Summary of Hong Kong Stock Exchange Conference Call Company Overview - The Hong Kong Stock Exchange (HKEX) generates revenue primarily from trading fees, settlement fees, listing fees, custody fees, and investment income, with trading and settlement fees accounting for 40%-65% of total revenue, highly correlated with market turnover [2][4][6]. Core Insights and Arguments - **Revenue Growth**: Since its listing in 2000, HKEX's revenue has increased from HKD 2.312 billion to HKD 22.4 billion, an 8.7x growth, while net profit rose from HKD 879 million to HKD 13.1 billion, a 13.8x increase. The compound annual growth rate (CAGR) for revenue is approximately 10%, and for net profit, about 12% [3]. - **Profitability Metrics**: HKEX maintains a return on equity (ROE) typically between 20%-25%, with a median around 25%. The net profit margin is approximately 60%, placing it among the top exchanges globally [3]. - **Investment Income Growth**: Investment income has significantly increased from 7% to over 20% of total revenue, attributed to the high interest rate environment set by the Federal Reserve [2][4]. - **Market Activity Expectations**: Anticipation of increased trading activity in the Hong Kong market is a key driver for HKEX's investment outlook, supported by regulatory encouragement for mainland companies to list in Hong Kong [2][8]. Business Segmentation - **Revenue Sources**: The main revenue sources include trading fees, settlement fees, listing fees, custody services, and investment income. Trading and settlement fees are the largest contributors, with their combined share of total revenue ranging from 40% to 65% [4][5]. - **Business Segments**: HKEX's operations are divided into five main segments: cash market, derivatives trading, commodity futures, company projects, and data connectivity, with cash and derivatives markets accounting for about 70% of total revenue [2][4]. Competitive Advantages - **Regional Monopoly**: HKEX is the only exchange group in Hong Kong, providing it with significant pricing power [6]. - **Integrated Services**: The exchange offers a full range of services from trading to clearing, enhancing operational efficiency and reducing costs [6]. - **Diverse Product Offering**: HKEX has a rich product portfolio, including equities, futures, derivatives, and various innovative financial instruments [6][7]. Market Trends and Future Outlook - **A-Share Listings**: As of June 2024, nine A-share companies have listed on HKEX, with nearly 100 more expressing intent to do so, indicating a strong trend expected to continue over the next three years [9]. - **Southbound Capital Inflow**: The proportion of southbound capital has increased from 10%-20% to 20%-25%, significantly impacting turnover rates and overall market liquidity [11]. - **Global Fund Flows**: There is a notable correlation between global fund inflows to HKEX and the Federal Reserve's interest rate policies, with expectations of a favorable macro environment for capital inflows [12]. Valuation and Investment Potential - **Valuation Metrics**: HKEX's historical valuation has ranged between 30-35x PE, with potential for recovery as profitability improves. The current PE is around 35x, with expectations to reach approximately 40x by the end of 2025 [16]. - **Future Profit Projections**: Net profit for 2025 is projected to grow by about 30%, with ROE expected to reach around 30% [15][16]. - **IPO Activity**: HKEX is anticipated to regain its position as a leading global IPO venue, with expected issuance volumes of HKD 150 billion to 200 billion in 2025 [14][15]. Additional Insights - **Data Business Growth Potential**: HKEX's information and data business currently accounts for less than 10% of total revenue, indicating significant growth potential compared to other major exchanges [15]. - **Market Positioning**: Despite a lower total market capitalization of approximately USD 5.5 trillion, HKEX has room for growth in daily trading volumes, which typically range from HKD 100 billion to 200 billion [13].

智通财经6月26日电，香港交易所信息显示，摩根大通（JPMorgan）在哔哩哔哩-W的持股比例于06月23 日从12.80%降至12.58%。 ...

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) has shown strong recent performance, with a current price of HKD 416, indicating a bullish technical outlook and potential for further gains [1][3]. Technical Analysis - The moving averages MA10 (407.16), MA30 (399.17), and MA60 (370.67) are all in a bullish arrangement, suggesting an upward trend in the short to medium term [1]. - The RSI indicator is at 64, indicating that the stock has not yet entered the overbought territory, suggesting further upside potential [1]. - The overall technical signal is a "buy," with a strength of 13, indicating continued market inflow [1]. - Key support levels are identified at HKD 402 and HKD 391, while resistance levels are at HKD 424 and HKD 436, with potential for higher targets if these levels are breached [1]. Market Activity - On June 24, HKEX's stock price increased by 4%, closing around HKD 414, reflecting a vibrant IPO market with many new listings in Hong Kong [3]. - There has been notable activity in related financial instruments, with good performance in call warrants and some profit-taking observed among investors [3]. - The volatility of HKEX is highlighted by a 5-day price fluctuation of 8.1%, indicating opportunities for short-term traders [1]. Product Analysis - Various call warrants related to HKEX are available, with notable products including a call warrant with a strike price of HKD 450.2, which has a leverage of approximately 11 times [4]. - The performance of structured products has been strong, with significant gains observed in certain warrants following the stock's price increase [4]. - The analysis of implied volatility shows that some products are priced more competitively compared to market averages, providing potential advantages for investors [4][7].

Core Insights - Over a quarter of Chinese companies listed in Hong Kong last year have international business operations [7] - Hong Kong Stock Exchange (HKEX) is actively pursuing an international strategy to attract more companies, particularly from Asia and the Middle East [2][4] - HKEX has completed 31 IPOs this year, raising over 884 million HKD as of June 20 [2] Group 1: Market Dynamics - HKEX has maintained strong liquidity with an average daily trading volume of approximately 240 billion HKD [4] - The exchange is currently the world's leading IPO venue, having raised over 12 billion USD through IPOs this year [4] - Key sectors for new listings include consumer retail, technology, media, telecommunications (TMT), healthcare, and renewable energy [4] Group 2: International Listings - Companies considering listing in Hong Kong are attracted by its status as a historical international financial center, providing access to a broad investor base [4][5] - The dual listing option allows companies to extend trading hours, which is a significant advantage for those not operating in the Asian time zone [2] - Since 2019, over 80 Chinese companies have delisted from U.S. exchanges, with many opting for dual listings in Hong Kong [5] Group 3: Strategic Initiatives - HKEX is enhancing its international appeal by recognizing exchanges in Thailand, Abu Dhabi, and Dubai for dual listings [6][7] - The exchange plans to open its first representative office in Riyadh later this year to further its international business expansion [7] - The valuation gap between mainland China and Hong Kong markets is influenced by different tax regimes, but HKEX focuses on the global investor access it provides [7]

Market Overview - The overall market is performing well, with the Hang Seng Index rising to nearly 24,200 points, showing increased trading activity with a total turnover of 230 billion [1][3] - Investor sentiment appears optimistic, with expectations of testing the 24,500 level in the short term [1][3] Investment Products - There is a notable flow of funds in the warrants and structured products market, with some investors taking profits from bullish positions while others are starting to deploy bearish positions near the 24,400-24,500 range [3] - Specific products such as put warrants are gaining attention due to their lack of recall risk and potential for leverage, with examples showing leverage of around 10 times [3][4] Stock Performance - Hong Kong Exchanges and Clearing (HKEX) shares rose by 4%, closing around 414 HKD, with a strong performance in related warrants [7][8] - Xiaomi's stock increased by approximately 3.74%, closing at 56.9 HKD, driven by anticipation of an upcoming product launch [12][16] - China Hongqiao's stock price has risen from 9 HKD to around 17 HKD, with a 35% increase in mid-term profits reported [16][17] - Meituan's stock has been underperforming, with a recent decline of 1%, but there is a flow of funds into bullish warrants as investors see potential at the 130 HKD level [19] - China Life's stock has risen from 13 HKD to around 19 HKD, with some investors starting to deploy bearish positions [23] - BYD's stock is fluctuating between 120-130 HKD, with recent inflows into bullish positions as it shows signs of potential rebound [27][28] Technical Analysis - Support and resistance levels for the Hang Seng Index are identified at 23,634 and 24,474 points respectively [4] - For individual stocks, technical signals indicate a "buy" for China Hongqiao and China Life, while Meituan shows a "sell" signal [19][23] - The leverage ratios for various warrants are highlighted, with some products offering leverage of 4 to 11 times, depending on the underlying stock and expiration dates [9][12][27]

香港交易所信息显示， 贝莱德在 快手-W的持股比例于06月19日从4.78%升至5.12%。 ...

Group 1 - The Hong Kong IPO market has shown remarkable performance in the first half of the year, with 31 listings and a total financing amount of 884 billion HKD, surpassing the total financing of the previous year, making Hong Kong the global leader in IPO financing [1] - Institutional innovations have activated the financing momentum of the Hong Kong Stock Exchange, with optimized listing rules and improved approval efficiency being key drivers for attracting companies to list [2] - Leading companies in new economy and technology sectors have significantly contributed to Hong Kong's position as the top IPO financing venue globally, with major firms like CATL and Jiangsu Hengrui Medicine leading the way [2][3] Group 2 - The trend of A-share listed companies, especially in new economy and biomedicine sectors, seeking international development through Hong Kong listings is increasing, as the Hong Kong Stock Exchange responds to the demand for high-quality economic development [3] - The liquidity of the Hong Kong market has improved significantly, with a notable reduction in the price gap between H-shares and A-shares, enhancing the attractiveness of IPOs [4] - The continuous release of institutional dividends, the accelerated gathering of new economy industries, and the increasing convenience of cross-border capital flows are expected to strengthen Hong Kong's competitive advantage in attracting global new economy enterprises [4]

Group 1 - The global capital flow is shifting, with a focus on regions beyond Asia, Europe, and the US, presenting market opportunities despite a fragmented environment [1] - Hong Kong Stock Exchange (HKEX) can play a crucial role in facilitating cross-border investments between Chinese and overseas investors [1] - Maintaining liquidity in the market relies on integrity and trust, supported by high regulatory standards and enhanced corporate governance [1] Group 2 - China is experiencing significant investment opportunities, highlighted by the largest IPO globally this year, aiming to raise $5.3 billion, attracting investors from Europe, the Middle East, and the US [2] - The trend of capital flow is shifting towards innovation, particularly in biotechnology, green transformation, and innovative technology sectors [2] - HKEX is actively connecting with global markets to attract companies focused on AI and biotechnology, which are seen as future growth areas [2]

Group 1 - Morgan Stanley increased its stake in AIA Group from 7.99% to 8.04% as of June 18 [1] - The average share price for this transaction was HKD 68.2840 [1]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) celebrated its 25th anniversary, evolving from a local exchange to a leading global international exchange [1] - In 2025, HKEX's IPO financing amount is expected to reclaim the global top position after six years, with 31 IPO projects raising a total of 884 billion HKD this year, surpassing last year's total [1][2] - The daily trading volume in the securities market has increased from approximately 130 billion HKD in 2000 to over 2400 billion HKD, representing a more than 17-fold increase [1] - The market capitalization has grown from 86 billion HKD in 2000 to 4960 billion HKD, an increase of over 56 times [1] - The number of listed companies on the Hong Kong stock market has surged from 790 to over 2600 [1] IPO Trends - From 2009 to 2021, HKEX ranked first globally in IPO fundraising seven times, but faced a decline starting in 2022, only returning to the top five in 2023 due to large companies like Midea listing [2] - Between 2014 and 2024, HKEX's cumulative IPO fundraising reached 303 billion USD, surpassing NASDAQ and NYSE, with mainland companies becoming a significant pillar of this market [2] - As of June 8, 2023, there are 165 mainland companies queued to list on HKEX, a significant increase from nearly 80 in mid-January [2] Market Reforms and Innovations - HKEX has implemented various reforms over the past 25 years, adapting to market needs and attracting a diverse range of investors and products [3] - The exchange has shifted its listing rules to accommodate unprofitable companies, particularly in the biotech and internet sectors, which are now seen as valuable listings [3] - HKEX aims to position itself as a leading fundraising hub for new economy and biotech companies, as well as a global offshore RMB business center [3] Cross-Border Financial Cooperation - The launch of the Cross-Border Payment System on June 22 aims to enhance financial cooperation between mainland China and Hong Kong, facilitating cross-border remittances [5] - Since the introduction of various mutual market access programs, the total balance of foreign investment in onshore stocks has increased over five times, with mainland companies now accounting for 81% of the total market capitalization of HKEX [5] - The mutual access mechanisms have expanded from stocks to include bonds, ETFs, and interest rate swaps, with further developments planned [6] Future Outlook - HKEX is focused on enhancing its market resilience and vibrancy, with ongoing improvements to trading systems and infrastructure [6] - The recent policy changes allow companies listed on HKEX in the Guangdong-Hong Kong-Macao Greater Bay Area to also list on the Shenzhen Stock Exchange, potentially increasing the number of "H+A" listed companies [6]