Hong Kong Exchanges and Clearing (HKEX) is off to a great start in 2026, reporting a record first-quarter profit driven by buoyant trading activity 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, HKEX on Wednesday posted HK$5.18 billion ($661 million) in profit in this year’s first quarter, representing a 27 percent increase year-on-year. Revenue and other income exceeded HK$8.20 billion, also a quarterly record and 20 percent higher than the same period last year, according to its filing.
The strong 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 amid a volatile macroeconomic environment, said Bonnie Chan Yi-ting, 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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Growing investor exposure to the Hong Kong market also boosted activity in the southbound and northbound Stock Connect channels — mutual market access links between Hong Kong SAR and mainland markets.
The northbound channel’s ADT hit a 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 remained robust in the first quarter, with 40 new listings raising more than HK$110 billion — nearly six times the amount from the same period last year — reaffirming Hong Kong’s position as the world’s top IPO venue.
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 SAR government will build on the stock market’s robust momentum, pledging to advance reforms and strengthen competitiveness.
He outlined plans to move forward with the next phase of reforms, including optimizing the regulatory framework for listed companies and providing specific guidelines for overseas firms seeking a secondary listing in Hong Kong.
As of the end of March, over 430 listing applications were pending. Goldman Sachs has projected that total equity issuance in the Hong Kong market will reach $110 billion in 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 HKEX rose nearly 3 percent on Wednesday, closing at HK$419.80 with a daily turnover of HK$2.64 billion. The Hang Seng Index increased 1.68 percent to 26,111.84.
Contact the writer at gabylin@chinadailyhk.com
