Driven by a surge in trading volume and ipos, the Hong Kong Stock Exchange's profits soared by 56% in the third quarter

The Hong Kong Stock Exchange's third-quarter results reached a record high, with net profit soaring to HK $4.9 billion. Strong trading activities and the IPO boom were the main drivers of the performance growth.

On November 5th, the latest financial report released by the Hong Kong Stock Exchange showed that the net income of the Hong Kong Exchanges and Clearing Limited in the third quarter reached 4.9 billion Hong Kong dollars (630 million US dollars), a significant increase of 56% compared with the same period last year.

The financial report also shows that the revenue and other income in the third quarter was 7.775 billion Hong Kong dollars, an increase of 45% compared with the third quarter of 2024. The main business income rose by 54% compared with the third quarter of 2024, due to the record high trading volume in the spot market, which led to an increase in transaction and settlement fees.

(Source: Hong Kong Stock Exchange in the third quarter)

It is worth noting that the Hong Kong Stock Exchange's revenue, other income and profits in the first three quarters of 2025 all reached record highs.

Among them, the revenue and other income for the first three quarters of 2025 was 21.851 billion Hong Kong dollars, an increase of 37% compared with the first three quarters of 2024. The main business income rose by 41% compared with the first three quarters of 2024, due to the record high trading volume in the spot market and the stock option market, which led to an increase in transaction and settlement fees.

The profit for the first three quarters was 13.419 billion Hong Kong dollars, an increase of 45% compared with the same period of 2024.

The CEO of the Hong Kong Stock Exchange, Chan Yat-ting, said, "The Hong Kong Stock Exchange continues to capture the momentum of global diversification and the appeal of Chinese assets." Hong Kong is moving towards the goal of setting a new high in IPO fundraising in four years, mainly benefiting from the inflow of shares offered by mainland enterprises and the recovery of global interest in Chinese assets.

The Hang Seng Index soared by 29% in the third quarter, driving stock and derivatives trading to a record high and generating substantial profits for the exchange.

Core revenue has seen a significant increase and ipos have soared

The core business of the Hong Kong Stock Exchange performed strongly, with transaction and settlement fee income increasing by 54% in the third quarter to HK $7.5 billion. This growth is mainly attributed to the explosive increase in stock trading volume.

The overall stock trading volume doubled in the third quarter. More notably, the trading volume of mainland investors through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect mechanisms has increased by more than twice, demonstrating the strong interest of mainland funds in the Hong Kong market.

Meanwhile, the Hong Kong IPO market performed outstandingly in the first nine months of 2024. A total of 69 companies raised HK $188.3 billion through initial public offerings, far exceeding the HK $55.6 billion raised in the same period of 2024.

The secondary market stock offering also performed well, raising a total of HK $264.1 billion in the first nine months. As of the end of September, the Hong Kong Stock Exchange had an active IPO pipeline of 297 companies, providing a sufficient reserve for future performance growth.

Analysis indicates that the soaring performance of the Hong Kong Stock Exchange reflects a shift in global investors' attitudes towards Chinese assets. The high enthusiasm of mainland enterprises for listing in Hong Kong, coupled with the renewed attention of international investors to the Chinese market, have jointly driven the recovery of the Hong Kong capital market.

The 29% quarterly increase of the Hang Seng Index not only drove a sharp rise in trading volume but also boosted market confidence, creating a favorable environment for more enterprises to choose Hong Kong as their listing destination. This trend is expected to continue until the end of the year, supporting the Hong Kong Stock Exchange to maintain a strong growth momentum.

Risk Warning and Disclaimer

The market involves risks. Please invest with caution. This article does not constitute personal investment advice and has not taken into account the individual user's specific investment objectives, financial situation or needs. Users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Any investment made based on this is at your own risk.