- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
- Ancelotti points finger at Madrid's 'lack of intensity'
- Haiti reeling after 70 killed in gang attack
- Five Czech kids in hospital over TikTok 'piercing challenge'
- What happens next in Iran-Israel conflict?
- Country star Garth Brooks denies rape accusations
- Stubbs hits maiden century as South Africa make 343-4 against Ireland
- DR Congo to begin mpox vaccination campaign Saturday in east
- Odegaard injury has forced Arsenal to be 'different', says Arteta
- Ratcliffe refuses to guarantee Ten Hag's Man Utd future
- Meta must limit data use for targeted ads: EU court
- Mauritius to hold legislative election on November 10
- Britain qualify for America's Cup final after 60-year wait
- IMF asks Sri Lanka to protect hard-won gains
- Morata returns to Spain Nations League squad after injury
- Irish regulator to probe Ryanair use of facial recognition
- Public allowed to see video evidence in France mass rape trial
- US hiring soars past expectations in sign of resilient market
- Under-fire Ten Hag 'together' with Man Utd hierarchy
- Guardiola talks of Man City love affair as financial hearing rumbles on
Hong Kong exchange profits plunge amid IPO drought, virus woes
Hong Kong's stock exchange on Wednesday reported its biggest quarterly drop in profits for six years as tightened Chinese regulations strangled new listings and the city struggled with its worst-ever coronavirus outbreak.
Hong Kong Exchanges and Clearing (HKEX) announced a net income of HK$2.67 billion ($340 million) for the three months ended March -- 31 percent down on-year -- with quarterly revenue down 21 percent at HK$4.69 billion.
The exchange operator has now seen four consecutive drops in quarterly profits.
"We were not immune to global market sentiment, which resulted in some softness in the IPO market, reduced valuations in our investment portfolio and pricing volatility in our commodities market," said HKEX chief executive Nicolas Aguzin.
The bourse raised HK$14.9 billion in initial public offerings in the first quarter, down 89 percent on the same period last year.
In recent years Hong Kong experienced an IPO bonanza, helped in part by trade tensions between Washington and Beijing as Chinese companies sought to list closer to home.
But increased scrutiny by Chinese regulators of industries like gaming, education, property and Big Tech has dramatically curbed enthusiasm for IPOs.
Last month, Chinese conglomerate Dalian Wanda Group delayed a planned Hong Kong listing of its shopping mall unit owing to market volatility, according to Bloomberg.
Aguzin said that HKEX's IPO pipeline remained "incredibly strong", with the bourse reporting 150 active applications as of the end of March.
The exchange "demonstrated its robustness and resiliency despite ongoing market volatility and geopolitical fragility" in the past quarter, Aguzin added.
HKEX shares were down 0.30 percent in Wednesday afternoon trade, having lost 29 percent since the start of the year.
Bloomberg Intelligence analyst Sharnie Wong earlier noted that HKEX's IPO fundraising declined as Chinese issuers may be deterred by "regulatory challenges and risk-off sentiments".
In March, the bourse listed Hong Kong's first special purpose acquisition company (SPAC) -- popular investment vehicles sometimes called "blank cheque" companies.
HKEX started to allow SPAC listings this year, subject to a strict framework, with 10 applications in the works by the end of the quarter.
The introduction of SPACs in Hong Kong was a boost to the competitiveness of the underperforming bourse, following in the steps of regional rival Singapore.
Many Hong Kong firms have reported grim first-quarter results as the city imposed strict controls to tackle its worst-ever coronavirus outbreak fuelled by the Omicron variant.
Like Shanghai and Shenzhen, Hong Kong's stock exchange overall is in the midst of a slump and has fallen 22 percent in the past six months.
V.F.Barreira--PC