Hong Kong Exchanges & Clearing (HK2) Q2 2026 Earnings Report

The call presents a strongly positive operating and financial picture: record revenue, profit and trading volumes across cash, derivatives and commodities; robust IPO and follow-on fundraising; significant progress on FIC products (5-year CGB futures) and ETP growth. The primary negatives are lower net investment income (down 11% y/y; 21% lower excluding a one-off gain) due to higher margin rebates and lower rates, and increased operating expenses (OpEx +6% y/y; +9% ex nonrecurring items) as the group invests for future growth. Management framed these headwinds as known, manageable, and partly structural investments to support sustainable momentum. On balance, the strong breadth of record market activity, strategic product launches and healthy capital formation substantially outweigh the financial headwinds.

Management guided that HKEX will focus on disciplined execution to sustain momentum across a multi‑asset ecosystem while rolling out new FIC and commodity products, cross‑border connectivity and market infrastructure enhancements; they reported H1 revenue and other income of HKD 16.7 billion (+19% y/y), profit after tax HKD 10.6 billion and EPS HKD 8.36 (both +24% y/y), declared a first interim dividend of HKD 7.43 per share (90% payout), and highlighted headline ADT of HKD 283 billion (+18% y/y; Q2 record quarterly ADT HKD 289 billion) with Northbound ADT more than doubled, derivatives volumes +6% and commodities volumes +18% (LME chargeable ADV at a half‑year record); ETPs now represent 17% of headline ADT (vs ~5% in 2021), companies listed since 2025 contributed >8% of ADT, YTD IPO fundraising is USD 41 billion (FY2025: USD 37.5b) with >100 IPOs completed, follow‑on fundraising YTD USD 50 billion (FY2025: USD 66b), net investment income was HKD 2.56 billion (‑11% y/y; ‑21% ex HKD 298m one‑off gain) and is expected to remain affected in H2 by revised margin rebate arrangements and HKD rates, OpEx rose 6% (9% excl. nonrecurring items including a HKD 90m FCA fine in 2025 and a HKD 24m insurance claim in 2026), and near‑term operational milestones include the 5‑year CGB futures launched Aug 3, plans to accept CGB as collateral in clearing houses before year‑end, an FDR007 OTC contract and other tenor/product launches later this year.