When Beijing discouraged US listings of Chinese companies earlier this year, Hong Kong hoped that its own stock exchange would benefit. Instead, it has been left in limbo.

Hong Kong Exchanges and Clearing reported its second consecutive quarterly profit decline on Wednesday. Beijing’s regulatory crackdown coupled with a real estate crisis has hammered markets and knocked company listing plans. Net income fell to HK$3.25bn (US$418m) in the quarter to September, from HK$3.35bn the previous year. Revenue was flat as investment income fell. Operating expenses for the first three quarters of the year rose on higher staff and IT systems costs.

Beijing’s ongoing regulatory demands have hit one of HKEX’s key revenue streams: listings by Chinese companies. The amount raised fell 40 per cent in the third quarter compared with the previous year. Companies including NetEase’s music unit Cloud Village and electric car maker Nio have put their listing plans on hold for now.