HONG KONG, April 24 Reuters Hong Kong39;s bourse operator reported a 13 drop in firstquarter profit on Wednesday, as sluggish trading and muted listing activities weighed on its businesses.

The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd HKEX fell to HK2.97 billion 379 million, but was slightly above analysts39; forecasts of HK2.82 billion compiled by LSEG.

The drop in profit highlights the challenges ahead for HKEX which has suffered since late 2020 from Beijing39;s crackdown on a broad range of industries and is struggling to revive listings and trading amid geopolitical tensions and economic volatility.

The bourse, once the world39;s top destination for initial public offerings, slid to the tenth spot in the first quarter in terms of funds raised via IPOs, according to data from Deloitte.

Profits for the bourse operator rose in the four quarters over October 2022 to September 2023, driven mostly by its own investment fund gains and a low base for the corresponding yearago periods. Starting October 2023, sluggish trading and static listing activities has driven down its income.

HKEX announced key leadership changes this year, with Bonnie Chan coming on as CEO in March and the board set to elect a new chairman later in the day, as it looks to improve performance.

Chan said in a statement that despite the prevailing backdrop she was optimistic about HKEX39;s ability to capitalise on the longterm growth of China, the considerable…