Hong Kong Exchanges and Clearing (HKEX) delivered exceptional first-half 2026 results, with attributable profit rising 24% year-on-year to HK$10.6 billion ($1.35 billion). According to reports from AFP, the exchange's core revenue increased 19% to HK$15.5 billion, marking new half-year records for both profit and revenue metrics. The strong performance reflects the exchange's successful navigation of an uncertain macroeconomic environment while capitalizing on renewed investor interest in Hong Kong's capital markets.
The exchange benefited significantly from a remarkable resurgence in initial public offerings, particularly from technology and artificial intelligence companies. As reported by AFP, HKEX hosted 87 new listings during the first half of 2026, raising a combined HK$212.4 billion, nearly double the amount raised during the same period in the previous year. The strong IPO pipeline was driven by growing demand from technology companies seeking international capital market access, with Chinese artificial intelligence and technology firms choosing Hong Kong for fundraising as Beijing encourages greater use of capital markets for strategic industry development.
The IPO market revival included several landmark transactions that reinforced Hong Kong's position as a major fundraising hub. According to AFP, Chinese data-centre equipment supplier Zhongji Innolight raised about $6.8 billion in its debut last month, marking Hong Kong's largest public offering in seven years. Accounting firms KPMG and PwC estimated that Hong Kong's IPO market had raised approximately HK$210 billion by the end of June, representing the strongest first-half performance in five years. The strong pipeline has helped reinforce Hong Kong's role as a gateway for Chinese companies seeking international investors.
Beyond primary market performance, HKEX achieved record trading volumes across multiple segments during the first half. As reported by AFP, trading volumes across cash equities, derivatives and commodities reached record levels, contributing significantly to the exchange's higher revenue. The exchange also recorded record activity across its Stock Connect programmes, which link Hong Kong with mainland Chinese markets and provide international investors greater access to Chinese equities. This stronger activity highlights renewed participation from both mainland Chinese and overseas investors despite global economic and geopolitical uncertainties.
The Hong Kong stock market's current P/E ratio stands at 17.64 as of August 18, 2026, calculated using the EWH ETF. According to market analysis, this valuation falls within the historical average range of 14.29 to 16.67 over the past five years, though it approaches the upper end of this range. The exchange confirmed that Chief Executive Bonnie Chan's contract has been renewed for another three years through February 2030, providing stability during the exchange's strategic growth phase. With technology and AI companies continuing to tap Hong Kong's markets, the exchange is positioned to benefit if the IPO pipeline remains strong in the second half of 2026, though sustained market activity will depend on investor sentiment and broader economic conditions.
