Cash market declines hurt HKEX profits

Average daily turnover of cash markets at HKEX saw 37% drop in 2016 compared with the year prior.

HKEX reported a 17% decrease in total Group revenues in 2016 with cash markets average daily turnover declining 37% compared to the year prior.

‘Subdued market conditions’ saw cash markets average daily turnover plummet from $105.6 billion in 2015 to just $64.3 billion in 2016.

Clearing and settlement fees for the Hong Kong cash market reported decreases of 30% and 23% respectively.

HKEX said decreased commodities trading on the London Metal Exchange - which saw an 8% decrease in average daily volume compared to the year prior - also impacted revenues in 2016.

Trading in derivatives set numerous records in 2016, with total futures turnover reaching 84,100,129 contracts, up 14% from 2015.

“Our strategy of transforming HKEX into a derivatives powerhouse across all asset classes is now a reality,” said Group CEO, Charles Li. 

Chairman at HKEX, Chow Chung-Kong, added: “The Hong Kong securities market experienced subdued trading in 2016 compared with all-time high turnover the previous year. Our commodity business in the UK also had a difficult year due to weakened global demand.”

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