HKEX Reports Record Q4 Revenue and Strong IPO Market Performance in 2022

​Today, Hong Kong Exchanges and Clearing Limited (HKEX) released its financial report for the fourth quarter of 2022. Revenue and other income for Q4 2022 totaled $5,201 million, which was 10% higher than that reported in Q4 2021, reaching a record high for the fourth quarter. The increase in core business revenue by 7% against Q4 2021 was due to the rise in net investment income from Margin Funds. Net investment income on Corporate Funds grew 52% against Q4 2021, mainly driven by higher interest income and higher fair value gains of the External Portfolio. The EBITDA margin remained at 74%. The profit attributable to shareholders reached $2,979 million, 11% higher than that of Q4 2021, which also reached a record high for the fourth quarter.

Although the volatile macro environment in 2022 impacted global markets, market sentiment started to improve in the fourth quarter, resulting in a robust finish for HKEX. The Hong Kong Derivatives Market had a strong performance throughout the year, with new trading records set across its USD/CNH Futures and several other individual derivatives products. Trading through Stock Connect remained resilient, and Northbound Bond Connect trading hit new highs in trading volume and number of investors. Hong Kong also remained one of the world's most active IPO fundraising hubs, raising a total of $104.6 billion in 2022.

The chargeable average daily volume of metals contracts traded on the LME decreased by 7% from 2021 amid challenging market conditions. Total revenue and other income of the Group for the year ended 31 December 2022 amounted to $18,456 million, and the profit attributable to shareholders was $10,078 million, down 12% and 20% respectively, from the record highs in 2021.

The Board declared payment of a second interim dividend of $3.69 per share, wholly in cash, which, combined with the first interim dividend of $3.45 per share paid in September 2022, results in a full-year dividend of $7.14 per share.

In the report, HKEX's CEO Nicolas Aguzin said: "The year finished very strongly for HKEX, with the Group reporting record fourth quarter financials, offsetting in part the softer volumes and numbers in the first half. Whilst the road ahead will not be without challenges, we are excited about the year ahead and we look forward to continuing to execute on our vision to build the Marketplace of the Future."