HKEX (0388) announced its first-quarter results, revenue and other income HKD 4.288 billion, up by 3% year-on-year; operating expenses HKD 970 million, up by 4% year-on-year; profit attributable to shareholders HKD 2.608 billion, up by 2% year-on-year; EBITDA HKD 3.318 billion, up by 3% year-on-year. Basic earnings per share HKD 2.09, up by 1% year-on-year.

As HKEX suggested in the result announcement, the increase in revenue mainly due to an increase in net investment income from fair value gains on collective investment schemes and higher interest income from Margin Funds and Corporate Funds; and record high quarterly revenue and other income from Stock Connect; which more than offset a reduction in trading and clearing fees driven by lower Cash Market turnover and Derivatives Market volume.

Operating expenses increased by 4%, was because of the increases in staff costs and IT costs, partly offset by lower premises expenses as a result of adopting the new accounting standard for leases.

In the first quarter, ADT of the Stock Exchange was HKD 101.1 billion, down by 31% year-on-year; ADT of equity products traded on the Stock Exchange was HKD 74.3 billion, down by 34% year-on-year; ADT of DWs, CBBCs and warrants traded on the Stock Exchange was HKD 26.8 billion, down by 18% year-on-year; ADV of derivatives contracts traded on the Futures Exchange was 659 thousands of contracts, down by 3% year-on-year; ADV of stock options contracts traded on the Stock Exchange was 528 thousands of contracts, down by 21% year-on-year. Chargeable ADV of metals contracts traded on the LME was 611 thousands lots, down by 3% year-on-year.

Number of newly listed companies on the Main Board in Q1 was 38, while numbers of newly listed companies on GEM was 5. In 2018Q1, the number was 36 and 33 respectively. Total equity funds raised on IPOs was HKD 21.2 billion, down by 13.1% year-on-year; total equity funds raised on post-IPOs was HKD 22.2 billion, a big drop from 2018Q1’s HKD 96.5 billion.