The firm said that its revenue and profit slipped due to a decline in daily stock market activity and lower turnover-related income as well as higher operating expenses.
The firm also witnessed negative trading activity during the latest quarter as its turnover in shares traded on the exchange declined to HK$63bn ($8.11bn) from HK$75.3bn ($9.7bn) during the same quarter previous fiscal.
Hong Kong Exchanges and Clearing chairman Chow Chung Kong said the unclear economic and geopolitical backdrop will continue to raise challenges and cast shadows over the remainder of 2012.
"While 2012 is critical to the implementation of our current three-year strategic plan," Kong said.
The Group’s funds available for investment, which includes corporate funds, cash collateral, margin funds and clearing house funds, summed up to HK$46.1bn ($5.9bn) for the first quarter of 2012 against HK$44bn ($5.6bn) during the same period in 2011.
The overall size of funds available for investment as on 31 March 2012 declined by 2% or HK$1.1bn to $44.6bn ($5.7bn) from HK$45.7bn ($5.8bn) during the fourth quarter of 2011.
For the latest quarter period, its income from trading fees and trading tariff stood at HK$659m ($84.8m) compared to HK$765m ($98.5m) during the same quarter.
The firm income from stock exchange listing fees during the quarter ended on 31 March 2012 declined marginally and stood at HK$244m ($31.4m) versus HK$246m ($31.6m) during the corresponding quarter last year.
Clearing and settlement fees during the current quarter was HK$389m ($50.1m), down by HK$29m from HK$418m ($53.8m) during the same quarter period of 2011.
