The Chief Executive Officer of Hong Kong Exchanges & Clearing (HKEX) Charles Li is stepping down after 10 years.

Li, 59, will continue to lead the exchange until his contract expires in October next year, or leave earlier if a replacement is found, according to a filing.

The company posted an unexpected decline in profit in the first quarter as its investment income slumped, offsetting a surge in trading. 

HKEX Chairman Laura Cha praised Li’s leadership and thanked him for giving them as much time as possible to ensure a smooth transition. "The board is confident that the succession process will be smooth and orderly and that the group is on a strong foundation".

Li grew up in the north-western Gansu province during the Cultural Revolution. He studied English literature at Xiamen University. Li has a law degree from Columbia University. He worked in law firms, including Davis Polk & Wardell, and worked for 16 years in banking starting with Merrill Lynch and later JPMorgan Chase, where he was China chairman until he joined HKEX in 2009.