Hong Kong Exchanges and Clearing (388) investor relations material

Executive summary

• Delivered record half-yearly revenue and profit in H1 2026, surpassing previous highs, driven by robust market sentiment, strong fundraising demand from technology and AI-related companies, and active participation from both Chinese Mainland and international investors.

• Trading activity across Cash, Derivatives, ETP, Commodities, and Stock Connect Markets reached record levels, with the LME also achieving a new half-yearly high in trading volumes.

• Strategic initiatives advanced, including product launches, market structure reforms, ecosystem expansion, infrastructure enhancements, and enhanced connectivity with regional and global exchanges.

Financial highlights

• Revenue and other income reached HKD 16.7 billion, up 19% year-over-year; profit after tax was HKD 10.6 billion, and EPS was HKD 8.36, all up 24% year-over-year.

• EBITDA margin rose to 81%, up from 79% in 1H 2025; EBITDA for 1H 2026 was HKD 13.4 billion, up 23% year-over-year.

• Interim dividend declared at HKD 7.43 per share, up 24% year-over-year, representing a 90% payout ratio (excluding foundation results).

• Q2 2026 revenue was HKD 8.5 billion, up 18% year-over-year and 4% sequentially; profit attributable to shareholders was HKD 5.4 billion, up 21% year-over-year and 4% sequentially.

• Operating expenses increased 6% year-over-year, mainly due to higher staff and IT costs and increased charitable donations.

Outlook and guidance

• Expectation of continued strong market momentum, supported by robust investor demand, healthy IPO pipeline, and ongoing product innovation.

• Plans to launch the Uncertificated Securities Market (USM) in November 2026 and continue expanding the multi-asset ecosystem and technology platforms.

• Focus on further expanding Connect programs, launching new products (e.g., FDR007 contracts), and enhancing market infrastructure.

• Net investment income anticipated to remain under pressure due to revised margin collateral arrangements and lower interest rates.

• Continued focus on market reforms, enhanced connectivity, and multi-asset ecosystem expansion to strengthen competitiveness and resilience.