Hong Kong Exchanges and Clearing Limited (HKEX) has delivered exceptional financial results for the first half of 2025, with both revenue and profit surging over 30% amid robust market activity and record trading volumes. The exchange operator reported revenue and other income of HK$14.08 billion and net profit of HK$8.52 billion, demonstrating strong momentum across its business segments. This impressive HKEX revenue and profit surge has propelled the company’s stock price to remarkable gains, outperforming the broader market significantly.
Record Financial Performance
HKEX’s outstanding first-half results showcase the exchange’s strong operational performance and the vibrant state of Hong Kong’s financial markets. The HKEX revenue and profit surge represents one of the strongest half-year performances in recent years.
Key Financial Metrics
The exchange reported revenue and other income of HK$14.08 billion, representing a 33% increase compared to the same period last year. Net profit reached HK$8.52 billion, climbing 39% year-over-year. The second quarter was particularly strong, with net profit of HK$4.44 billion, marking a 41% increase from Q2 2024 and setting a new historical record for the period.
This remarkable HKEX revenue and profit surge was primarily driven by:
– Increased trading fees and transaction system usage fees of HK$4.91 billion, up 49.11%
– Higher settlement and clearing fees of HK$3.16 billion, increasing 48.47%
– Record contributions from Stock Connect programs reaching HK$1.81 billion
Trading Activity Reaches Historic Highs
The exceptional HKEX revenue and profit surge was underpinned by unprecedented trading volumes across multiple market segments. Market participants showed heightened activity throughout the first six months of 2025.
Record-Breaking Volumes
The securities market achieved an average daily turnover of HK$240.2 billion, representing a massive 118% increase from the same period last year. Derivatives trading also showed strong growth, with futures and options products averaging over 1.7 million contracts traded daily, an 11% year-over-year increase.
The ETF market emerged as a particular standout, with average daily turnover reaching HK$33.8 billion, surging 184% compared to H1 2024. This explosive growth in ETF trading reflects increasing investor appetite for diversified exposure and efficient market access.
Southbound Flows Drive Market Momentum
The Stock Connect programs between Hong Kong and mainland China markets delivered record performance, contributing significantly to the HKEX revenue and profit surge. Southbound trading activity particularly stood out as a major growth driver.
Unprecedented Southbound Activity
Southbound trading through the Hong Kong Stock Connect reached an average daily turnover of HK$111 billion, nearly triple the volume from the same period in 2024. This massive inflow of mainland capital accounted for 23% of the total stock trading value in Hong Kong, establishing itself as a crucial component of market liquidity.
Northbound trading also showed robust growth, with average daily turnover of RMB 171.3 billion, increasing 32% year-over-year. The combined effect of both directions created powerful momentum that significantly contributed to the HKEX revenue and profit surge.
The Stock Connect programs generated record income of HK$1.81 billion for HKEX, with HK$1.45 billion coming from trading and settlement fees alone. This represents the highest half-year contribution in the program’s history.
IPO Market Stages Remarkable Recovery
The vibrant secondary market activity extended to primary market developments, with the IPO market showing dramatic improvement. This diversification of revenue sources further supported the overall HKEX revenue and profit surge.
Fundraising Activity Soars
The Hong Kong market welcomed 44 new listings in the first half of 2025, raising HK$109.4 billion in total IPO proceeds. This figure represents an eight-fold increase compared to the same period last year. Additionally, follow-on offerings and other fundraising activities exceeded HK$240 billion, marking the strongest half-year performance since 2021.
This impressive rebound in IPO activity reflects several factors:
– Successful上市机制改革 (listing mechanism reforms) implemented by HKEX
– Improved market sentiment and investor confidence
– Attractive valuation opportunities for issuers
– Enhanced market infrastructure and efficiency
Strategic Initiatives and Future Outlook
HKEX’s leadership has implemented numerous strategic initiatives that have contributed to the current HKEX revenue and profit surge. These reforms are designed to enhance market competitiveness and attract diverse market participants.
Technology and Innovation Focus
HKEX CEO Bonnie Chan (陈翊庭) highlighted the success of recent initiatives, particularly the specialized tech company listing channel. Since its introduction, the exchange has received 50 applications from companies under Chapters 18A and 18C, demonstrating strong interest from innovative technology firms.
Chan emphasized that confidential application processes, common in global markets, provide necessary protection for companies with sensitive intellectual property or those in development stages while maintaining appropriate transparency for investors.
Infrastructure Enhancements
HKEX is continuing to advance market infrastructure improvements. Chief Operating Officer Katherine Ng (刘碧茵) outlined plans to shorten settlement cycles, expand paperless listing mechanisms, implement new IPO pricing rules, and reduce minimum tick sizes for securities trading.
These initiatives are crucial for maintaining Hong Kong’s competitiveness as global markets increasingly move toward T+1 or even T+0 settlement cycles. By 2027, approximately 88% of global equity trading value is expected to settle under these accelerated timelines.
Sustaining Growth Momentum
The exceptional HKEX revenue and profit surge positions the exchange strongly for continued growth. Market infrastructure enhancements, diverse product offerings, and strategic positioning between global and Chinese markets create multiple growth avenues.
The exchange’s stock performance reflects this optimism, with shares gaining 52% year-to-date, significantly outperforming the Hang Seng Index’s 25% increase. Investor confidence remains high as HKEX continues to leverage its unique position as the gateway between Chinese and global capital markets.
Looking ahead, HKEX plans to capitalize on current momentum through additional market enhancements, product innovations, and service improvements. The exchange’s leadership remains focused on maintaining Hong Kong’s status as a leading global financial center while adapting to evolving market dynamics and participant needs.
The remarkable HKEX revenue and profit surge demonstrates the exchange’s resilience and adaptability in a dynamic global financial environment. With strong fundamentals, strategic positioning, and ongoing infrastructure improvements, HKEX is well-positioned to maintain its growth trajectory and continue delivering value to stakeholders across the global financial ecosystem.