Asia300

Hong Kong Exchanges & Clearing Ltd.

Hong Kong

  • 1m
  • 3m
  • 6m
  • 1y
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  • 5y
Apr 24, 2017
Prev close: 190.8
Apr 24, 2017
Market cap:
Market cap(USD):
233,600.73M
30,040.47M
Shares: 1,224.32M

Currency in HKD

Company profile

Market(Ticker): HKG(388)
Sector:
Industry:
Finance
Investment Banks/Brokers
Full time employees: 1,603

Business summary

Hong Kong Exchanges & Clearing Ltd. engages in the operation of stock and futures markets. It operates though the following segments: Cash; Equity and Financial Derivatives; Commodities; Clearing; and Platform and Infrastructure. The Cash segment covers equity products traded on the Cash Market platforms and Shanghai Stock Exchange. The Equity and Financial Derivatives segment includes derivatives products traded on Hong Kong Futures Exchange Limited and the Stock Exchange, and other related activities. The Commodities segment operates an exchange in the United Kingdom for the trading of base metals futures and options contracts. The Clearing segment provides clearing, settlement, depository, and custody and nominee services. The Platform and Infrastructure segment refers to services in connection with providing users with access to the platform and infrastructure. The company was founded on July 8, 1999 and is headquartered in Hong Kong.

Company background

Hong Kong Exchanges & Clearing (HKEx) is a global operator of exchanges and clearing houses, one of the world's largest exchange groups by market capitalization. It operates the stock market, futures market and four clearing houses through its subsidiaries in the region. The bourse has been around 6% owned by the Hong Kong government.

The company also has expanded its commodities trading business. In 2012, it acquired the London Metal Exchange, one of the world's leading industrial metals exchanges. The LME business contributes about 20% to HKEx's overall revenue. HKEx seeks to create a commodities trading scheme with mainland China and London, aiming to promote investor convenience in the major metals market and to increase income from trading fees.

Charles Li Xiaojia became CEO of HKEx in 2010. Li is boosting the group's global competitiveness through strengthening partnerships with mainland China markets. HKEx has partnered with the Shanghai Stock Exchange and the Shenzhen Stock Exchange on the China Exchanges Services Co., which is to develop cross-border indexes based on products traded on these markets. It also opened the stock connection with Shanghai in November 2014. HKEx in June 2015 approved a new three-year term for Li, until October 2018.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 11,018M
Gross profit --
Operating income 6,809M
Income before tax 6,808M
Net income 5,769M
EBITDA --
Diluted EPS 4.75
Dividends per share 4.25
Total assets 247,318M
Total liabilities 214,934M
Total equity 32,266M
Operating cash flow 16,218M

Currency in HKD

Revenue 1,419.39M
Gross profit --
Operating income 877.17M
Income before tax 877.04M
Net income 743.19M
EBITDA --
Diluted EPS 0.61
Dividends per share 0.54
Total assets 31,899.03M
Total liabilities 27,722.15M
Total equity 4,161.66M
Operating cash flow 2,089.28M

Currency in USD

Valuation measures

Dec 2016

PER 38.48
ROA 2.37%
ROE 18.58%
Operating margin 61.79%
Profit margin 52.35%

Key executive

  • CEO & Ex-Officio Executive Director: Xiao Jia Li
  • Chief Operating Officer & Group Risk Officer: Trevor William Spanner
  • Group Chief Financial Officer: Paul Michael Kennedy
  • CTO & Head-Information Technology Division: Tang Bill Chow
  • Head-Equities, Fixed Income & Currency: Chi Kin Tai

Share holders

  • Special Administrative Region of Hong Kong(5.4%)
  • The Vanguard Group, Inc.(2.0%)
  • BlackRock Fund Advisors(1.3%)
  • JPMorgan Whitefriars (UK)(1.1%)
  • Hang Seng Investment Management Ltd.(1.1%)
  • Norges Bank Investment Management(1.0%)
  • State Street Global Advisors Asia Ltd.(1.0%)
  • OppenheimerFunds, Inc.(0.7%)
  • Aberdeen Asset Managers Ltd.(0.6%)
  • J.O. Hambro Capital Management Ltd.(0.5%)

Address

  • Website: http://www.hkex.com.hk
  • Address: 12th Floor, One International Finance Centre, Hong Kong, Hong Kong
  • Phone: +852.2522.1122

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