By Selena Li
HONG KONG (Reuters) – Hong Kong’s bourse operator on Wednesday reported a narrower than expected 13% drop in first-quarter profit, as sluggish trading and muted listing activities weighed on its businesses.
The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) dropped to HK$2.97 billion ($379 million), from HK$3.41 billion a year earlier.
The profit, however, was above analysts’ forecasts of HK$2.82 billion compiled by LSEG.
HKEX said its revenue in the first quarter was down 6% to HK$5.2 billion, mainly due to shrinking trading and listing fee income.
“Whilst the cash market reflected broader macro sentiment and remained soft, there was a notable uptick in headline average daily trading in March and April, indicating growing investor confidence,” Bonnie Chan, HKEX’s new CEO, said in a statement.
Chan took on the top job in March at a time when HKEX is battling bleak profits amid geopolitical tensions and China’s faltering economy.
($1 = 7.8339 Hong Kong dollars)
(Reporting by Selena Li; Editing by Himani Sarkar)
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