Hong Kong Exchange and Clearing Ltd

Hong Kong Exchanges and Clearing reported record first-half 2026 results, with revenue and other income up 19% year-on-year to HKD16.7 billion and profit after tax up 24% to HKD10.6 billion. Earnings per share rose 24% to HKD8.36, and the board declared a first interim dividend of HKD7.43 per share, representing 90% of profit attributable to shareholders. Headline average daily turnover climbed 18% to HKD283 billion, with the second quarter setting a record quarterly high of HKD289 billion, while derivatives and commodities trading volumes rose 6% and 18% respectively. Net investment income fell 11% to HKD2.56 billion due to higher rebates and lower interest rates, and operating expenses increased 6%, or 9% excluding non-recurring items. Management highlighted strong growth in Stock Connect, with Northbound ADT more than doubling, and noted that exchange-traded products contributed 17% of headline ADT in the first half, up from about 5% in 2021.

Crude oil prices closed at their highest level in nearly four weeks after the United Arab Emirates suspended all transactions with Iran. West Texas Intermediate crude for September delivery closed at 85.83 dollars per barrel, up 1.1 percent, while Brent for October delivery closed at 91.62 dollars, up 0.7 percent. U.S. public debt surged past 40 trillion dollars for the first time amid fiscal crisis concerns. Treasury Secretary Scott Bessent announced an increase in buyback amounts for 10- to 30-year bonds of at least twofold, from 2 billion dollars to 4 billion dollars per operation, starting September 9 through November 4, 2026. Minutes from the Federal Reserve's July meeting signaled a possible rate hike if inflation does not slow, with the FOMC voting 9 to 3 to hold rates steady. China opened trading of offshore government bond futures for the first time through Hong Kong Exchanges and Clearing on August 3. Sources said a temporary U.S.-Canada trade deal may reduce steel and aluminum tariffs to 25 percent and auto tariffs to 15 percent. North Korea denied direct contact between Kim Jong Un and Donald Trump. SK Hynix announced a share buyback worth 4 trillion won, up to 24 million shares, between August 20 and November 19, and raised its shareholder return target to more than 50 percent of cumulative free cash flow for 2025 to 2027. Moderna shares surged 177 percent to a record high after its mRNA cancer treatment with Merck reduced the risk of melanoma recurrence in a final-stage trial, causing short sellers to lose about 5.5 billion dollars.

Geely Automobile Holdings Limited announced a management reshuffle. Li Shufu resigned as chairman of the board and executive director with effect from 18 August 2026, and was appointed honorary chairman for life. An Conghui succeeded him as chairman of the board. The Hong Kong Exchanges and Clearing board approved a three-year contract renewal with chief executive Bonnie Chan, running from 1 March 2027 to 28 February 2030. Junzheng Co announced that the H-share offer price will not exceed HK$102.80 per share. The base offering size for the global offering is 31.2873 million shares, rising to a maximum of 35.9803 million shares if the over-allotment option is exercised in full. US President Donald Trump said he would not seek to extend the memorandum of understanding with Iran. The previously set 60-day negotiation window expired on 17 August, and US-Iran talks have stalled over issues including the Strait of Hormuz. Fudan Microelectronics plans to invest 17.5 million yuan in intangible assets to establish Zhuoyuan Hongxin. Shanghai Fudan's net profit for the first half of the financial year rose 338.58 percent year on year. Jihong Co's first-half net profit rose 33.52 percent year on year. Nanhua Futures' first-half net profit rose 67.91 percent year on year. Congyu Intelligent Agricultural plans to place up to 140 million shares to raise about HK$33.6 million.

Hong Kong Exchanges and Clearing has revealed it is prioritising a plan to extend trading hours in its derivatives market. A spokesperson explained the move is part of efforts to strengthen competitiveness as an international financial centre, and that implementation will require consultation with market participants and regulatory approval. The review of cash market trading hours is said to be at a very early stage. According to a Bloomberg report, HKEX is scrutinising proposals including bringing forward the stock trading start time by 30 minutes and scrapping the lunch break, and has communicated reform ideas to major brokerages and trading firms. The reform could affect the southbound Stock Connect scheme through which mainland Chinese investors access the Hong Kong stock market, with southbound flows accounting for about 23 percent of Hong Kong stock market turnover in 2025.

Hong Kong has started the trial operation of its new gold central clearing system, backed by several major banks, in a move to strengthen the city's push to become a major bullion-trading hub. The system introduces HAU, a new gold price benchmark now live on Bloomberg, and Hong Kong Precious Metals Central Clearing Ltd., a government-owned clearing company, has completed its first gold deposits and transaction settlements with multiple banks and clients including mining companies, refiners, jewelers and investors. JPMorgan Chase, HSBC Holdings, UBS Group and five Chinese banks are represented on the clearing company's board, while HSBC said it would expand its gold storage capacity in Hong Kong to 200 tons. Spot gold traded near $4,130 an ounce on Tuesday, and Hong Kong is also working with the Shanghai Gold Exchange and Hong Kong Exchanges and Clearing on broader gold-market infrastructure, including a possible yuan-denominated futures contract.

Hong Kong Exchanges and Clearing Limited welcomed the listing of the first exchange traded fund to track the HKEX Tech 100 Index, launched by E Fund Management (Hong Kong) Co Limited. The E Fund (HK) HKEX Tech 100 Index ETF, stock code 3456, is the first investment product based on an HKEX-branded equity index, marking a milestone for the group's index business. The listing coincides with the 26th anniversary of HKEX's debut as a listed company. HKEX Chief Executive Officer Bonnie Y Chan said the ETF combines a representative Hong Kong technology benchmark with a widely accessible investment vehicle, supporting investors in diversifying their portfolios. The HKEX Tech 100 Index tracks the 100 largest technology-related companies by market capitalisation listed in Hong Kong, spanning innovative and new economy sectors.

Hong Kong Exchanges and Clearing Limited will launch 5-year China Government Bond Futures on 3 August 2026, following an announcement by the Securities and Futures Commission. HKEX Chairman Carlson Tong called the debut an important milestone for Hong Kong's Fixed-Income and Currencies ecosystem, while CEO Bonnie Y Chan said the contracts will provide efficient risk management for Chinese bond investors and support the growth of the RMB product ecosystem. The new futures are part of HKEX's broader RMB and Mainland-related suite that includes Stock Connect, Bond Connect, Swap Connect, and MSCI China A50 Connect Index Futures. International investors' onshore bond holdings in the China Interbank Bond Market have grown from RMB0.8 trillion in June 2017 to around RMB3.2 trillion at the end of May 2026.