Hong Kong Exchanges & Clearing Ltd (HKEX) reported a record net income of HK$5.38 billion (approximately US$686 million) for the second quarter of 2026, a 21% increase from the same period last year that exceeded market estimates [1, 2, 3]. The company’s core business revenue rose 17% in Q2, supported by strong trading volumes and a surge in initial public offerings (IPO) activity [1, 3].
In the first half of 2026, IPO volumes on HKEX rose 94%, with 87 companies raising HK$212.4 billion, making Hong Kong the world’s second largest IPO market after Nasdaq [1]. HKEX posted a record profit of HK$10.57 billion for the first half, a 24% year-on-year increase and above analyst forecasts [2]. This boosted interim dividend per share by 24% to HK$7.43 [2].
The Stock Connect trading links with mainland China hit record levels, with eight new exchange-traded funds (ETFs) added to the southbound link to total 31 by the end of June [1]. Mainland China announced support on August 16 for its insurance companies to invest in ETFs via the southbound Stock Connect, further facilitating cross-border investment flows [1].
HKEX CEO Bonnie Chan was reappointed this week for a three-year term starting March 2027 [1, 3]. Chan said, "Looking ahead, despite persistent macro and geopolitical uncertainties, the long-term opportunity for HKEX and for Hong Kong remains compelling as global capital increasingly seeks access to China’s innovation economy and Asia’s growth prospects" [1].
Market regulators have increased warnings to investment banks about sloppy IPO applications, reflecting efforts to ensure higher listing standards amid rising deals [1, 3]. Analysts note that growth in HKEX earnings is partly fueled by Chinese companies involved in artificial intelligence driving deal activity, while the exchange is also expanding its non-equity business lines [1, 3].
Following the earnings announcement, HKEX shares rose as much as 1.6% in early trading, though they remain mostly unchanged for the year amid a weak broader market [1].
