HKEX's Charles Li: Average daily turnover of Hong Kong stocks in March and April has significantly rebounded, investor confidence is somewhat restored
Charles Li, Chief Executive of Hong Kong Exchanges and Clearing Limited (HKEX), stated that the group delivered a strong performance in the first quarter of this year. Despite a weak global macro environment, the derivatives and commodities business segments continued to perform well. The average daily turnover in March and April showed a significant increase, indicating a recovery in investor confidence. The trading volume under the Stock Connect program kept rising, while the Bond Connect program achieved a quarterly record high trading volume. HKEX's quarterly results revealed an increase in revenue and other income compared to the previous period, with net profit attributable to shareholders also exceeding expectations. Charles Li believes that the measures taken by the China Securities Regulatory Commission will further enhance the attractiveness of Hong Kong's capital market. The group remains optimistic and bullish on the long-term growth trend of the Chinese economy
According to the information from the iFeng Finance app, on April 24th, Charles Li, the CEO of Hong Kong Exchanges and Clearing Limited (HKEX) stated in the performance announcement that the group demonstrated strength and resilience in the first quarter of this year. Despite the weak global macro environment, the group's derivatives and commodities business still performed strongly, with the trading volume of derivatives reaching a new quarterly high. Although the stock market remained weak due to the macro market sentiment, the average daily turnover in March and April has significantly rebounded, indicating a recovery in investor confidence. The trading volume of the mutual market access mechanisms continued to rise, with significant increases in the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Bond Connect, with the trading volume of the Bond Connect reaching a new quarterly high.
On April 24th, HKEX released its quarterly performance for the three months ending on March 31, 2024. The revenue and other income for the first quarter of 2024 amounted to HKD 5.201 billion, a 6% year-on-year decrease but a 7% increase quarter-on-quarter. The profit attributable to shareholders was HKD 2.97 billion, a 13% year-on-year decrease, but still higher than the approximately HKD 2.7 billion to HKD 2.841 billion predicted by several securities firms. It also increased by 14% quarter-on-quarter.
Charles Li mentioned that the China Securities Regulatory Commission recently announced several measures to support the development of Hong Kong's capital markets, including expanding the scope of eligible ETFs under the Shanghai-Hong Kong Stock Connect, including real estate investment trusts in the Shanghai-Hong Kong Stock Connect, allowing RMB stock trading counters to be included in the Hong Kong Stock Connect, and supporting leading mainland industry companies to list in Hong Kong. These measures will further enhance the attractiveness of Hong Kong's capital markets.
Looking ahead, Charles Li stated that despite the current challenging environment, the group remains optimistic. They are optimistic about the long-term growth trend of the Chinese economy and the opportunities that can arise from expanding connections with capital markets in Southeast Asia and the Middle East. The group will leverage technology to enhance market vitality