Hong Kong Exchange Sees Another Profit Record

by Mary Swire, for LawAndTax-News.com, Hong Kong

06 March 2008

Hong Kong Exchanges and Clearing saw another record-high profit for the fourth consecutive year in 2007, it announced this week.

Profit attributable to shareholders rose 145% to $6.2bn, mainly due to higher turnover-related income, higher net investment income and the one-off gain on disposal of an associate during the year. A total dividend of $5.19 per share was recommended, up 144% on a year earlier.

It further emerged that HKEx recorded an $8.4bn income, up 102% on a year earlier, with operating expenses up 17% to $1.4bn. The profit before taxation amounted to $7.2bn.

The rise in total operating expenses was mainly due to increases in staff costs and premises expenses driven by buoyant job and property markets, and higher legal and professional fees, the exchange explained.

A final dividend of $3.40 per share will be paid to shareholders on April 24th. Together with the interim dividend of $1.79 per share, this will bring the total dividend distribution for the year to $5.19 per share.

The group's total assets rose 117% to $87.9bn, with shareholders' funds and net assets per share up 59% to $8.4bn and $7.83, and funds available for investment comprise Corporate, Margin and Clearing House Funds totalling $49.7bn on average in the year, while the overall size of funds available for investment rose 130% to $69.1bn.

The year also saw 82 companies newly listed on the Main Board and two companies on the Growth Enterprise Market, according to HKEx.

Total capital raised, including post-listing funds, reached $509.4bn. The number of companies listed on the Main Board and Growth Enterprise Market were 1,048 and 193, respectively.

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