HONG KONG, Feb 29 Reuters Hong Kong39;s bourse operator on Thursday reported an 18 profit rise in 2023, but missed estimates as higher investment income was offset by a drop in trading and listing activities amid worsening macro conditions in the Asian financial hub.

China39;s economic slowdown, a sweeping regulatory tightening that hampered large companies39; fundraising outside mainland China, and geopolitical tensions have all resulted in a bleak year for new listings in Hong Kong.

Noting challenges including high interest rates, a complex geopolitical environment as well as ballooning recent budget deficits, Hong Kong on Wednesday announced a mix of measures to lure back capital, businesses, and visitors to the city.

The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd HKEX rose to HK11.86 billion 1.52 billion last year from HK10.08 billion in 2022, according to its earnings statement.

The profit, however, is smaller than a HK12.05 billion average forecast from analysts compiled by LSEG.

Net investment income from the exchange39;s corporate funds during the year posted a gain of HK1.5 billion, compared to a loss of HK48 million in the yearago period, according to the statement.

Against the backdrop of global economic and geopolitical challenges, however, the Hong Kong IPO market saw a decrease in activity in 2023, with 73 company listings raising HK46.3 billion, a drop of 56 compared with 2022, it added.

The average daily turnover of…