Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The company achieved record high semi-annual performance with total revenue and other income reaching HKD 141 billion, a year-on-year increase of 33%, and net profit attributable to shareholders at HKD 85 billion, up 39% year-on-year [7] - The significant growth in performance is attributed to improved investment sentiment supported by mainland policies, leading to increased participation from mainland investors in offshore markets, which boosted trading volumes in the Hong Kong stock market [7] - The report forecasts continued strong growth for the company, with expected shareholder profits of HKD 174.19 billion, HKD 192.62 billion, and HKD 207.88 billion for 2025-2027, corresponding to growth rates of 33%, 11%, and 8% respectively [7] Financial Performance Summary - Total revenue (in million HKD) for 2023A, 2024A, 2025E, 2026E, and 2027E is projected at 20,516, 22,374, 27,785, 30,524, and 32,970 respectively, with year-on-year growth rates of 11.16%, 9.06%, 24.18%, 9.86%, and 8.01% [1] - Net profit attributable to shareholders (in million HKD) for the same years is expected to be 11,862, 13,050, 17,419, 19,262, and 20,788, with growth rates of 17.70%, 10.02%, 33.48%, 10.58%, and 7.92% [1] - The latest diluted EPS is projected to be 9.36, 10.29, 13.74, 15.19, and 16.40 for the years 2023A to 2027E [1] Market Data - The closing price of the stock is HKD 441.20, with a market capitalization of approximately HKD 559.37 billion [5] - The stock has a price-to-earnings (P/E) ratio of 47.16 for 2023, decreasing to 26.91 by 2027 [1][5] - The company has a book value per share of HKD 44.89 and a price-to-book (P/B) ratio of 9.83 [6][5]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first half of 2025, driven by a significant market recovery and a strong IPO pipeline [1][2]. Group 1: Financial Performance - HKEX's revenue and other income for H1 2025 reached HKD 14.076 billion, a 33% increase compared to H1 2024 [1] - Shareholder profit for H1 2025 was HKD 8.519 billion, up 39% from H1 2024 [1] - Daily trading volume in the cash market hit a half-year record, doubling compared to H1 2024 [1] Group 2: IPO Activity - HKEX completed over 50 IPOs in the first half of 2025, raising nearly USD 17 billion, maintaining a leading global IPO ranking [2] - There are approximately 230 companies in the IPO pipeline, indicating strong demand for listings [2] - HKEX aims to collaborate with mainland exchanges to support companies with overseas expansion plans [3] Group 3: Investment Trends - Global investors are increasingly looking to diversify into Asian markets, particularly China, which is seen as a favorable investment destination [4] - High foreign participation in IPOs, especially among cornerstone investors, reflects strong interest from international investment funds [4] Group 4: Technology and Confidentiality - HKEX has received 50 applications from companies under the new technology listing framework, which allows for confidential submissions [5] - The confidentiality provision is designed to protect sensitive information during the approval process while ensuring transparency at the time of the IPO [5] Group 5: Trading Hours and Market Accessibility - There is ongoing discussion about the potential for 24-hour trading at HKEX, which could enhance market accessibility for investors [6] - The company is evaluating the implications of extended trading hours on operational processes and risk management [6] - HKEX is committed to optimizing trading conditions and ensuring competitive positioning against other exchanges [6]

Group 1: Policy and Economic Developments - The Ministry of Finance and the State Taxation Administration announced that childcare subsidies will be exempt from personal income tax starting January 1, 2025 [1] - The China Securities Regulatory Commission (CSRC) stated that the capacity of the futures market to serve the real economy is continuously improving, with 131 listed commodity futures and options, 84 of which are industrial products, accounting for 64% [1] Group 2: Market Performance and Company News - Hong Kong Exchanges and Clearing Limited (HKEX) reported record high revenue and profit for the first half of 2025, with revenue and other income reaching HKD 14.076 billion, a 33% year-on-year increase, and net profit attributable to shareholders at HKD 8.519 billion, a 39% increase [2] - Muyuan Foods reported a net profit growth of 1169.77% year-on-year for the first half of the year and proposed a dividend of 9.32 CNY per share [5] - Weicai Technology achieved a net profit of 101 million CNY in the first half of the year, representing an 831.03% year-on-year increase [11] - Tianwei Foods is planning to issue H-shares and list on the Hong Kong Stock Exchange [13] - Wan Tong Development's subsidiary, Shudu Technology, is expected to begin mass production of PCIe 5.0 switching chips by the end of 2025 [14] - Baibang Technology's subsidiary renewed its service supplier agreement with Apple [15]

Core Insights - Hong Kong Stock Exchange (HKEX) reported a record high half-year performance for 2025, with revenue and other income reaching HKD 14.076 billion, a 33% year-on-year increase [1] - The average daily trading volume in the securities market surged to HKD 240.2 billion, marking an 118% increase compared to the previous year [1] - The new stock market fundraising amount in Hong Kong returned to the top globally, with a total that is over eight times that of the first half of 2024 [1] Group 1 - HKEX's strong performance in the first half of 2025 was driven by favorable market conditions, increased interest in non-USD assets, and active participation from both international and mainland investors [1] - The average daily trading volume in the Hong Kong ETF market reached HKD 33.8 billion, a 184% increase year-on-year [1] - The number of new stock listing applications being processed rose to 207, more than double the 84 applications as of December 31, 2024 [1] Group 2 - HKEX's Chairman expressed confidence in the future, believing the exchange can seize growth opportunities and enhance its role as a vital bridge between the country and the world [1] - The CEO of HKEX announced plans for the second half of the year to enhance market competitiveness, including shortening the settlement cycle for the cash market and expanding the paperless listing mechanism [2] - New measures will also include optimizing IPO pricing regulations and introducing a phased reduction in minimum price fluctuations for securities trading [2]

【导读】香港交易所：IPO重回全球榜首！外资参与度显著提升！ 中国基金报记者 郭玟君 8月20日中午，香港交易所披露上半年业绩。香港交易所集团行政总裁陈翊庭表示，现货市场、衍生产品市场及沪深港通的成交量均创半年新高，新股市 场融资额重回全球交易所榜首，一级市场及二级市场外资参与度显著提升。 业绩披露后，香港交易所股价在下午交易时段由跌转涨，最高涨幅达1.98%，全天收于441.20港元/股，涨1.71%。 上半年收入创历史新高 香港交易所半年报显示，2025年上半年收入及其他收益创历来半年度新高，达140.76亿元，较2024年上半年增长33%。 香港交易所主要业务收入较2024年上半年增长34%，现货及股票期权市场成交量创历来半年度新高，存管费用增加以及保证金规模增加令投资收益净额上 升。 | | 載至 2025 年 | 截至 2024 年 | | | --- | --- | --- | --- | | | 6 月 30 日止 | 6月30日正 | | | | 六個月 | 六個月 | | | | 百萬元 | 白萬元 | 變唱 | | 收入及其他收益 | | | | | 主要業務收入 | 12,954 | 9 ...

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first half of 2025, driven by a significant market recovery and a strong IPO pipeline [1][2]. Group 1: Financial Performance - HKEX's revenue and other income for H1 2025 reached HKD 14.076 billion, a 33% increase compared to H1 2024 [1] - Shareholder profit for H1 2025 was HKD 8.519 billion, up 39% from H1 2024 [1] - Daily trading volume in the cash market hit a half-year record, doubling compared to H1 2024 [1] Group 2: IPO Activity - HKEX completed over 50 IPOs in the first half of 2025, raising nearly USD 17 billion, maintaining a leading position globally [2] - There are currently around 230 companies in the IPO pipeline, indicating strong demand for listings [2] - The relationship between HKEX and mainland exchanges is characterized as complementary, with mutual benefits expected from the resurgence of IPOs in mainland China [2] Group 3: Investment Trends - Global investors are increasingly looking to diversify into Asian markets, particularly China, which is seen as a favorable investment opportunity [4] - High foreign participation in IPOs, especially among cornerstone investors, reflects strong interest from international capital [4] Group 4: Technology and Confidentiality - HKEX has seen 50 new applications from companies under the technology special listing regime, encouraging innovation [5] - The introduction of confidential submission for certain companies allows sensitive information to be protected during the approval process, ensuring transparency at the time of public offering [5] Group 5: Trading Hours and Market Accessibility - There is ongoing discussion about the potential for 24-hour trading to enhance market accessibility, though careful analysis is required to manage risks and operational pressures [6] - HKEX has been optimizing trading calendars and processes to improve service to the market, indicating a commitment to enhancing trading efficiency [6]

Group 1 - The Hong Kong Stock Exchange (HKEX) is actively discussing the shortening of the settlement cycle for the cash market, with plans to support a T+1 settlement cycle by the end of this year [1] - HKEX CEO Charles Li noted the ongoing discussions regarding extending trading hours, referencing Nasdaq's plan to implement a 24-hour trading mechanism five days a week by the second half of 2026 [1] - The company will adopt a cautious and gradual approach, taking into account international experiences while considering local market conditions, with system upgrades and risk management frameworks being prerequisites for this process [1] Group 2 - Since the launch of the "Tech Company" special line, HKEX has received applications for IPOs from 50 companies under Chapter 18A and Chapter 18C listing rules [1]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has reported record-high performance in the first half of 2025, driven by a significant market recovery and a robust IPO pipeline, showcasing the effectiveness of its diversification strategy and strategic focus [2][3]. Group 1: IPO Trends - HKEX completed over 50 IPOs in the first half of 2025, raising nearly $17 billion, maintaining its leading position globally in IPO rankings [3]. - The IPO pipeline remains strong with approximately 230 companies currently in line for listing, indicating a healthy market environment [3]. Group 2: Dollar Asset Return - Global investors are increasingly looking to diversify their investments into Asian markets, particularly China, which is seen as a favorable opportunity for HKEX [5]. - The participation of foreign capital in the Hong Kong stock market is high, especially among cornerstone investors in IPOs, which includes long-term investment funds from various regions [5]. Group 3: Technology Company Initiatives - HKEX has seen the addition of 50 new applications from companies under the 18A and 18C categories since launching its technology-focused listing channel, reflecting a positive response [6]. - The introduction of confidential submission for certain companies allows for sensitive information to be protected during the approval process, ensuring transparency at the time of public offering [6]. Group 4: 24-Hour Trading Discussion - There is ongoing discussion about the feasibility of implementing 24-hour trading at HKEX, which could enhance market accessibility for investors [7]. - The exchange is considering the implications of extended trading hours on operational processes and risk management, emphasizing the need for thorough analysis before any changes are made [7].

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) emphasizes its commitment to strategic investments to maintain global competitiveness, particularly in enhancing data platforms and upgrading trading and settlement systems [1] Group 1: Strategic Investments - HKEX's CEO, Charles Li, stated that the company will not hesitate to increase capital expenditures to optimize data platforms and upgrade trading and settlement systems [1] Group 2: Trading Hours and Market Adaptation - In response to discussions about extending trading hours, HKEX is considering a cautious and gradual approach, taking into account international peers' experiences and local market conditions [1] - The implementation of extended trading hours will depend on the upgrade of trading systems, improvement of risk management frameworks, and maturity of regulatory structures [1] Group 3: Settlement Cycle Discussions - HKEX is actively engaging with market participants to explore the possibility of shortening the settlement cycle for the cash market [1] - The technical systems of HKEX are expected to support a T+1 settlement cycle by the end of this year, but the actual implementation will require feedback from various market participants [1]

Investment Rating - The report maintains a "Buy" rating for the company [2][17] Core Views - The company reported strong performance in 1H25, with total revenue reaching HKD 14.08 billion, a year-on-year increase of 33%. Main revenue was HKD 12.95 billion, up 34% year-on-year, and net profit was HKD 8.52 billion, up 39% year-on-year [5][7] - The report highlights that the company achieved record high revenue and net profit for the same period, driven by strong trading volumes and a resurgence in IPO activities, positioning it back at the top of the global IPO rankings [5][7] - The report projects an increase in net profit for 2025-2027, with estimates of HKD 16.93 billion, HKD 17.94 billion, and HKD 18.78 billion respectively, reflecting year-on-year growth rates of 30%, 6%, and 5% [6][7] Financial Data and Earnings Forecast - The company’s revenue is forecasted to grow from HKD 20.52 billion in 2023 to HKD 29.86 billion in 2027, with a compound annual growth rate (CAGR) of approximately 8% [6][8] - The net profit is expected to increase from HKD 11.86 billion in 2023 to HKD 18.78 billion in 2027, with a CAGR of around 9% [6][8] - The report indicates a significant improvement in EBITDA margin, projected to reach 79% in 1H25, up 6 percentage points year-on-year [5][7] Revenue Breakdown - The revenue breakdown for 1H25 shows that trading fees contributed HKD 4.91 billion (38%), settlement and clearing fees contributed HKD 3.16 billion (24%), and investment income contributed HKD 2.88 billion (22%) [7] - The report notes that all business segments, except for market data fees, achieved double-digit year-on-year growth, with trading fees and settlement fees increasing by over 40% [7] Market Performance - The average daily trading (ADT) for cash stocks in 2Q25 was HKD 220.3 billion, a year-on-year increase of 97%, while the average daily volume (ADV) for derivatives decreased [7] - The report emphasizes the strong performance of the IPO market, with 44 new listings in 1H25 raising HKD 109.4 billion, an eightfold increase compared to the same period last year [7]