Hong Kong Exchanges & Clearing Ltd.
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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
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
| 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
- Co-President, Chief Executive & Operating Officer: Chi Kin Tai
- Co-President: Romnesh Lamba
- Group Chief Financial Officer: Vanessa Lau
- Group Chief Technology Officer: Chung Kwong Leung
- Group Chief Information Officer: Trevor William Spanner
Shareholders
- Government of Hong Kong Special Administrative Region (5.9%)
- State Street Global Advisors Asia Ltd. (3.0%)
- The Vanguard Group, Inc. (2.5%)
- Capital Research & Management Co. (World Investors) (1.8%)
- BlackRock Fund Advisors (1.7%)
- Baillie Gifford & Co. (1.7%)
- Invesco Advisers, Inc. (1.6%)
- JPMorgan Investment Management, Inc. (1.4%)
- Norges Bank Investment Management (1.4%)
- Capital Research & Management Co. (Global Investors) (1.4%)
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
- Qianhai Mercantile Exchange Co. ,Ltd
- 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
- PT Telkom Indonesia (Persero) Tbk Class B
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Last Updated on 24 Feb, 2021
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