Hong Kong Exchanges and Clearing (HKEX) is off to a great start in 2026, with the bourse operator reporting a record first-quarter profit driven by buoyant trading as investors sought safe-haven assets amid volatile global markets and uncertain geopolitics, while extending its lead as the world’s top initial public offering venue.
Following two consecutive years of record annual results through 2025, the HKEX posted HK$5.18 billion ($661 million) in profit in this year’s first quarter, representing an increase of HK$1.11 billion, or 27 percent year-on-year, according to a filing on Wednesday. Revenue and other income exceeded HK$8.20 billion, a quarterly record and 20 percent more than the same period last year, it said.
The encouraging performance was attributed to increased global capital flows into safe-haven assets, with more investors now turning to the special administrative region’s equity market for access to Asian growth opportunities in the face of a volatile macroeconomic environment, according to Bonnie Chan Yiting, chief executive officer of HKEX.
The stock exchange’s headline average daily turnover (ADT) reached HK$276.7 billion in the first three months of the year, the second-highest quarterly level after HK$286.4 billion in Q3 2025. Trading turnover exceeded HK$300 billion on 20 trading days during the period, reflecting “strong participation from both Chinese mainland and international investors,” Chan said.
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Investors’ growing exposure to the Hong Kong market also helped drive robust activity in the southbound and northbound Stock Connect channels — mutual market access channels that link bourses in the HKSAR and the mainland.
The northbound channel’s average daily turnover hit a new high of 324.1 billion yuan ($47.42 billion), up 70 percent year-on-year, bringing a 76 percent growth in trading fees to HK$277 million. Meanwhile, the southbound daily turnover averaged HK$122.5 billion, 11 percent higher year-on-year.
The primary market also maintained robust momentum in the first quarter, with 40 new listings launching in Hong Kong with a combined fundraising of more than HK$110 billion, nearly six times the number from the same period last year, positioning the city as the world's top IPO venue again.
Chan said the pipeline of “high-quality companies” continued to underscore the HKEX’s role as a leading fundraising platform for companies across innovative and growth sectors.
“Looking ahead, we will continue to deepen regional connectivity, broaden participation and invest in building a resilient, innovative multi-asset ecosystem, ensuring our markets remain well positioned to capture opportunities across market cycles,” she added.
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Christopher Hui Ching-yu, secretary for Financial Services and the Treasury, said earlier in the day that the HKSAR government will build on the stock market’s robust momentum, pledging to continue advancing market reforms and strengthening its competitiveness.
The authorities will move forward with the next phase of reforms, including optimizing the regulatory framework for listed companies and providing specific guidelines for overseas companies seeking a secondary listing in Hong Kong, he added.
As of the end of March, there were over 430 pending listing applications, according to HKEX data. Goldman Sachs previously projected that total equity supply in the Hong Kong market will reach $110 billion for 2026, including $60 billion in IPOs.
The investment bank said it believes the recovery in Hong Kong's IPO activity will fuel stronger growth for the HKEX and Chinese brokers with more overseas business exposure.
Shares of the HKEX rose nearly 3 percent on Wednesday, closing at HK$419.80 per share with a daily turnover of HK$2.64 billion.
Contact the writer at gabylin@chinadailyhk.com
