HKEx underperforms in Q3

Hong Kong Exchanges & Clearing reported a 19% drop in its third-quarter net profit.

The stock exchange operator said its net profit for the three months ended September 30 was HK$1.00 billion compared to HK$1.24 billion year-on-year. For the first nine months of the year, HKEx’s net profit fell 16% to HK$3.22 billion from HK$3.82 billion.

HKEx said the lackluster results were caused by a declining average daily turnover value and fewer listings. Its average daily turnover value plunged 36% to HK$46.4 billion in the third quarter from HK$72.6 billion a year earlier. During the quarter, the benchmark Hang Seng Index rose 7.2%.

Revenue for the third quarter fell 13% to HK$1.69 billion from HK$1.95 billion,

HKEx makes money from fees and tariffs related to securities, options and derivatives trading and listing fees, investment income and clearing and settlement fees.