By Kimberley Kao

Hong Kong Exchanges & Clearing is scheduled to report results for the second quarter on Wednesday. Here's what you need to know:

NET PROFIT: The stock-exchange operator is expected to post a 30% increase in net profit to 4.10 billion Hong Kong dollars, equivalent to US$524.3 million, according to the consensus estimate of analysts polled by Visible Alpha. That would compare with HK$3.155 billion a year earlier.

REVENUE FORECAST: Revenue is estimated to have risen 26% to HK$6.84 billion, according to Visible Alpha.

Shares rose 21% in the April-June period and are up around 49% this year. Chinese policymakers have been rolling out measures to boost capital markets, streamline listing processes and open up access to more investors, all while AI advancements have helped driven technology stocks higher.

WHAT TO WATCH:

--AVERAGE DAILY VOLUME: Headline average daily turnover likely rose an estimated 95% on year during the quarter, driven by positive market sentiment, Citi Research analyst Michael Zhang said in a note.

Southbound flows remain the key driver, reflecting incremental demand and strengthening market confidence, CGS International analysts said in a note. Sustained outperformance of average daily turnover could be a stock rerating catalyst, they added.

--IPO PIPELINE: Hong Kong is expected to top global rankings in IPO proceeds in 2025, CGSI's Laura Li Zhiyi and Michael Chang said in a note. More "jumbo" IPOs are expected in the second half. IPO fundraising has reached HK$128 billion as of August, they estimate, which is 80% of their earlier full-year forecast.

--OUTLOOK: HKEX's commentary around the near- and long-term impact of uncertainty around tariffs on China's economy, and in turn HKEX's listing and trading activity, will be key to watch, said Roy Van Keulen, equity analyst at Morningstar.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

August 18, 2025 23:38 ET (03:38 GMT)

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