The Stock Exchange of Hong Kong (HKEX) has reported a spike in securities market trading volumes since March 2024, with headline average daily turnover up 22% quarter-on-quarter (QoQ). These results have been observed in spite of an overall year-on-year (YoY) decline in average daily turnover over H1.
Overall revenue was $10.621 million in H1 2024, remaining static YoY. Commenting on the results, CEO Bonnie Chan noted: “HKEX had a robust first half of the year with the second quarter seeing an upswing in market momentum and trading activity, driving record second quarter revenue and other income and profit.”
Within the derivatives market, average daily volumes for futures and options contracts traded were up by 12% YoY, the exchange reported. In April, the company announced plans to launch a proprietary derivatives platform in 2028. The Orion Derivatives Platform will provide enhanced trading ,clearing and risk management capabilities, it said, with the goal of better positioning HKEX within the global derivative space.
Progress was also made in Stock Connect trading, the exchange stated. Northbound average daily turnover hit RMB130.2 billion in H1, it said, a half-year high. Northbound Bond Connect trading also saw improvements, with average daily turnover rising by 14% YoY to RMB44.5 billion.
Expansions to ETFs eligible under Stock Connect service were made in July, and HKEX shared its intentions to continue developing the service through initiatives from the Chinese Securities Regulatory Commission and work with exchange partners.
Chan noted: “HKEX made significant strategic progress during the period with measures to further elevate the competitiveness of our markets. We announced a major investment in our technology to develop the Orion Derivatives Platform, marking an important step to own our digital destiny and part of our commitment to ensure that Hong Kong’s markets are future ready.”
“Gradual signs of recovery” were reported in the IPO market, with 107 active applications in the pipeline as of 30 June. In H1 overall, 81 applications were made – up 69% half-on-half.
Highlighting other areas of development of H1, chairman Carlson Tong drew attention to its collaboration with the Securities and Futures Commission (SFC) “to study and roll out the recommendations of the Task Force on Enhancing Stock Market Liquidity which HKEX participated in as a member. This important initiative aims to further improve market efficiency and trading dynamics, which will ultimately benefit both institutional and retail investors, as well as market participants.”
Concluding her statement, Chan said: “Looking ahead, while macro-environment uncertainties persist, we remain cautiously optimistic about the outlook for the rest of the year. We are resolutely focused on driving the vibrancy, resilience and competitiveness of our markets, by continuously enhancing our market infrastructure, expanding our products and international partnerships and future-proofing our business. We look forward to continuing to work closely with our partners and other stakeholders to deliver on our strategy.”
©Markets Media Europe 2024
