The listing business is booming, and HKEX's profits in the first quarter hit a record high

In the first quarter, the net profit of HKEX reached a record high.

On Wednesday, against the backdrop of global economic uncertainty, the Hong Kong Exchanges and Clearing (HKEX) delivered an impressive performance report, with a net profit of HKD 4.08 billion in Q1 2025, a year-on-year increase of 37%, surpassing the expected HKD 3.98 billion, setting a new historical quarterly high, breaking the record of HKD 3.84 billion set in Q1 2021.

Multiple factors contributed to the growth in performance.

First, the AI boom has reignited global interest in Chinese assets. HKEX CEO Nicolas Aguzin stated in a statement:

"Since the second half of 2024, global interest in Chinese opportunities has reignited, and this momentum, driven by AI and innovation, has continued into 2025."

Second, the erratic tariffs under Trump have led to significant market volatility, naturally boosting trading volume and listing activities at HKEX, with trading settlement fees surging, driving Q1 revenue up 32% year-on-year to HKD 6.86 billion.

Since the beginning of this year, the average daily trading volume of the Hong Kong stock market has soared from around HKD 120 billion in the same period last year to HKD 249 billion, setting a historical single-day record of HKD 621 billion in early April.

Third, the wave of Chinese concept stocks returning. In the past, many Chinese companies listed on A-shares or U.S. stocks began seeking "secondary listings" or "returning to Hong Kong." In Q1, HKEX welcomed 17 new listings, five more than the same period last year, with total financing also significantly increasing. Among the most notable is CATL's planned IPO of over USD 5 billion, expected to become the largest IPO globally in 2025.

In terms of stock price, HKEX's stock price has risen over 16% year-to-date, outperforming the Hang Seng Index's increase of 10%.