Investment Rating - The report maintains a "Positive" investment rating for the investment banking and brokerage industry [7] Core Insights - The report highlights strong mid-year performance from 42 listed brokerages, with total revenue and net profit attributable to shareholders reaching CNY 251.89 billion and CNY 103.61 billion, respectively, reflecting year-on-year increases of 11.3% and 65.6% [2][4] - The insurance sector's mid-year disclosures confirm trends of deposit migration, increased equity allocation, and improved new policy costs, enhancing the certainty of long-term ROE improvement and potential valuation recovery [4] - Recommendations include focusing on high-performing stocks such as New China Life, China Life, Hong Kong Exchanges and Clearing, CITIC Securities, Eastmoney, Tonghuashun, and Jiufang Zhitu Holdings based on performance elasticity and valuation levels [4] Summary by Sections Industry Overview - The non-bank financial index decreased by 0.8% this week, underperforming the CSI 300 by 3.5%, ranking 23rd out of 31 sectors [5] - Year-to-date, the non-bank financial index has increased by 13.5%, with a relative underperformance of 0.8% against the CSI 300, ranking 19th out of 31 sectors [5] Market Performance - Market activity has shown signs of recovery, with average daily trading volume across both exchanges reaching CNY 298.31 billion, up 15.29% week-on-week [5][36] - The margin financing balance increased to CNY 2.24 trillion, reflecting a week-on-week rise of 4.52% [5][42] Brokerage Data Tracking - The report notes a recovery in trading activity, with the average daily trading volume exceeding the 2024 average, indicating a gradual improvement in brokerage business profitability [36] - The report emphasizes the importance of monitoring the stock and bond market fluctuations for brokerage self-operated income [40] Insurance Sector Insights - The insurance industry reported a cumulative premium income of CNY 420.85 billion in July 2025, marking a year-on-year increase of 6.75% [20][21] - The total assets of the insurance sector reached CNY 39.59 trillion, with a month-on-month increase of 0.95% [25][26] Investment Banking Activity - In July 2025, equity financing decreased significantly to CNY 53.38 billion, down 90.2% month-on-month, while bond financing totaled CNY 783 billion, down 11.3% [44] - The report anticipates an increase in stock underwriting scale due to the advancement of refinancing regulations [47] Asset Management and Derivatives - The report indicates a decline in new issuance of collective asset management products, with July 2025 issuance at 5.489 billion units, down 43.6% [49] - The futures market saw a significant increase in trading volume, with July 2025 transactions reaching CNY 62.23 trillion, up 34.02% [54]

Group 1 - Hong Kong Stock Exchange (HKEX) announced optimization of collateral arrangements for its securities and derivatives clearing houses to enhance market efficiency and reduce costs for participants [1] - The interest calculation method for cash collateral will be adjusted to align with international market standards, calculated daily as the overnight reference rate minus a fee [1] - The financing cost for non-cash collateral will be reduced from 0.5% per annum to 0.25% [1] Group 2 - The new interest payment and fee policies will be uniformly adopted by the Central Clearing and Settlement System, Hong Kong Futures Clearing Company, and Hong Kong Options Clearing Company [1] - The fee for the period from October 2025 to December 2026 will be set at 0.8%, decreasing by 10 basis points annually until it reaches 0.5% by the end of 2028 [1] - HKEX aims to enhance the efficiency of collateral usage, facilitating market participants in executing various trading strategies and managing investment risks [2]

Group 1 - Hong Kong Stock Exchange (HKEX) announced optimization of collateral arrangements for its securities and derivatives clearing houses to enhance market efficiency and reduce costs for participants [1] - The interest calculation method for cash collateral will be adjusted to align with international market standards, calculated daily as the overnight reference rate minus fees [1] - The financing cost for non-cash collateral will be reduced from 0.5% per annum to 0.25% [1] Group 2 - The new arrangements will be uniformly adopted by the Central Clearing and Settlement System, Hong Kong Futures Clearing Corporation, and Hong Kong Stock Options Clearing Limited, applicable to all accepted currencies [1] - The fee for the period from October 2025 to December 2026 will be set at 0.8%, decreasing by 10 basis points annually until it reaches 0.5% by the end of 2028 [1] - The new policies have been approved by the Hong Kong Securities and Futures Commission and will take effect on October 2, 2025 [1] Group 3 - HKEX's Chief Operating Officer emphasized the commitment to enhancing the vitality, resilience, and competitiveness of the Hong Kong market through these new arrangements [2] - The measures aim to improve the efficiency of collateral usage, facilitating participants in executing various trading strategies and managing investment risks [2] - Recent initiatives to increase position limits for stock options and index derivatives have significantly enhanced the capital efficiency of settled positions [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first half of 2025, with a significant increase in various business segments, indicating strong market performance and growth potential [1][2] Financial Performance - HKEX's revenue and other income for the first half of 2025 reached HKD 14.076 billion, a 33% increase compared to the first half of 2024 [1] - Shareholder profit attributable to the company was HKD 8.519 billion, up 39% from the previous year [1] - The main business revenue increased by 34% year-on-year, driven by record trading volumes in the cash and stock options markets [1] Business Growth - New stock fundraising in the first half of 2025 grew over eight times compared to the same period in 2024 [2] - Trading and settlement fees increased by 33% due to a significant rise in trading volumes [2] - The average daily trading amount for the Shanghai-Hong Kong Stock Connect reached RMB 171.3 billion, a 32% increase year-on-year [2] Market Initiatives - HKEX plans to implement several measures to enhance market competitiveness, including shortening the settlement cycle for the cash market and expanding the paperless listing mechanism [1] - The company aims to optimize IPO pricing regulations and introduce a phased reduction in the minimum tick size for securities trading [1] Investor Engagement - The participation of mainland investors in offshore markets is increasing, with the average daily trading amount for the Hong Kong Stock Connect reaching HKD 111 billion, nearly three times that of the previous year [2] - Revenue from the Shanghai-Hong Kong Stock Connect rose to HKD 18.13 billion, a record high for the first half of the year [2] Stock Performance - As of the report date, HKEX's stock price was HKD 453.4, reflecting a year-to-date increase of over 56%, with a total market capitalization of HKD 574.6 billion [2]

人民财讯9月1日电，香港交易所今天宣布，将优化旗下证券及衍生产品结算所的按金抵押品安排。有关 措施是香港交易所致力提升市场效率及降低市场参与者成本的工作之一。香港交易所将调整旗下结算所 向其参与者支付的现金抵押品利息的计算方法，并下调对非现金抵押品的融通费用。在新的安排下，现 金抵押品的利息支付及相关收费将根据国际市场标准按日计算，计算方式为隔夜参考利率减去手续费。 此计算方式将被香港中央结算有限公司(中央结算)、香港期货结算有限公司(期货结算)和香港联合交易 所期权结算所有限公司(期权结算)统一采用，且适用于所有获接纳为抵押品的货币种类。2025年10月至 2026年12月的手续费将设定为0.8%，其后每年下调10个基点，直至2028年底降至0.5%。非现金抵押品 的融通费用亦将由每年0.5%下调至0.25%。 ...

Core Viewpoint - Hong Kong Stock Exchange is enhancing its collateral arrangements for securities and derivatives clearinghouses to improve market efficiency and reduce costs for participants [1] Group 1: Changes in Collateral Arrangements - The exchange will adjust the interest calculation method for cash collateral, aligning it with international market standards and calculating it daily based on the overnight reference rate minus fees [1] - The new fee structure for cash collateral will set the fee at 0.8% from October 2025 to December 2026, decreasing by 10 basis points annually until it reaches 0.5% by the end of 2028 [1] - The financing cost for non-cash collateral will be reduced from 0.5% per year to 0.25% [1]

格隆汇9月1日｜香港交易所：2025年上半年收入及其他收益为140.76亿元，较2024年上半年上升33%； 股东应占溢利为85.19亿元，较2024年上半年上升39%。 ...

人民财讯9月1日电，香港交易所披露2025年中期业绩报告，集团2025年上半年收入及其他收益和溢利创 历来半年度新高。2025年上半年收入及其他收益为140.76亿港元，较2024年上半年上升33%；股东应占 溢利为85.19亿港元，较2024年上半年上升39%。 ...

Core Viewpoint - The Hong Kong Stock Exchange reported record high interim results for the first half of 2025, with significant increases in revenue and profit compared to the previous year [1] Financial Performance - The total revenue and other income for the first half of 2025 reached 14.076 billion, representing a 33% increase from the first half of 2024 [1] - The profit attributable to shareholders for the first half of 2025 was 8.519 billion, marking a 39% increase compared to the first half of 2024 [1]

Financial Performance - The group achieved a record high in revenue and profit for the first half of 2025, with revenue and other income reaching HKD 14.08 billion, a 33% increase compared to HKD 10.62 billion in the first half of 2024[18]. - Shareholder profit amounted to HKD 8.52 billion, reflecting a 39% increase from HKD 6.13 billion in the same period last year[18]. - The main business revenue rose by 34% to HKD 12.95 billion, driven by record trading volumes in the spot and stock options markets[19]. - EBITDA for the first half of 2025 was HKD 10.94 billion, a 43% increase from HKD 7.66 billion in the previous year, with an EBITDA margin of 79%, up 6 percentage points[18]. - Basic earnings per share increased by 39% to HKD 6.74, compared to HKD 4.84 in the first half of 2024[19]. - The operating profit for the first half of 2025 was HKD 10,196 million, up from HKD 6,125 million in the first half of 2024[121]. - The total comprehensive income for the six months ended June 30, 2025, was HKD 9,045 million, compared to HKD 6,179 million in 2024, marking a 46.5% increase[186]. Trading Activity - The average daily trading amount of equity securities on the exchange was HKD 222.8 billion for the six months ending June 30, 2025, up 122% from HKD 100.3 billion in the same period of 2024[20]. - The average daily trading amount for the Stock Connect (Shanghai and Shenzhen) was RMB 171.3 billion, a 32% increase from RMB 130.2 billion in the previous year[20]. - The average daily trading amount of the Hong Kong Stock Connect reached HKD 111.0 billion, a significant increase of 196% from HKD 37.5 billion in the same period last year[20]. - The average daily trading amount in the securities market reached HKD 240.2 billion, a year-on-year increase of 118%[34]. - The average daily trading volume of LME metal contracts increased by 3% year-on-year, maintaining robust trading activity despite market volatility[37]. - The average daily trading amount for the Shanghai-Hong Kong Stock Connect reached RMB 171.3 billion, a 32% increase compared to the first half of 2024[60]. - The average daily trading volume of derivative contracts reached 1,700,322 contracts, an 11% increase compared to the first half of 2024, setting a new half-year record[82]. Operating Expenses - Operating expenses increased by 6% to HKD 2.97 billion, primarily due to a HKD 90 million fine paid to the FCA related to the 2022 nickel market incident[18]. - Operating expenses increased by 5% due to higher employee costs, but were partially offset by a decrease in charitable donations[24]. - The company’s operating expenses increased to HKD 2,973 million, compared to HKD 2,794 million in the previous year, reflecting a rise of 6.4%[185]. - Operating expenses increased by 22% in H1 2025, primarily due to a one-time FCA fine of $90 million and legal costs of $50 million related to the nickel market incident[94]. Capital Expenditure - The company announced a capital expenditure of HKD 1.81 billion for the purchase of a permanent headquarters property[19]. - Capital expenditure for the headquarters property was HKD 1.805 billion, marking a significant investment in company infrastructure[25]. - The company completed the acquisition of three full floors of the Trading Plaza for HKD 1.8 billion as part of its strategy to establish a permanent headquarters, with a total investment of HKD 6.3 billion planned for the entire project[110]. - The group incurred capital expenditures of HKD 2,559 million for the acquisition of the Hong Kong Stock Exchange headquarters property during the period[189]. Market Developments - The company plans to implement new measures to enhance market competitiveness and attractiveness in the second half of 2025, including shortening the settlement cycle for the spot market[4]. - The company has received a record number of new stock listing applications in the past six months, indicating strong market interest[4]. - The introduction of the "Tech Company Fast Track" aims to assist technology and biotech companies in preparing for listings more efficiently, enhancing market quality and transparency[39]. - The launch of the first Hang Seng Tech Index call options ETF and the first individual stock leveraged and inverse products further strengthens Hong Kong's position as a leading ETP market in the region[39]. Charity and Community Initiatives - The first half of 2025 saw a significant increase in donations from the Hong Kong Stock Exchange Charity Fund, rising 160% to HKD 78 million[19]. - The company plans to allocate at least HKD 25 million for a new flagship charity program focused on supporting caregivers as part of its community initiatives[115]. Governance and Compliance - Hong Kong Exchanges and Clearing Limited (HKEX) has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per B.2.2, for the six months ending June 30, 2025[152]. - The company has adopted the Standard Code as its code of conduct for directors in securities trading, with all directors confirming compliance for the six months ending June 30, 2025[154]. - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2025[139]. Shareholder Information - The interim dividend declared for the year ending December 31, 2025, is HKD 6.00 per share[171]. - The record date for the interim dividend is September 5, 2025, with the payment date set for September 16, 2025[172]. - The company purchased a total of 53,767 shares for a total amount of HKD 19 million under the share incentive plan during the six months ended June 30, 2025[168].