HKEX Releases Its Results in Q3 2020: a 12 Percent YoY Rise in Revenues

Hong Kong Exchanges and Clearing Limited (HKEX) today reported its financial results for the nine months ended 30 Sepetember 2020, revealing revenues and profit a YoY rise.

HKEX's YTD Q3 2020 revenue and other income was 12 percent higher than YTD Q3 2019, a nine-month record high - Core business revenue increased by 21 percent against YTD Q3 2019, - Stock Connect revenue and other income rose by 79 percent to $1,354 million against YTD Q3 2019. Net investment income fell $673 million against YTD Q3 2019. Operating expenses were 11 percent higher than YTD Q3 2019. EBITDA4 margin was 77 percent, consistent with YTD Q3 2019, and 2 percent higher than the full 2019 financial year. Profit attributable to shareholders was a nine-month record high of $8,580 million, 16 per cent higher than YTD Q3 2019.

Charles Li, Chief Executive said:“HKEX performed well in the first nine months of 2020, despite a volatile macro backdrop. Revenue and other income, and profit reached record highs in the first nine months of 2020, underpinned by strong Cash Market turnover, Stock Connect and Bond Connect volumes, as well as a buoyant IPO market. Investment income was lower than last year, reflecting global portfolio valuations and the low interest rate environment. We remain on track with the delivery of our Strategic Plan 2019-2021, well-placed to capture future growth opportunities, and fully focused on managing costs and risks. With robust trading volumes, a strong IPO pipeline, and an expanding product portfolio, I am confident that HKEX will play an increasingly important role in global markets.”