US$9mil revenue from Stock Connect


HONG KONG: Hong Kong’s stock exchange operator said a stock connect programme with Shanghai that launched on Nov 17 contributed just US$8.8mil to revenue last year, showing how disappointing trading on the programme has capped profit growth.

Hong Kong Exchanges and Clearing Ltd (HKex), as it is formally known, said in a filing in Hong Kong that the stock connect programme contributed HK$68mil in revenue in 2014.

Fourth-quarter profits were HK$1.52bil (US$195.98mil) according to a Reuters calculation from company figures.

HKEx chief executive Charles Li has banked on the stock connect programme, which allows investors in mainland China to buy Hong Kong shares and vice versa, to boost falling trading volumes in the financial hub.

Daily trading volumes via the scheme, however, have remained lacklustre, due mainly to regulatory and technical hurdles that make the scheme unappealing to many institutional investors.

The programme only launched halfway through the fourth quarter, meaning its impact has not been fully felt.

Average daily turnover in the fourth quarter rose to HK$80bil from HK$59bil a year ago, the filing showed, a 35% increase but not yet the transformative boost some market participants had hoped for.

HKEx also saw improved numbers of listings in 2014, with 122 initial public offerings (IPOs) compared with 110 in the previous year. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Business , HKEX , earnings , bourse

   

Next In Business News

CPO futures likely to see technical correction next week
Evergrande says six execs redeemed investment products in advance
Infineon opens Austria plant early in chip capacity boost
Indonesia may reopen to tourists from some countries in October
Airbus reaches deal to restructure AirAsia jet order
Oil price falls as storm-hit US supply trickles back into market
World shares fall as markets await Fed meeting, taper timeline
Gadang’s subsidiary bags RM100mil deal
Big sales jump for EcoWorld Malaysia in Q3
The 18th entry

Stories You'll Enjoy


Vouchers