Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) has established a new subsidiary, Commodity Pricing and Analysis Limited (CPAL), in Dubai to enhance its global business expansion and provide better services in the commodities market [1] Group 1: Company Expansion - CPAL will primarily operate pricing management services for the commodities market and provide independent quotes and market analysis for the metals market [1] - The establishment of CPAL is seen as a significant milestone for HKEX in its strategy to expand its global footprint, particularly in the Middle East [1] Group 2: Market Development - CPAL will manage the pricing process for the sustainable metal premium initiative announced by the London Metal Exchange (LME) in April [1] - The LME has announced a pricing plan for its recognized brands to promote sustainable metal premiums, with CPAL responsible for overseeing this pricing process [1]

Group 1 - Hong Kong Stock Exchange announced the appointment of Hu Zhiheng as Managing Director and Head of Trading Operations, effective October 20, 2025 [1] - Hu Zhiheng will lead the trading operations team for both cash and derivatives markets [1] - The exchange also appointed Guo Hanxiao as Managing Director and Head of Connectivity Business, effective January 1, 2026 [1]

Core Insights - Hong Kong Stock Exchange (HKEX) announced the appointment of Hu Zhiheng as Managing Director and Head of Trading Operations, effective October 20, 2025, to enhance operational efficiency and business expansion [1] - Guo Hanxiao has been appointed as Managing Director and Head of Connectivity Business, effective January 1, 2026, to lead the newly established connectivity team [1][2] Group 1 - Hu Zhiheng brings extensive operational management experience from HSBC and JPMorgan, which is expected to support the growth of the Hong Kong market [1] - Liu Bi-yin, Chief Operating Officer of HKEX, expressed confidence that Hu's strategic vision will improve the company's operational capabilities [1] - Guo Hanxiao has over 17 years of experience at HKEX and will oversee various connectivity projects across asset classes [2] Group 2 - The connectivity business is highlighted as one of the core and successful operations of HKEX, with Guo's expertise anticipated to drive its continued development [2] - Guo holds a Master's degree in Engineering and Computer Science from Oxford University, enhancing her qualifications for the new role [2]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) announced the appointment of Hu Zhiheng as Managing Director and Head of Trading Operations, effective October 20, 2025, to enhance operational efficiency and business expansion [1] - Guo Hanxiao has been appointed as Managing Director and Head of Connectivity Business, effective January 1, 2026, to lead the newly established connectivity team [1][2] Group 1 - Hu Zhiheng brings extensive operational management experience and strategic vision from his previous roles at HSBC and JPMorgan, which will support the growth of the Hong Kong market [1] - Hu holds a Master's degree in Economics from the University of Hong Kong and Bachelor's degrees in Economics and Commerce from the University of British Columbia [1] - Guo Hanxiao has over 17 years of experience at HKEX and previously worked at UBS, holding a Master's degree in Engineering and Computer Science from the University of Oxford [2] Group 2 - The connectivity business is considered one of the core and successful operations of HKEX, with expectations that Guo's expertise will drive its continued development [2] - Guo will oversee various connectivity projects across asset classes and report to the market head, Yu Xueqin [1][2]

Core Viewpoint - CITIC Securities maintains a "Buy" rating for Hong Kong Exchanges and Clearing (HKEX) with a target price of 543 HKD, supported by expectations of liquidity from the Federal Reserve's interest rate cuts, continuous inflow of southbound funds, and valuation advantages [1] Group 1: Market Conditions - The Hong Kong stock market is expected to maintain high activity levels in Q4 due to three main factors: the Federal Reserve's shift in monetary policy providing liquidity support, continuous inflow of southbound funds, and significant valuation advantages [2][3] - Since April, HKEX has shown a recovery in overall valuation after a significant decline, driven by high average daily trading volume and sustained buying from southbound funds [1] Group 2: Financial Projections - For Q3 2025, the company is projected to achieve revenue and other income of 79.11 billion HKD, a year-on-year increase of 47.26%, and a net profit attributable to shareholders of 48.24 billion HKD, up 53.38% year-on-year [2] - Revenue forecasts for 2025, 2026, and 2027 are expected to grow by 27.94%, 5.93%, and 1.17% respectively, reaching 286.25 billion HKD, 303.21 billion HKD, and 306.75 billion HKD [2] Group 3: Valuation and Investment Appeal - As of October 10, the PE (TTM) ratio for HKEX is 36.49x, which is at the 72.15%, 71.85%, and 47.43% percentiles for the past 1, 3, and 5 years respectively, indicating a potential for further valuation recovery [1] - The Hang Seng Index's PE-TTM is approximately 11.95x, placing it at the 64th percentile over the past 20 years, highlighting the relative valuation advantage of Hong Kong stocks compared to the CSI 300's 14.24x [3]

Core Viewpoint - CITIC Securities maintains a "Buy" rating for Hong Kong Exchanges and Clearing (HKEX) with a target price of HKD 543, citing liquidity expectations from the Federal Reserve's interest rate cuts, continuous inflow of southbound funds, and valuation advantages as key factors supporting the high activity level in the Hong Kong stock market in Q4 [1] Group 1: Market Conditions - The Hong Kong stock market has shown a recovery in valuation since April, driven by high average daily trading volume and sustained buying from southbound funds [1] - As of October 10, 2025, HKEX's PE (TTM) stands at 36.49x, positioned at the 72.15%, 71.85%, and 47.43% percentiles over the past 1, 3, and 5 years respectively [1] - The company is expected to achieve high year-on-year growth in Q3 earnings, with projected revenues of HKD 79.11 billion (up 47.26%) and net profit of HKD 48.24 billion (up 53.38%) [2] Group 2: Future Projections - Revenue forecasts for 2025, 2026, and 2027 are projected to be HKD 286.25 billion, HKD 303.21 billion, and HKD 306.75 billion respectively, with year-on-year growth rates of 27.94%, 5.93%, and 1.17% [2] - Net profit forecasts for the same years are HKD 179.02 billion, HKD 194.44 billion, and HKD 198.57 billion, reflecting year-on-year growth rates of 40.88%, 8.62%, and 2.13% [2] Group 3: Supporting Factors - The Federal Reserve's shift in monetary policy, including interest rate cuts, is expected to enhance liquidity in emerging markets, providing support for the Hong Kong stock market [2] - Southbound funds have seen a net inflow exceeding HKD 1 trillion since the beginning of 2025, driven by the low valuation of Hong Kong stocks and liquidity spillover from the A-share market [3] - The valuation of the Hang Seng Index remains attractive, with a PE-TTM of approximately 11.95x, which is at the 64% percentile over the past 20 years, highlighting the "valuation pit" effect of Hong Kong stocks compared to the CSI 300's 14.24x [3]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has established a new subsidiary, Commodity Pricing and Analysis Limited (CPAL), in Dubai to enhance its commodity market pricing management services and promote sustainable metal pricing initiatives [1][2] Group 1: Company Developments - CPAL will focus on providing independent pricing and market analysis for the metals market, including the development of sustainable metal premium initiatives announced by the London Metal Exchange (LME) [1] - The establishment of CPAL is seen as a significant milestone for HKEX in expanding its global business, particularly in the rapidly growing commodity markets of China and the Middle East [2] Group 2: Market Context - Dubai has emerged as a major global commodity trading hub, ranking second in the global commodity trade index, just behind the United States [1] - The latest Global Financial Centres Index ranks Dubai as the top financial center in the Middle East and Africa, and 11th globally [1]

Group 1 - Hong Kong Stock Exchange has announced the establishment of a new subsidiary in Dubai, UAE, named Commodity Pricing and Analysis Limited (CPAL) [1] - CPAL will primarily operate pricing management services for the commodities market and provide independent quotes and market analysis for the metals market [1] - The subsidiary will also support the development of the sustainable metal premium business announced by the London Metal Exchange (LME) in April of this year [1]

Core Viewpoint - Hong Kong Stock Exchange has established a new subsidiary, Commodity Pricing and Analysis Limited (CPAL), in Dubai, UAE to enhance its services in the commodity pricing management sector [1] Group 1: Company Developments - CPAL will primarily operate in the commodity market, focusing on pricing management services [1] - The subsidiary will provide independent pricing and market analysis for the metals market [1] - CPAL aims to support the development of the sustainable metal premium business announced by the London Metal Exchange (LME) in April of this year [1]

Core Viewpoint - Citigroup's report indicates that Hong Kong Exchanges and Clearing Limited (HKEX) is expected to announce its Q3 2025 results on November 5, forecasting a net profit of HKD 4.8 billion, representing a quarter-on-quarter increase of 8% and a year-on-year increase of 52% driven by strong performance in the Hong Kong market and northbound trading volumes [1] Financial Performance - Total revenue is projected to increase by 6% quarter-on-quarter and 43% year-on-year to HKD 7.7 billion, benefiting from growth in trading and clearing fees [1] - Investment income is expected to decline by 37% quarter-on-quarter due to high base effects, a reduction in Hong Kong margin trading scale, and a decrease in investment yield [1] Market Activity - The number of active IPO applications has risen from 207 in June to 297 in September, indicating a robust IPO pipeline [1] Earnings Forecast - Based on revised daily average transaction value forecasts for the Hong Kong market of HKD 250 billion, HKD 245 billion, and HKD 264 billion for 2025 to 2027, Citigroup has raised its earnings per share forecasts for HKEX by 2% to 5% for the same period [1] - The target price for HKEX has been increased from HKD 500 to HKD 510, reflecting strong trading activity and a solid IPO pipeline [1]