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- Droughts drive Spanish boom in pistachio farming
- Tokyo recovers some losses to lead Asian markets higher
- Rural schools empty in North Macedonia due to exodus
- US dockworkers launch strike after labor contract expires
- Thousands evacuated as Super Typhoon Krathon approaches Taiwan
- Kenya airport whistleblower fears for his life
- Sheinbaum to take office as Mexico's first woman president
- Scientists fear underfunded Argentina research on verge of collapse
- US port officials gird for strike despite last-minute bargaining
- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
- US port officials gird for strike as labor talks stay stuck
- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
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- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
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.
P.Schmidt--CPN