Hong Kong Exchanges & Clearing Ltd.

In the news

Hong Kong stocks slump after global rout on coronavirus fears Feb 28, 2020
HKEX sees 'big' virus impact on new listings after bittersweet year Feb 26, 2020
Asian stocks decline as virus infections rise in South Korea Feb 26, 2020
Hong Kong stocks fall as virus fears fuel more global losses Feb 26, 2020
Hong Kong shares rise after Wuhan coronavirus-driven slide Jan 31, 2020

See more articles on Hong Kong Exchanges & Clearing Ltd.

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.

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.

Financial Highlights

Dec 2019	HKD	USD
Revenue	16,311M	2,081.75M
Gross Profit	14,687M	1,874.48M
Operating income	11,042M	1,409.28M
Income before tax	10,919M	1,393.58M
Net income	9,391M	1,198.56M
EBITDA	12,287M	1,568.17M
Diluted EPS	7.47	0.95
Dividends Per Share	6.71	0.85
Total Assets	279,051M	35,813.41M
Total liabilities	234,550M	30,102.15M
Total equity	44,173M	5,669.16M
Operating cash flow	28,493M	3,636.53M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	12,873M	11,018M	12,443M	15,973M	16,311M
Gross Profit	--	--	--	--	14,687M
Operating income	8,755M	6,809M	8,544M	10,911M	11,042M
Income before tax	9,287M	6,799M	8,610M	10,883M	10,919M
Net income	7,956M	5,769M	7,404M	9,312M	9,391M
EBITDA	9,439M	7,580M	9,402M	11,673M	12,287M
Diluted EPS	6.67	4.75	6.02	7.48	7.47
Dividends Per Share	5.95	4.25	5.40	6.71	6.71
Total Assets	238,193M	247,318M	317,604M	255,948M	279,051M
Total liabilities	208,231M	214,934M	280,229M	215,045M	234,550M
Total equity	29,816M	32,266M	37,273M	40,729M	44,173M
Operating cash flow	8,267M	4,716M	16,777M	8,624M	28,493M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	1,660.48M	1,419.39M	1,596.72M	2,038.01M	2,081.75M
Gross Profit	--	--	--	--	1,874.48M
Operating income	1,129.30M	877.17M	1,096.39M	1,392.14M	1,409.28M
Income before tax	1,197.92M	875.88M	1,104.86M	1,388.57M	1,393.58M
Net income	1,026.23M	743.19M	950.10M	1,188.12M	1,198.56M
EBITDA	1,217.53M	976.49M	1,206.49M	1,489.36M	1,568.17M
Diluted EPS	0.86	0.61	0.77	0.95	0.95
Dividends Per Share	0.76	0.54	0.69	0.85	0.85
Total Assets	30,733.98M	31,899.03M	40,628.34M	32,690.83M	35,813.41M
Total liabilities	26,867.99M	27,722.15M	35,847.28M	27,466.52M	30,102.15M
Total equity	3,847.15M	4,161.66M	4,768.01M	5,202.09M	5,669.16M
Operating cash flow	1,066.35M	607.53M	2,152.88M	1,100.34M	3,636.53M

Valuation Measures

Dec 2019
PER	33.77
ROA	3.51%
ROE	22.12%
Operating margin	67.69%
Profit margin	57.57%

Key executives

CEO & Executive Director: Xiaojia Li
Co-President & Chief Operating Officer: Chi Kin Tai
Co-President: Romnesh Lamba
Group Chief Financial Officer: Vanessa Lau
Group Chief Technology Officer: Chung Kwong Leung

Shareholders

Government of Hong Kong Special Administrative Region (6.1%)
CHIU ANDREW /EDVANTAGE/ (5.5%)
State Street Global Advisors Asia Ltd. (3.0%)
The Vanguard Group, Inc. (2.9%)
Baillie Gifford & Co. (1.7%)
Invesco Advisers, Inc. (1.6%)
BlackRock Fund Advisors (1.6%)
JPMorgan Investment Management, Inc. (1.5%)
Norges Bank Investment Management (1.4%)
Capital Research & Management Co. (Global Investors) (1.2%)

Contact Details

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

Related Companies

HKEX Information Services Ltd.
Hong Kong Exchanges & Clearing Ltd. (Singapore)
HKEX Investment (China) Ltd.
HKEX International Ltd.
HKEX (China) Ltd.
HKEX Property Ltd.
HKEX Hosting Services Ltd.
Ganghui Financial Information Services (Shanghai) Ltd.
OTC Clearing Hong Kong Ltd.
SEHK Options Clearing House Ltd.
HKFE Clearing Corp. Ltd.
Hong Kong Futures Exchange Ltd.
Stock Exchange of Hong Kong Ltd.
Hong Kong Securities Clearing Co. Ltd.
Many Profit Ltd.
HKSCC Nominees Ltd.

Competitors

Nasdaq, Inc.
Moscow Exchange MICEX-RTS PJSC
CME Group Inc. Class A

Last Updated on 6 Apr, 2020