HKEX pins hopes on reforms to boost listings after reporting 30 per cent decline in third-quarter profit
- HKEX earnings fell 30 per cent to HK$2.26 billion (US$287.9 million) for the three months to September 30 from a year earlier, in line with market estimates
- Inclusion of Hong Kong-listed international companies into the stock connect scheme is an important milestone for city, CEO Aguzin said
Hong Kong Exchanges and Clearing, the city’s stock market operator, is optimistic that a spate of ongoing reforms will attract more overseas and tech firms to list in the city after it posted a 30 per cent fall in third-quarter profit, according to its chief executive Nicolas Aguzin.
The HKEX has proposed to create a new listing regime to allow pre-revenue or pre-profit big tech companies to list in Hong Kong next year, according to a consultation paper issued on Wednesday. The consultation, which will collect views for two months, will attract more tech companies to list here, he said.
In addition, the bourse is looking to set up offices in New York and Europe to attract international listings. Last month, the China Securities Regulatory Commission (CSRC) said that international firms listed in Hong Kong could be added to the Stock Connect schemes. Further details and the actual list are yet to be announced.
“The inclusion of Hong Kong-listed international companies in the stock connect schemes is an important milestone for Hong Kong,” Aguzin said in a post-earnings briefing on Wednesday.
Aguzin was optimistic about the HKEX’s outlook after the bourse operator reported a slump in earnings on the back of shrinking income from trading, IPOs and investments, extending a series of weaker results to a sixth straight quarter.
