HONG KONG, Feb 24 Reuters Hong Kong Stock Exchanges operator posted a 23 jump in 2020 net profit on Wednesday that was marginally above estimates, buoyed by higher trading volumes due to coronavirusdriven market gyrations, while Stock Connect schemes linking the bourse with mainland China also boosted volumes.
Hong Kong Exchanges and Clearing HKEX posted a net profit of HK11.51 billion 1.48 billion for the year ended Dec. 31, up from HK9.39 billion a year earlier, setting a third straight year of record profits.
The average estimate of 24 analysts polled by Refinitiv was HK11.3 billion.
Average daily turnover of equity products traded on the Hong Kong exchange rose 60 in 2020, as investors reacted to market volatility early in the year, caused by the COVID19 pandemic, and subsequent optimism caused by vaccine roll outs.
Trading revenue is the largest contributor to HKEXs income.
Profits were also boosted by fees from new listings, most notably by USlisted Chinese companies including tech firm JD.com seeking secondary listings in Hong Kong.
Hong Kong was the second most popular listing venue globally in 2020, with deals worth 31.2 billion, compared to Nasdaqs 51.3 billion, according to Refinitiv data.
With robust trading volumes, a strong IPO pipeline, and an expanding product portfolio, I am confident that HKEX will continue to play a vital role connecting investors, corporates and markets around the world, Calvin Tai, the companys interim chief executive…