Poor 2012 for HK Exchange

HONG Kong Exchanges & Clearing (HKEx) yesterday reported worse-than-expected results for 2012 after being hit by a slump in trading volumes, few IPOs and increased costs.

The company, which recently bought the London Metal Exchange for around £1.4bn, said its net profit for last year fell 20 per cent to HK$4.1bn (£350m).

“Our markets experienced a down year in 2012, both in terms of funds raised and turnover. That was mostly in line with other major markets around the world,” said chief executive Charles Li.

Average daily turnover – a key determinant of exchange income – fell 23 per cent over the year.

High-profile hires such as new chief operating officer Henry Ingrouille also added to the wage bill.