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

NET PROFIT: The stock-exchange operator is expected to post a 7.4% increase, compared with the same period a year earlier, in net profit to 4.77 billion Hong Kong dollars, equivalent to US$607.9 million, according to the consensus estimate of analysts polled by Visible Alpha.

REVENUE: Revenue is estimated to have risen 7.6% on year to HK$7.77 billion, according to Visible Alpha.

HKEX's shares fell over 6% during the quarter, taking losses to 1.3% for the year as of Tuesday.

WHAT TO WATCH:

--AVERAGE DAILY VOLUME: The Hong Kong average daily turnover activity is the most important earnings and share price driver for HKEX, as the exchange generates over half of its revenue from equities-related businesses, said Michael Zhang, a Citi Research analyst, in a recent note. "There are multiple structural drivers to support sustainably higher trading activity in [Hong Kong]," Zhang said, adding that the turnover contribution from robust IPO activity has likely been overlooked by markets.

--IPO PIPELINE: Funds raised during the first seven months of 2026 more than doubled compared to the same period a year earlier, according to HKEX. "The IPO pipeline will be a key forward-looking indicator to watch and hear commentary around," signaling whether the exceptional strength in funds raised in the first half will be continued, said Roy Van Keulen, equity analyst at Morningstar.

--OUTLOOK: Shares of HKEX have been largely flat this year likely due to cautiousness around earnings growth outlook against a high base, said Citi's Zhang. There is also a lack of earnings visibility on long-term growth initiatives, he added. Commentary about the earnings outlook for the rest of the year will be closely watched.