(Bloomberg) -- Hong Kong’s stock exchange posted a 7% gain in third-quarter profit as investment income surged.
Net income at Hong Kong Exchanges & Clearing Ltd. rose to HK$3.145 billion ($405 million), it said in a statement Wednesday. That beat the consensus estimate of HK$3.113 billion, according to five analysts surveyed by Bloomberg.
The results will likely be boosted further in the current quarter after China unleashed a barrage of stimulus at the end of September. Trading volumes spiked after the long-awaited move, driving average daily volumes to about HK$300 billion, more than double the average this year. Hong Kong has also cut interest rates, adding further to confidence.
“The vibrancy and diversity of Hong Kong’s markets were on full display in late September, as investor sentiment turned more favorable following the announcement of economic stimulus measures in Mainland China, as well as the monetary easing policies adopted by major central banks,” HKEX Chief Executive Officer Bonnie Chan said in the statement.
HKEX’s share price has surged almost 30% since China deployed market support measures on Sept. 23. The city’s flagship Hang Seng Index rose 13% in same period.
Money raised via IPOs soared to HK$42.2 billion during July and September, more than tripling the whole first half, including the blockbuster debut of Midea Group Co Ltd.
The bourse last week pledged to shrink IPO vetting time to about 100 business days from a median of 173 currently, hoping to lay a smooth way for new listings.
Average daily trading of equity products rose 23% in the quarter from a year earlier, helped by a 37% surge in trading from investors in mainland China via the southbound Stock Connect.
Net investment income rose 41% during the third quarter driven by higher net fair value gains of the externally-managed investment funds, HKEX said. Its core business revenue grew 3%.
(Updates with more earnings details)
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