Record interim results support HKEX to strengthen SAR’s financial hub status

Hong Kong Exchanges and Clearing’s next-step strategy is to build a multi-asset ecosystem covering a full spectrum of investment products. This move aims to better connect capital and opportunities, aligning with Hong Kong’s planned first five-year plan by solidifying the city’s status as an international financial center.

HKEX CEO Bonnie Chan Yi-ting made the remarks at a Wednesday news conference detailing the bourse’s interim results.

“We have obviously been very strong on the equity side, but we believe that Hong Kong as a whole should branch into other areas such as fixed income, currencies, and commodities, as the city wants to position itself as an FIC (fixed-income and currency) center and build a commodity ecosystem,” Chan said. This strategy “aligns perfectly” with what the Hong Kong Special Administrative Region government has planned, she added.

Chan said a vibrant multi-asset ecosystem covering equities, fixed income, currencies, commodities, derivatives, indexes and data can satisfy investors’ needs for deeper liquidity, more diverse products, and increasingly sophisticated risk management tools.

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The city’s stock market operator reported exceptional results for the first half of 2026, with revenue and profit hitting half-year records, surpassing those set in the second half of last year.

The bourse’s profit attributable to shareholders reached HK$10.5 billion ($1.34 billion) in the first half of this year — up 24 percent from a year ago. The company announced an annual increase of 24 percent in the interim dividend per share to HK$7.43.

Revenue and other income amounted to HK$16.7 billion — a gain of 19 percent from the previous year. Core business revenue, which measures the company’s income from business operations, jumped 19 percent year-on-year to HK$15.4 billion.

The headline average daily trading (ADT) volume on the local stock exchange, including equity and derivatives products, surged 18 percent year-on-year to a record half-yearly high of HK$283 billion.

READ MORE: Mainland insurance companies get approval to invest in Hong Kong-listed ETFs

The ADT of northbound trading under the Stock Connect program increased 1.02 times annually to $345.3 billion yuan ($51.27 billion), while that of southbound trading gained 11 percent to HK$123.1 billion. The Northbound Bond Connect’s ADT increased 4 percent, to 47.6 billion yuan.

HKEX’s strong interim results are backed by robust market sentiment, strong fundraising demand from technology and artificial intelligence-related companies, and active participation from Chinese mainland and international investors.

Hong Kong ranked as the world’s second-largest initial public offering market in the first half of 2026, based on total funds raised. There were 87 new listings, raising HK$212.4 billion, representing a year-on-year increase of 97.7 percent and 94.2 percent respectively. The city also has an IPO pipeline of more than 400 active applicants.

Chan said 10 overseas companies are applying to list in Hong Kong, enticed by the city’s deep liquidity and strong fundraising capabilities.

READ MORE: HKEX renews CEO Chan’s contract as IPOs boom

She added that the conditions for extending trading hours for derivatives are relatively mature, given the market’s dominance by institutional investors. For the cash market, more thorough consideration is required because the market involves a larger number of investors, including local, mainland and regional, retail and institutional investors.

Roy Van Keulen, an equity analyst at United States-based investment research company Morningstar, said, “The most interesting part to watch is whether the exceptional strength in funds raised in the first half will continue; thus, the IPO pipeline will be a key forward-looking indicator to watch and hear commentary around.”

Citi Research rated HKEX a “buy” with a target price of HK$495 based on a price-to-earnings ratio of a multiple of 31 in 2027 and an ADT level of HK$300 billion. HKEX’s share price rose 2.3 percent to HK$414.6 on Wednesday.

Citi Research added that a vibrant IPO market, higher southbound trading level, rising trading share of dual-listed American depositary receipts in Hong Kong, as well as rising trading activity of exchange-traded products and the introduction of leveraged products have served as other ADT growth drivers.

However, the research team also noted potential risks, including an easing in trading volumes due to deteriorating market sentiment, geopolitical risks, and a possible halt in the IPO market.

Contact the writers at oswald@chinadailyhk.com