HONG KONG: Hong Kong Exchanges and Clearing (0388) reported today profit for the year ended December 31, 2016 tumbled by 27 percent to HK$5.76 billion from HK$7.9 billion the previous year. Revenue and other income also fell to HK$11.1 billion, down by 17 percent, or HK$2,25 billion, from HK13.37 billion in 2015. HKEx said however, revenue held up well when compared to the difficult market conditions during the year: the headline cash market average daily turnover declined by 37 percent against the record high of HK$105.6 billion in 2015 and trading volumes in both the commodities and stock options markets also declined.
The Hong Kong securities market experienced subdued trading in 2016 compared with all-time high turnover the previous year, Chairman Chow Chung-kong said. “Our commodity business in the UK also had a difficult year due to weakened global demand.” Chief Executive Charles Li Xiaojia, (pictured), said the subdued market conditions were reflected in weakened average daily turnover in the secondary market. Compared with the exceptionally high ADT of over HK$100 billion in 2015, cash market ADT fell below HK$70 billion for the year. At HK$66.9 billion, full-year 2016 ADT was down 37 percent from 2015.” Trading fees and trading tariff dropped by HK$831 million or 37 percent, in line with the 37 percent fall in ADT of equity products. The local bourse operator recommended a final dividend of HK$2.04 per share, resulting in the full-year dividend of HK$4.25 per share. Basic earnings per share were down by 29 percent to HK$4.76 compared with HK$6.70. HKEX shares fell by 1.16 percent to HK$195.70.
