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HKEx Profits Increase 74%
by Mary Swire, Tax-News.com, Hong Kong

16 November 2006

Hong Kong Exchanges & Clearing saw a 74% year-on-year surge in the profit attributable to shareholders in the first three quarters of this year to HK$1.67 billion, according to third quarter results announced on Tuesday.

HKEx recorded income of HK$2.8 billion in the first three quarters, up 44% on a year earlier, while operating expenses rose 5% to HK$890 million. The profit attributable to shareholders was HK$1.67 billion, with basic earnings per share at HK$1.57.

The average daily turnover value on the Stock Exchange was HK$30.4 billion, 67% higher than the same period last year. The average daily number of derivatives contracts traded on the Futures Exchange and stock options contracts traded on the Stock Exchange also rose 46% and 92% to 96,926 and 64,608.

The increase in profit for the nine months was primarily attributable to the higher turnover-related income resulting from the significant increase in level of activities of the Cash and Derivatives Markets, and growth in investment income arising from an increase in fair value gains of Corporate Fund investments and higher interest income in 2006.

HKEx Chairman Ronald Arculli observed that apart from macro-economic factors which will have an impact on Hong Kong market performance, the sustained solid economic growth in the Mainland will continue to drive the development of the financial market in Hong Kong.

"Maintaining Hong Kong's status as an international financial centre is part of the Central Government's 11th Five-year Plan. In the pursuit of this, HKEx is committed to further strengthening cross-border liaison, facilitating the listing of quality companies in Hong Kong, enhancing market infrastructure and proactively promoting the Hong Kong markets to both local and overseas investors. The strategic plan for 2007-2009 is being formulated to implement these initiatives," he announced.

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