HKEX sets half-yearly record of $1.68 billion revenues in H1, driven by mainland stock link momentum and IPO wave
Published: Aug 11, 2021 02:08 PM
HKEX File Photo

HKEX File Photo

The Hong Kong Stock Exchange (HKEX) saw record revenues over the first half of this year, driven by momentum created by the Hong Kong-mainland stock link programs and the recent trend of mainland companies seeking IPOs in Hong Kong, with observers stating the result reconfirms the strength and appeal of Hong Kong as a key global financial hub. 

According to statistics released by the HKEX Wednesday noon, HKEX's revenues and other income hit a half-yearly record of HK$10.909 billion ($1.68 billion) in the first half of 2021, up 24 percent on a yearly basis and 5 percent higher than the previous record set in the second half of 2020. 

Rising revenues were attributed to multiple factors, including a buoyant IPO market, strong trading volumes and significant momentum in the Hong Kong-mainland stock link programs, said HKEX CEO Nicolas Aguzin. 

"The macro backdrop will remain challenging in the months ahead, but we remain resolutely focused on continuing to enhance the attractiveness of our market...and driving our business forward. We are well-placed for the opportunities and challenges ahead," he said. 

According to statistics provided by the HKEX, its revenues earned through stock link mechanisms and other related income reached HK$1.32 billion in the first half of this year, up 78 percent compared with the first half of 2020. The average daily turnover in Hong Kong's securities market increased by 60 percent, while trading volume of futures and options in the derivatives market also surged by 3 percent during the period. 

The city's IPO market was also buoyant in the first half of this year, as a number of notable mainland firms listed on the bourse, including Kuaishou and JD Logistics. In total, IPO funds amounting to HK$211.7 billion were raised on the HK markets, up 128 percent year-on-year.

The booming business of HKEX coincided with a global economic recovery in the first few months this year after the pandemic outbreak alleviated. Across mainland stock markets, IPO figures and the financing scale in A-share markets rose 108 percent and 51 percent in the first six months of the year. The US NASDAQ market also raised funds of $103 billion in IPO in the first half of this year, setting a historical record. 

Global Times