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Hong Kong Exchange Operator Posts Record Quarter on Strong Trading, IPO Activity - WSJ

1. HKEX reported a 37% net profit increase to HK$4.08 billion. 2. Average daily turnover doubled to a record HK$242.7 billion. 3. Seventeen new listings raised HK$18.7 billion, indicating strong IPO activity. 4. U.S.-China trade tensions could suppress investor sentiment in the near term. 5. Shares of HKEX increased by 16%, outperforming the Hang Seng Index.

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FAQ

Why Bullish?

Increased trading volumes and new listings positively impact HKEX's valuation, similar to previous bull markets where trading volumes announced improved market confidence and stock price gains.

How important is it?

The article highlights significant financial improvements and optimism in HKEX, coupled with pressing trade risks that can influence market movements.

Why Short Term?

While current metrics indicate a positive trend, ongoing U.S.-China tensions could quickly alter investor sentiment and market dynamics.

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