Hong Kong Exchanges and Clearing, which operates the local stock market and futures market, reported a drop in third-quarter profit of 19 per cent amid lower market turnover, with analysts saying its fourth-quarter outlook is also far from rosy.

The exchange said its net profit for the July-September quarter stood at HK$ 1 billion, slightly below market estimates and down from HK$ 1.24 billion a year earlier. Brokers blamed the decline on the mainland’s economic slowdown and the European debt crisis, which has discouraged investors from placing bets on the market.