Hong Kong Exchanges and Clearing (388) Q2 2025 earnings summary

Executive summary

• Achieved record half-yearly revenue and profit in 1H 2025, regaining position as the world's No.1 IPO venue by funds raised, with new highs in Cash Market, Derivatives, and Stock Connect volumes.

• Strategic initiatives included product diversification, technology upgrades, enhancements to listing frameworks, and expansion of commodities and FIC ecosystems.

• Celebrated 25th anniversary with community engagement, sustainability, and charity programs, and announced permanent headquarters acquisition.

Financial highlights

• 1H 2025 revenue and other income rose 33% year-on-year to HKD 14.1 billion; core business revenue up 34%.

• Profit attributable to shareholders increased 39% year-on-year to HKD 8.5 billion; basic EPS at HKD 6.74, up 39%.

• EBITDA margin reached 79%, up 6 percentage points; operating expenses rose 6% year-on-year, including a non-recurring FCA fine.

• Interim dividend declared at HKD 6.00 per share, up 38% year-on-year, with a 90% payout ratio (excluding HKEX Foundation results).

• Q2 2025 profit was HKD 4.44 billion, up 41% year-on-year and 9% sequentially.

Outlook and guidance

• Cautiously optimistic for 2H 2025 despite macroeconomic, geopolitical, and regulatory uncertainties.

• Focused on innovation, operational resilience, product expansion, and enhancing market infrastructure and competitiveness.

• Southbound RMB counter, REIT Connect, and shorter settlement cycle initiatives targeted for rollout before year-end.

• IPO pipeline remains robust with over 200 companies filed to list as of June 2025.