Due to the record high growth of Shanghai-Shenzhen-Hong Kong Stock Connect and the net increase in investment income, offsetting the impact of the decline in Hong Kong stocks, the Hong Kong Stock Exchange (00388) earned 5.205 billion yuan in the first half of the year, up 3% year-on-year. 3.72 yuan
Li Xiaojia of the Hong Kong Stock Exchange stressed that the recent events in Hong Kong have long-term effects on society and the economy.
Hong Kong stocks average daily turnover shrinks 23%
In July, the turnover of Hong Kong stocks continued to fall. The average daily turnover was only 68.7 billion yuan, down 23% year-on-year. Chief Executive Li Xiaojia bluntly said that the recent social incidents are not trivial and have long-term impact on the society and the economy. Hong Kong people should be “good for themselves”. Stop violence as soon as possible and return to reason.
Chairman Shi Meilun said in the performance that the global market continued to fluctuate in the first half of this year in the context of the Sino-US trade friction and the slowdown in global economic growth. A number of uncertainties, including the US interest rate outlook, the possibility of a Brexit in the UK, and the recent social unrest in Hong Kong continue to influence the market direction.
In the first half of the year, the average daily turnover of Hong Kong stocks was only 97.9 billion yuan, down 23% year-on-year; the number of daily average contracts for futures and options in the derivatives market also fell 4% year-on-year to 1.18 million. The total amount of initial public offerings reached $71.8 billion. Although the annual growth rate was 39%, the number of applications for new listings fell and the number of applications for withdrawal of listings increased. The average daily trading volume of the metal trading contracts of the London Metal Exchange (LME) also fell by 6%.
Shanghai and Shenzhen-Hong Kong Stock Connect revenues are half a year high
However, with the inclusion of MSCI and the FTSE Russell Index in China’s A-shares, the daily average transaction volume of the Shanghai-Shenzhen-Hong Kong-Guangdong-Tongbei transaction increased in the first half of this year, driving the Shanghai Stock Exchange’s revenue and other income on the Hong Kong Stock Exchange to rise 39% year-on-year to 5.08. 100 million yuan, a new high in the first half of the year; coupled with the increase in net investment income, including the fair value gains of collective investment plans and the increase in interest income, offsetting the decline in transaction volume and the reduction in transaction and settlement fee income.
During the period, the collective investment plan revenue rose 9.3 times to 535 million yuan. Trading costs in the spot market fell 21% year-on-year. In the first half of the year, the Group’s revenue reached 8.78 billion yuan, an increase of 5% year-on-year. Operating expenses increased by 2% to 1.953 billion yuan.
Li Xiaojia said that the recent social events will not affect the Group’s promotion of its three-year strategic plan. Currently, the transactions in the Hong Kong market are orderly and the trading system is also safe.
“Every Hong Kong person should ask his three questions, what do you want? What do you want? What you want today is getting closer and closer, or is it getting farther and farther? You should stop and think about it now! He stressed that violence will only push the dream farther and farther. He hopes that Hong Kong people will administer Hong Kong instead of Hong Kong people.
Big Capricorn buy 340 yuan
Morgan Stanley issued a report saying that it benefited from investment income and settlement business performance. HKEx’s second-quarter earnings per share was higher than the bank’s and market expectations. It reiterated its “overweight” rating and maintained its target price of 340 yuan.