Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third-largest stock exchange, reported another record year in terms of annual profits that jumped 9 percent to HK$12.54 billion (US$1.6 billion). The per-share earnings for the year came in at HK$9.9, trailing the consensus analyst forecast by 14 percent.
The revenue of the exchange operator from its core business came in at HK$20 billion, which is up 10 percent from the previous year. This figure was mainly benefited from the higher trading and clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.
Read this Term fees that increased by 29 percent in average daily turnover to HK$166.7 billion.
Average daily turnover on the exchange jumped on cash equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling partial ownership in the company.There are many reasons for individuals investing in equities. In the United States for example, equity markets are amongst the largest in terms of transactions, investors, and turnover.Why Invest in Equities?Overall, the appeal of equities the potential for high returns. Most portfolios feature some portion of equity exposure for growth.In terms of investing, younger individuals can afford to take on higher levels of equity exposure, i.e. risk. Consequently, these people have more stocks in their portfolio because of their potential for returns over time. However, as you are planning to retire, equity exposure becomes more of a risk.This why many investors or holders of retirement accounts transition at least part of their investments from stocks to bonds or fixed-income as they get older.Equity holders can also benefit through dividends, which differ notably from capital gains or price differences in stocks you have purchased.Dividends reflect periodic payments made from a company to its shareholders. They’re taxed like long-term capital gains, which vary by country.
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling partial ownership in the company.There are many reasons for individuals investing in equities. In the United States for example, equity markets are amongst the largest in terms of transactions, investors, and turnover.Why Invest in Equities?Overall, the appeal of equities the potential for high returns. Most portfolios feature some portion of equity exposure for growth.In terms of investing, younger individuals can afford to take on higher levels of equity exposure, i.e. risk. Consequently, these people have more stocks in their portfolio because of their potential for returns over time. However, as you are planning to retire, equity exposure becomes more of a risk.This why many investors or holders of retirement accounts transition at least part of their investments from stocks to bonds or fixed-income as they get older.Equity holders can also benefit through dividends, which differ notably from capital gains or price differences in stocks you have purchased.Dividends reflect periodic payments made from a company to its shareholders. They’re taxed like long-term capital gains, which vary by country.
Read this Term jumped by 32 percent, along with a 4 percent and 12 percent increase in stock listing fees and market data fees, respectively.
“HKEX had a strong year in 2021, despite a turbulent macro backdrop and the ongoing pandemic,” said Nicolas Aguzin, the CEO of HKEX. “Revenue and other income and profit both reached record highs.”
Dull Q4
Despite the impressive yearly performance that was mostly dragged by the performance of Q1, the numbers for the final quarter of the year remained dull. The net income for the quarter ended in December dropped by 8.6 percent year-over-year to HK$2.67 billion ($342 million).
The exchange facing a dent in its performance due to the Chinese crackdown on technology giants and debt-ridden developers. Hong Kong, which is also one of the favorite markets for Asian companies to go public, saw a sharp decline in the number of initial public offerings (IPOs) on the bourse.
HKEX saw a decline in the IPO proceeds last year since 2017 as 98 listings raised HK$331.4 billion, a total of 17 percent.
The Chairman of HKEX, Laura Cha, said: “The global economic recovery is expected to continue throughout 2022, although numerous challenges posed by uncertainty surrounding the pandemic recovery, ongoing geopolitical risks, restrictions on travel, and upcoming interest rate hikes will all affect our business in the year ahead.”
Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third-largest stock exchange, reported another record year in terms of annual profits that jumped 9 percent to HK$12.54 billion (US$1.6 billion). The per-share earnings for the year came in at HK$9.9, trailing the consensus analyst forecast by 14 percent.
The revenue of the exchange operator from its core business came in at HK$20 billion, which is up 10 percent from the previous year. This figure was mainly benefited from the higher trading and clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.
Read this Term fees that increased by 29 percent in average daily turnover to HK$166.7 billion.
Average daily turnover on the exchange jumped on cash equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling partial ownership in the company.There are many reasons for individuals investing in equities. In the United States for example, equity markets are amongst the largest in terms of transactions, investors, and turnover.Why Invest in Equities?Overall, the appeal of equities the potential for high returns. Most portfolios feature some portion of equity exposure for growth.In terms of investing, younger individuals can afford to take on higher levels of equity exposure, i.e. risk. Consequently, these people have more stocks in their portfolio because of their potential for returns over time. However, as you are planning to retire, equity exposure becomes more of a risk.This why many investors or holders of retirement accounts transition at least part of their investments from stocks to bonds or fixed-income as they get older.Equity holders can also benefit through dividends, which differ notably from capital gains or price differences in stocks you have purchased.Dividends reflect periodic payments made from a company to its shareholders. They’re taxed like long-term capital gains, which vary by country.
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling partial ownership in the company.There are many reasons for individuals investing in equities. In the United States for example, equity markets are amongst the largest in terms of transactions, investors, and turnover.Why Invest in Equities?Overall, the appeal of equities the potential for high returns. Most portfolios feature some portion of equity exposure for growth.In terms of investing, younger individuals can afford to take on higher levels of equity exposure, i.e. risk. Consequently, these people have more stocks in their portfolio because of their potential for returns over time. However, as you are planning to retire, equity exposure becomes more of a risk.This why many investors or holders of retirement accounts transition at least part of their investments from stocks to bonds or fixed-income as they get older.Equity holders can also benefit through dividends, which differ notably from capital gains or price differences in stocks you have purchased.Dividends reflect periodic payments made from a company to its shareholders. They’re taxed like long-term capital gains, which vary by country.
Read this Term jumped by 32 percent, along with a 4 percent and 12 percent increase in stock listing fees and market data fees, respectively.
“HKEX had a strong year in 2021, despite a turbulent macro backdrop and the ongoing pandemic,” said Nicolas Aguzin, the CEO of HKEX. “Revenue and other income and profit both reached record highs.”
Dull Q4
Despite the impressive yearly performance that was mostly dragged by the performance of Q1, the numbers for the final quarter of the year remained dull. The net income for the quarter ended in December dropped by 8.6 percent year-over-year to HK$2.67 billion ($342 million).
The exchange facing a dent in its performance due to the Chinese crackdown on technology giants and debt-ridden developers. Hong Kong, which is also one of the favorite markets for Asian companies to go public, saw a sharp decline in the number of initial public offerings (IPOs) on the bourse.
HKEX saw a decline in the IPO proceeds last year since 2017 as 98 listings raised HK$331.4 billion, a total of 17 percent.
The Chairman of HKEX, Laura Cha, said: “The global economic recovery is expected to continue throughout 2022, although numerous challenges posed by uncertainty surrounding the pandemic recovery, ongoing geopolitical risks, restrictions on travel, and upcoming interest rate hikes will all affect our business in the year ahead.”
Source: https://www.financemagnates.com/forex/hkex-posts-9-jump-in-2021-profits-but-sees-decline-in-q4/