Hong Kong Exchanges and Clearing Limited (HKEX) reported its strongest nine-month performance on record, underscoring the resilience of its multi-asset strategy despite softer third-quarter activity.
Financial Performance • Year-to-date to 30 September 2026, revenue and other income rose 12.44 % year on year to HKD 24.57 billion, lifting profit attributable to shareholders by 14.96 % to HKD 15.43 billion and pushing EBITDA up 14.25 % to HKD 19.61 billion. • The EBITDA margin widened 1 ppt to 80 %, while operating expenses grew 7. 0 % to HKD 4.76 billion, driven mainly by higher staff and IT costs. • Capital expenditure for the period increased 29.47 % to HKD 3.95 billion, reflecting continued investment in systems upgrades and the new headquarters premises.
Quarterly Trends • Third-quarter revenue and other income edged up 1.18 % year on year to HKD 7.87 billion, but profit attributable to shareholders slipped 0.84 % to HKD 4.86 billion as operating expenses climbed 8.11 %. • Versus the record Q2 2026, revenue retreated 7.42 % and profit declined 9.67 %, reflecting normalisation in trading volumes and the absence of HKD 290 million of one-off valuation gains recognised in the previous quarter.
Market Activity • Headline average daily turnover (ADT) on the Hong Kong Stock Exchange fell 11.26 % year on year in Q3 to HKD 254.20 billion, yet remained robust on a nine-month basis at a record HKD 272.94 billion (+6.44 %). • Northbound Stock Connect ADT surged 60.97 % year to date to RMB 332.44 billion, while Southbound ADT eased 6.75 % to HKD 117.40 billion. • London Metal Exchange (LME) chargeable average daily volume climbed 16.07 % to an all-time nine-month high of 809,000 lots, boosting commodities revenue 27.82 % to HKD 2.91 billion. • Exchange Traded Products ADT hit a record HKD 48.00 billion, accounting for 18 % of total equity turnover.
Strategic and Product Highlights • Introduced the first offshore 5-Year China Government Bond Futures in August, with 72,302 contracts (RMB 38.90 billion notional) traded by quarter-end; CGBs, Policy Bank Bonds and Ministry of Finance Bonds will become eligible margin collateral from November. • Advanced Hong Kong’s fundraising appeal: 118 new listings raised HKD 388.40 billion in the first nine months, positioning Hong Kong as the world’s second-largest IPO venue year to date; follow-on equity issuance reached a record HKD 572.80 billion. • Implemented Phase 1 board-lot reforms, Phase 2 minimum-spread reductions and published consultation conclusions on Phase 1 of the Listing Framework Competitiveness Review; Phase 2 consultation on post-listing rules is underway. • Expanded derivatives suite with enhanced weekly strike price intervals and 21 new stock-option classes; derivatives ADV hit a record 1.72 million contracts year to date (+2.01 %). • Revitalised USD Gold Futures, achieving an average daily volume of 10,251 contracts since early July and a single-day record of 27,922 contracts. • The LME rolled out a Liquidity on Orderbook Programme, automated metal options expiry and continued reforms of physical market structures; warehouse stocks in Hong Kong grew 51 % since year-end 2025.
Liquidity and Capital • Cash and cash equivalents stood at HKD 162.99 billion on 30 September 2026. • Margin deposits and cash collateral totalled HKD 250.51 billion, down 6.96 % from year-end 2025, in line with lower LME positions. • Net investment income from Corporate Funds increased 10.63 % to HKD 1.44 billion, supported by HKD 307 million of non-recurring gains on unlisted equity investments.
Outlook Management reiterated confidence in Hong Kong’s long-term competitiveness, citing ongoing market-structure enhancements, technology investments and deepening connectivity with Mainland China as key pillars for sustained growth amid global market volatility.
Comments