JPMorgan Chase raises holdings in HKEx

Nov. 24 2008 (China Knowledge) - Hong Kong Exchanges and Clearing (HKEx)<388>, the operator of Asia's second-largest stock market, announced on Friday U.S.-based financial holding company JPMorgan Chase & Co has raised its shareholding in HKEx to 6.07% from 5.55% on Nov. 14, sources reported.

The bourse operator said in a statement that JPMorgan Chase has acquired 5.63 million shares in HKEx for HK$317 million. The average price of the share transaction was HK$65.85 apiece.

HKEX earlier announced its net profit for the third quarter this year tumbled 43% to HK$959.65 billion from HK$1.68 billion a year earlier, which was the second successive drop in quarterly profit on declining trading volume amid the equity slump. 

Following disclosure of its quarterly financial report, some major investment institutions have slashed their targets for the shares of HKEx, and expected its income and net profit to continue to drop next year, dragged down by lower investment returns and listing fees.

Shares of HKEx ended flat at HK$53.00 on Friday.