By Clarence Leong


The earnings of Hong Kong Exchanges & Clearing Ltd. in the third quarter fell 30% as sluggish trading activity weighed on its revenue.

The stock operator on Wednesday reported net profit of HK$2.26 billion ($287.9 ​​million) for the quarter, up from HK$3.25 billion a year earlier.

Revenue fell 23% to HK$3.94 billion, weighed down by lower trading and clearing fees, he said. Overall average daily revenue fell 41% to HK$97.6 billion.

Hong Kong’s IPO market showed a recovery from earlier this year, the company said. Fundraising from 29 IPOs during the quarter raised HK$53.5 billion, more than double the proceeds raised in the first half, HKEX said. This is due to several large IPOs during the quarter, including the largest listing so far this year by China Tourism Group Duty Free Corp. The company said the IPO pipeline is strong, with 144 active applications as of September 30.

HKEX chief executive Nicolas Aguzin said in a statement that results were down “from record comparables” but there were “early signs of renewed momentum in the IPO market. trading, a vibrant derivatives market and continued strength in both Stock Connect and Bond Connect”.


Write to Clarence Leong at clarence.leong@wsj.com