(Yicai Global) Feb. 27 -- Stock exchange owner and operator Hong Kong Exchanges and Clearing Ltd. [HKG:0388] reported a decline in revenue influenced by subdued -- pre-2015 level -- activity on the cash market in Hong Kong, decreased commodities trading on the London Metal Exchange and increased derivatives contract trading on the futures exchange.
The group's revenue and other income last year was HKD11.1 billion (USD1.4 billion), down 17 percent year-on-year, HKEX said in its annual report issued today. Profit attributable to shareholders fell to HKD5.8 billion, a 27 percent drop from 2015.
Average daily trade volume on the stock exchange fell 37 percent on the year to HKD66.9 billion in 2016. The average daily number of derivatives contracts traded on the futures exchange increased 18 percent to about 463,000.
Last year, the number of initial public offerings slipped 22 percent on the main board, but jumped 32 percent on the growth enterprise market. Listing fees at HKEX rose 10 percent to HKD770 million. Trading fees and tariffs dropped 37 percent to HKD1.42 billion.
The average trade volume with the mainland under the Shanghai-Hong Kong Stock Connect slumped 50 percent to CNY3.2 billion, while the same kind of trading under the Shenzhen-Hong Kong Stock Connect reached CNY1.5 billion. Fewer tech companies are listed in Shanghai than in Shenzhen, which is closer Hong Kong.