(Yicai Global) Nov. 11 -- Hong Kong Exchanges and Clearing, which runs the city’s stock exchange, reported record earnings for the first three quarters of the year thanks to a vibrant initial public offering market and soaring revenue from its stock connect programs.

Net profit rose 16 percent to HKD8.58 billion (USD1.1 billion) in the nine months ended Sept. 30, the company said in an earnings report today. Revenue gained 21 percent to HKD12.6 billion.

Despite the challenges brought by the coronavirus pandemic, the bourse operator benefited from historic high revenue from its stock connect programs with the mainland and a strong line-up of initial and secondary share listings.

“With robust trading volumes, a strong IPO pipeline, and an expanding product portfolio, I am confident that HKEX will play an increasingly important role in global markets,” said outgoing Chief Executive Charles Li.

For the third quarter, net profit jumped 52 percent to a record HKD3.45 billion.

But the record earnings haul failed to buoy the company’s own stock price [HKG: 0388], which fell 4 percent to close at HKD365.40 (USD47.12). The benchmark Hang Seng Index was little changed, down almost 0.3 percent.

HKEX ranked third in the world’s IPO league table for funds raised in the January to September period. Some 104 firms, including major secondary listings by big Chinese businesses such as internet services provider NetEase, online retailer JD.Com and fast-food restaurant operator Yum China Holdings, raised a total of HKD215.9 billion (USD27.8 billion).

Revenue from the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect mechanisms, which allow investors in Hong Kong and on the mainland to trade shares on each other’s exchanges, and other income was up 79 percent to a record HKD1.4 billion (USD180.5 million).

Average daily northbound trading volumes more than doubled to a nine-month high of CNY90 billion (USD13.6 billion), while southbound trading was twice last year’s amount at a record HKD23.2 billion. Northbound trading set a single-day record on July 7 with turnover of CNY191.2 billion after flows in the opposite direction set a one-day record of HKD60.2 billion on June 6.

The cash market's average daily turnover reached a record HKD125.7 billion (USD16.2 billion), up 39 percent from the same period last year, HKEX said.

Editor: Kim Taylor