HONG KONG Feb 27 Hong Kong's stock exchange
operator said on Monday its 2016 net profit fell 27 percent due
to a decline in fees generated by stocks and metals trading on
the bourse as it struggled to match stellar volumes seen during
2015's record rally.
Hong Kong Exchanges and Clearing Ltd (HKEX)
reported a net profit of HK$5.8 billion ($747.36 million) for
2016, slightly below analysts' average estimate of HK$6 billion,
according to Thomson Reuters data.
"The global financial markets were volatile and overshadowed
by political and economic uncertainties. At home, there were
concerns that mainland China’s economy was slowing down and that
interest rates would rise. All these contributed to cautious
sentiment among investors and created a challenging market
environment for the Group," HKEX said in a statement.
Average daily trading on the bourse in 2016 fell 37 percent
to HK$70 billion compared with the previous year. Group profits
were also dented by the bourse's London Metal Exchange
subsidiary, which saw trading volumes fall 8 percent year-on-
year due to subdued metals demand.
The exchange's shares have risen around 8 percent this year,
compared to a 9 percent year-to-date rally in the main Hang Seng
($1 = 7.7607 Hong Kong dollars)
(Reporting by Michelle Price; Editing by Muralikumar