Profit attributable to shareholders rose 110% to $2.33 billion, and the HKEx Board has declared an interim dividend of HK$1.79 a share, up 90% on a year earlier.

HKEx Chairman Ronald Arculli suggested that the rise in profit was primarily attributable to higher turnover-related income, resulting from the growth in the level of activities in the cash and derivatives markets. This was partly driven by the improved market sentiment following the relaxation of rules governing the permissible investments under the Qualified Domestic Institutional Investor scheme.

Net investment income more than doubled as a result of higher net interest income and a surge in fair value gains of corporate fund investments this year. Moreover, HKEx disposed of its entire interest in Computershare Hong Kong Investor Services, and generated a HK$206-million gain.

Looking ahead, Mr Arculli predicted that macro-economic factors, for example, interest and inflation rates, the macrocontrol measures to check the pace of the fast-growing Mainland economy, and investors' worries over the US subprime mortgage problems, may give rise to uncertainties and volatility in the performance of Hong Kong's cash and derivatives markets.

Nonetheless, there are positive factors for the local securities market's solid development, and Hong Kong is well-positioned to benefit from the progressive liberalisation of Mainland financial policies, he added.

According to HKEx's half-year interim results released on Wednesday, the average daily turnover in the period was HK$59.2 billion, up 82% over a year earlier. The average daily number of derivatives contracts traded on the Futures Exchange surged 50% to 145,852, while that for stock options contracts traded on the Stock Exchange doubled to 131,040.

There were 32 newly listed companies on the Main Board in the first half of 2007, with total capital raised, including post-listing funds, reaching HK$193.7 billion.

At the end of June there were 1,002 and 194 companies listed on the Main Board and Growth Enterprise Market respectively, with a total market capitalisation of about HK$15.85 trillion.

In addition, there were 2,681 derivative warrants, 16 exchange traded funds, seven real estate investment trusts, 37 callable bull-bear contracts and 175 debt securities listed.