HKEx Half-Year Profit Up 28%

by Mary Swire, Tax-News.com, Hong Kong

13 August 2008

Hong Kong Exchanges & Clearing saw income rise 33% year-on-year in the first half of 2008, to HKD4.21bn (USD540mn), it was announced on Wednesday.

Profit attributable to shareholders rose 28%, to HKD2.97bn, and the HKEx Board has declared an interim dividend of HKD2.49 a share, up 39% on a year earlier.

According to HKEx's half-year interim results released today, the average daily turnover in the period was HKD87.3bn, up 47% over a year earlier.

The average daily number of derivatives contracts traded on the Futures Exchange rose 31%, to 191,179 while that for stock options contracts traded on the Stock Exchange rose 82%, to 238,970.

HKEx Chairman Ronald Arculli said the rise in profit was primarily attributable to the higher turnover-related income resulting from an increase in the level of activities in the cash and derivatives markets and growth in net investment income on account of higher net interest income in 2008.

The higher net investment income was due to the significant increase in net interest income of margin funds arising from an increase in fund size during the first six months.

Looking ahead, Mr Arculli said the second half of the year will be challenging. The group will pursue its 2007-2009 strategic plan to achieve sustainable growth. The review of its existing corporate social responsibility policies and practices, currently underway, will contribute in this aspect.

"With the twin objectives of expanding our product range and broadening our investor base, the first non-financial futures contract, gold futures, will be launched in October this year," he added.

To develop the markets and reinforce Hong Kong's position as a leading international financial centre, the group will continue its strategic investments in information technology systems to upgrade its market infrastructure, as well as other services.

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