this year, the ADT of the stock market has exceeded HK$200 billion. The Hong Kong stock market’s total capitalization reached HK$40 trillion.
The ADT of northbound and southbound trading of the stock connect program achieved record highs during the year, with the ADT of northbound trading increasing by 39 percent year-on-year to 150.1 billion yuan ($20.65 billion) and the ADT of southbound trading skyrocketing by 55 percent annually to HK$48.2 billion, generating revenue and other income of HK$2.7 billion in 2024.
The HKEX said Hong Kong was the world’s fourth-largest initial public offering hub with 71 new listings raising HK$88 billion last year, representing a growth of about 90 percent year-on-year.
“We are currently processing more than 100 listing applications, many of which are A-share companies listed on the mainland that are seeking to list on the Hong Kong H-share market, and the current listing rules take their needs into consideration,” HKEX Chief Executive Officer Bonnie Chan Yiting said at a press conference on Thursday.
About the budget’s proposal to establish a dedicated technology enterprises channel to facilitate listings of specialist technology and biotechnology companies, Chan said investors are particularly fond of these technology companies and they have performed very well recently, accounting for 80 percent of the total fundraising amount in the Hong Kong IPO market last year.
Chan said that the proposed listing channel is tailor-made for such enterprises. “With dedicated staff responsible for processing the listing application, these companies are more confident to list their shares in Hong Kong.”
The HKEX is moving forward with the single tranche multiple counter arrangement, including adopting the same International Securities Identification Number for dual-counter stocks, for enhancing settlement efficiency.
READ MORE: Hong Kong unveils fast-track IPO process to boost listings
“The main purpose of this proposal is to encourage more Hong Kong-listed companies to set up counters that can trade in renminbi,” Chan said.
“There are currently 24 renminbi counter stocks. Though the number is small and the trading volume is not low, there is also room for optimization. The stock exchange has been carrying out related work and will announce (its progress) in due course,” Chan added.
Before the results were announced, the HKEX share price edged up 1 percent to close at HK$365 apiece during Thursday’s trading, with the Hang Seng Index dipping by 0.3 percent to close at 23,718 points. Market turnover soared to over HK$406 billion, a hike of nearly 10 percent from the previous day.
