Hong Kong Exchanges and Clearing (HKEX) has reported record profits for the second consecutive year, fueled by a surge in initial public offerings (IPOs) and trading volumes. The exchange’s performance underscores Hong Kong’s resurgence as a key global financial hub, particularly attracting companies seeking access to international capital.
Net profit attributable to shareholders rose 36 percent to US$2.3 billion in 2025, according to HKEX. Total revenue and other income also reached a peak of US$3.7 billion, a 30 percent increase year-over-year. Core business revenue, encompassing trading and clearing fees, climbed 32 percent compared to the previous year.
The results mark a significant turnaround for Hong Kong, which experienced a slowdown in 2023. In 2025, the city became a leading destination for IPOs, second only to the United States. Notably, the first two weeks of saw more capital raised through Hong Kong listings than was raised in London for the entirety of .
The success is partly attributable to the leadership of Bonnie Chan, who took over as chief executive in . Chan, a former capital markets partner at Davis Polk, was tasked with revitalizing the exchange amid a challenging economic climate and increasing competition from mainland China. Her tenure has coincided with a substantial increase in market activity.
In , Hong Kong welcomed 119 new listings, raising a total of US$36.7 billion – a more than 200 percent increase year-over-year. The exchange currently has a pipeline of over 400 companies that have filed to list, indicating continued strong interest.
“Global investors returned with conviction; innovation from the Chinese mainland and across Asia kept our markets vibrant; liquidity deepened; pipelines strengthened; and capital connected with opportunities,” Chan stated following the release of the results.
Average daily turnover for the full year increased by 90 percent to US$250 billion, demonstrating heightened investor participation in Hong Kong-listed stocks. Shares of HKEX rose 0.8 percent on Thursday following the announcement.
Beyond IPOs, HKEX is actively diversifying its offerings, expanding into fixed income and derivatives. “We are developing a multi-asset ecosystem which, with global investors increasingly seeking diversification opportunities, will be key to reinforcing the resilience and competitiveness of Hong Kong,” Chan explained.
Strategic investments are also underway. HKEX has taken a 20 percent stake in CMU OmniClear, a settlement house aiming to compete with Euroclear. The London Metal Exchange, owned by HKEX, has approved Hong Kong as an official warehouse location, bolstering the city’s ambitions to become a major commodities trading hub connecting China’s metals market with the rest of the world.
The recent surge in listings has been driven by several factors, including geopolitical tensions between the US and China, prompting mainland companies to seek alternative listing venues. Policy support from Beijing and streamlined listing rules implemented by Hong Kong regulators have encouraged Chinese firms to raise capital in the city.
“China geopolitical tensions have accelerated capital repatriation,” said Julia Charlton, founding partner at Charltons law firm in Hong Kong. “Three-quarters of the largest Chinese firms listed in New York now [have] parallel Hong Kong listings as a risk mitigation strategy.”
However, You’ll see emerging signs of caution. The proportion of newly listed stocks trading flat or down on their first day increased slightly in the final two months of , suggesting potential concerns about market overheating. Hong Kong’s financial authorities, including HKEX and the Securities and Futures Commission, have also issued warnings to bankers regarding the quality of some IPO documentation.
Concerns have been raised about the profitability of some newly listed companies, particularly in the technology and biotechnology sectors. “The situation may also be exaggerated by the fact that many of the tech sector Chinese companies listing on the HKEX are not profit-making and some, for example in the biotech sector, may not be revenue generating,” Charlton noted.
Despite these concerns, Chan remains optimistic. “We see a good thing that we are seeing such a high volume of activity,” she said. “We should all, between the regulators and the market, work together towards making sure that the momentum can sustain itself.”
