Hong Kong Exchanges and Clearing Limited shares fell 1.7% to HK$387.80 on Friday after the exchange operator reported third-quarter profit declined 1% to HK$4.86 billion, weighed down by softer activity in cash and Southbound Stock Connect markets.
Revenue and other income rose 1% to HK$7.87 billion in the three months ended September 30, while EBITDA held flat at HK$6.20 billion. EBITDA margin narrowed two percentage points to 79%. Core business revenue was unchanged at HK$7.47 billion despite headline average daily turnover on the Stock Exchange falling 11% to HK$254.2 billion.
Lower trading and clearing fees in cash and Southbound Stock Connect markets hurt results. Reduced net investment income from margin funds due to higher rebates to clearing participants also offset gains from commodities trading, Northbound Stock Connect activity, and higher listing fees.
Operating expenses climbed 8% to HK$1.60 billion, driven by higher staff and information technology costs.
For the first nine months of 2026, HKEX reported record results. Revenue and other income rose 12% year on year to HK$24.57 billion. Profit attributable to shareholders increased 15% to HK$15.43 billion. EBITDA climbed 14% to HK$19.61 billion with margin expanding one percentage point to 80%.
Hong Kong ranked as the world's second-largest IPO market by funds raised during the period. A total of 118 new listings raised HK$388.4 billion, more than double the year-earlier amount. Follow-on fundraising reached a record HK$572.8 billion, up 25%.
HKEX shares underperformed the Hang Seng Index, which fell 0.5%.
Investors monitoring HKEX (0388) and the Hang Seng Index should watch for trends in trading volumes and IPO activity in Hong Kong.