Group 1 - The total market capitalization of the Hong Kong securities market reached HKD 40.9 trillion by the end of May 2025, a 24% increase from HKD 32.9 trillion in the same period last year [1] - The average daily trading volume in May was HKD 210.3 billion, up 50% from HKD 139.8 billion year-on-year [1] - In the first five months of 2025, the average daily trading volume on the Hong Kong Stock Exchange was HKD 242.3 billion, a 120% increase from HKD 110.2 billion in the same period last year [1] Group 2 - There has been a significant increase in Chinese companies listing in Hong Kong, with notable examples including new consumer enterprises like Mixue Group, core manufacturing companies like CATL, and innovative pharmaceutical companies like Hansoh Pharmaceutical [1] - The number of new listings on the Hong Kong Stock Exchange from January to May was 29, a 38% increase compared to the same period last year [1] - The total fundraising amount for initial public offerings (IPOs) in the first five months was HKD 77.7 billion, a 709% increase year-on-year, while the total fundraising amount reached HKD 235.1 billion, up 383% from the previous year [1] Group 3 - The Hong Kong Stock Exchange is positioned with valuation safety margins, industrial upgrade momentum, and liquidity support, highlighting its mid-to-long-term investment value [2] - The Hong Kong Stock Exchange's strategic initiatives, including enhancing market connectivity and exploring innovative business opportunities, are expected to solidify its hub status and expand revenue and profit growth potential [3] - The recovery of the IPO market and the trend of Chinese concept stocks returning to Hong Kong are anticipated to provide more resources and trading opportunities for the Hong Kong Stock Exchange [3]

Group 1: Hong Kong Stock Market Performance - As of May 2025, the total market capitalization of the Hong Kong securities market reached HKD 40.9 trillion, representing a 5% increase month-on-month and a 24% increase year-on-year [1] - The average daily trading amount in May was HKD 210.3 billion, up 50% compared to the same period last year [1] - In the first five months of the year, there were 29 new listings on the Hong Kong Stock Exchange, a 38% increase year-on-year, with IPO fundraising amounting to HKD 77.7 billion, a staggering 709% increase from the previous year [1] Group 2: Company Developments - Sanhua Intelligent Controls successfully passed the hearing for listing on the Hong Kong Stock Exchange, marking a significant step in its internationalization strategy. The company's projected revenues for 2022, 2023, and 2024 are RMB 21.348 billion, RMB 24.558 billion, and RMB 27.947 billion, respectively, with net profits of RMB 2.608 billion, RMB 2.934 billion, and RMB 3.112 billion [2] - Jiangnan Buyi announced plans to acquire land use rights in Hangzhou for a modern park integrating digital R&D and intelligent warehousing, indicating a proactive approach to business expansion despite the uncertainty of the bidding outcome [3] - Jinjiang Hotels announced its intention to issue shares and list in Hong Kong to enhance its global strategy and improve governance. The funds raised will be used to expand overseas operations, repay bank loans, and supplement working capital, despite a decline in revenue and net profit in 2024 [4] Group 3: Market Indices - The Hang Seng Index closed at 23,906.97, with a daily increase of 1.07% [5] - The Hang Seng Tech Index reached 5,319.96, reflecting a 1.93% increase [5] - The National Enterprises Index stood at 8,684.73, up by 1.26% [5]

Group 1 - Kyrgyzstan successfully issued a 5-year USD benchmark international bond in Hong Kong, with an initial target of $500 million but ultimately raising $700 million due to strong market demand, with peak orders exceeding $2.1 billion from over 130 investors [1] - The bond has a coupon rate of 7.75% and is the first sovereign bond from Central Asia listed on the Hong Kong Stock Exchange, aimed at supporting the national budget, particularly in hydropower and infrastructure projects [1][2] - The issuance reflects high international market confidence in Kyrgyzstan's economic outlook and sovereign credit, as indicated by the oversubscription [2] Group 2 - Tianfeng International acted as the underwriter, leveraging its international investor resources and local service advantages to efficiently complete the issuance process [1][3] - The bond listing on the Hong Kong Stock Exchange is expected to enhance Kyrgyzstan's visibility among Chinese and Asian investors, diversifying its financing channels and optimizing its debt structure [2] - The issuance aligns with the broader goals of the Belt and Road Initiative, promoting financial connectivity and sustainable development in the region [3]

Group 1 - Morgan Stanley increased its stake in Meituan-W from 4.60% to 5.32% as of May 30 [1] - The average share price for this transaction was 137.7158 HKD [1]

Group 1 - The Hong Kong stock market is experiencing positive developments, including the implementation of the "Stablecoin Ordinance" to enhance the digital asset regulatory framework [1] - There has been an increase in A-share companies listing in Hong Kong, with 5 companies listed this year and around 40 more in the pipeline, covering sectors such as technology, consumer goods, new energy, and pharmaceuticals [1] - The Hong Kong Stock Exchange (HKEX) is reforming its listing system to facilitate these listings, which is expected to improve market liquidity and trading demand [1] Group 2 - CITIC Securities indicates that the HKEX's core business will benefit from improved market liquidity and the expansion of the derivatives market, which opens up revenue growth opportunities [1] - The People's Bank of China’s recent interest rate cuts are expected to enhance market liquidity, while cross-border wealth management initiatives are bringing in more funds [1] - The valuation of HKEX remains attractive, with expectations that the second-quarter performance will drive valuations back to reasonable levels [1] Group 3 - The Hong Kong Stock Connect 50 ETF (code: 159712) tracks the Hong Kong Stock Connect 50 Index (code: 930931), which includes 50 highly liquid stocks listed in Hong Kong, primarily focusing on large-cap blue-chip companies [1]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) shows a stable upward trend, with the stock price reaching 401.2 HKD, reflecting a 1.42% increase, and technical indicators suggest a potential for further gains despite being in the overbought zone [1][9]. Technical Analysis - The stock price has broken through all major moving averages, with the 10-day moving average at 393.4 HKD and the 30-day moving average at 372.1 HKD indicating a bullish alignment [1]. - The MACD indicator remains in a golden cross state, suggesting a strengthening mid-term trend [1]. - The RSI has reached 70, indicating an overbought condition, and the upper Bollinger Band is at 406 HKD, which coincides with current resistance levels, suggesting a possible short-term technical adjustment [1]. - Key support levels are identified at 384 HKD and a stronger support at 360 HKD, while resistance is seen at 406 HKD, with a potential challenge at 418 HKD if broken [1]. Derivative Products Performance - Recent trading data from June 2 to June 4 shows that while HKEX's stock rose by 0.66%, related derivative products exhibited varying degrees of leverage effects, particularly bull certificates [3]. - HSBC bull certificate 53712 increased by 11% over two days, while Societe Generale bull certificate 54739 rose by 10%, highlighting the advantages of bull certificates in a moderate upward market [3][4]. - Call options such as Barclays call option 27807 and HSBC call option 29547 recorded an 8% increase, demonstrating significant leverage effects [4]. Investment Strategies - For bullish investors, HSBC call option 29547 offers a leverage of 8.9 times with a strike price of 450.2 HKD, while Barclays call option 27807 provides a leverage of 9 times with a strike price of 450 HKD, both suitable for medium-term holding [6]. - For bearish investors, HSBC put option 16951 offers a leverage of 9.4 times with a strike price of 333.68 HKD, and UBS put option 16913 provides a leverage of 9 times with the same strike price, both having the lowest premiums and implied volatilities [7]. - UBS bear certificate 52551 has a leverage of 16.2 times with a recovery price of 420 HKD, while JPMorgan bear certificate 53686 offers a leverage of 15.9 times, suitable for bearish market conditions [7].

Core Viewpoint - The article discusses the transformation of the Hong Kong stock market, highlighting its resurgence as a capital haven despite previous challenges, driven by significant reforms and an influx of southbound capital from mainland investors [3][6][12]. Group 1: Market Performance and Trends - Xiaomi completed a HKD 4.25 billion placement, marking the third-largest flash placement in Hong Kong's history, following Meituan and BYD [3]. - In 2023, Hong Kong's IPO financing reached HKD 653.25 billion, a year-on-year increase of 691.33%, while total placements surged to HKD 1,242.68 billion, up 853.47% [4]. - The first quarter of 2023 saw a new high of 27% in equity holdings of Hong Kong stocks by actively managed public funds [4]. Group 2: Challenges Faced by the Market - Prior to 2023, Hong Kong stocks faced a four-year decline, with IPO fundraising dropping to HKD 46.3 billion in 2022, an 86% decrease from 2021, making it the lowest in 20 years [3][4]. - The market suffered from liquidity issues, with large-cap stocks contributing 90% of liquidity, while small-cap stocks struggled [9][10]. - The market's challenges were exacerbated by external factors such as aggressive interest rate hikes by the Federal Reserve and geopolitical tensions [8][10]. Group 3: Reforms and Strategic Changes - The new leadership at the Hong Kong Stock Exchange, including CEO Chen Yiting and Chairman Tang Jiacheng, aims to address liquidity issues and attract competitive companies [12][13]. - Reforms include lowering the listing thresholds for companies, with market capitalization requirements for commercialized companies reduced from HKD 60 billion to HKD 40 billion [13]. - The introduction of the FINI platform has improved the efficiency of new stock subscriptions, significantly reducing the time funds are frozen during the process [14][16]. Group 4: Capital Inflows and Market Dynamics - The influx of southbound capital has been a key driver of market resilience, with significant investments in technology and new consumer sectors [18][20]. - Public funds have increased their holdings in major stocks like Tencent and Alibaba, with a notable rise in technology-related ETFs [20][22]. - Insurance funds have actively increased their stakes in high-dividend stocks, contributing to the overall liquidity of the market [23].

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges (0388.HK) with a 12-month target price of HK$455.00, indicating an upside potential of 13.6% from the current price of HK$400.40 [1][2][10]. Core Insights - Despite a year-to-date share price increase of approximately 35%, the stock is considered undervalued relative to strong market activity levels. The listing pipeline is growing, with over 150 companies having submitted applications to list in Hong Kong [1][22][29]. - The introduction of new products, particularly weekly expiries for index options and stock options, is expected to drive growth in average daily volume (ADV) for options. Historical data from the US and India suggests that index options ADV could outperform cash market volumes by 40 to 50 percentage points [2][44][45]. - The report projects a 15% potential upside to cash equity average daily trading (ADT) from A-share companies listing in Hong Kong over the medium term, with adjustments made to FY26-27E ADT estimates [1][23][41]. Summary by Sections Financial Projections - Revenue estimates for FY25E, FY26E, and FY27E are projected at HK$25,721.8 million, HK$26,772.8 million, and HK$28,006.3 million respectively, reflecting an increase from previous estimates [4][10]. - EPS estimates have been raised by 2%, 9%, and 10% for FY25, FY26, and FY27 respectively, driven by higher volume expectations [2][10]. Market Activity - The report notes that HKEX has regained its position among the top five global IPO venues in Q1 2025, with around US$10 billion raised from IPOs year-to-date, nearly double the amounts raised in 2023 and 2024 [22][24]. - A-share companies listing H-shares for global expansion have accounted for over half of the IPO funds raised since 2024, with approximately 630 A-share companies identified as eligible to list H-shares [23][32]. Options Market - The introduction of zero-day-to-expiry (0DTE) options is anticipated to add approximately 10% to overall options ADV, based on successful models in the US and India [44][48]. - Currently, index options represent about 20% of total options ADV at HKEX, and the report suggests that this could lead to a significant increase in overall trading activity [2][44][60].

Core Viewpoint - The shareholding percentage of Bank of America in Bilibili-W has decreased from 8.02% to 7.72% as of May 28 [1] Company Summary - Bank of America's stake in Bilibili-W has seen a reduction, indicating a potential shift in investment strategy or confidence in the company [1]

Group 1 - Goldman Sachs reports that the Hong Kong Stock Exchange (HKEX) is still undervalued despite a 35% increase in share price this year due to earnings upgrades and valuation expansion [1] - The firm estimates a potential 15% increase in average daily trading volume for fiscal year 2025 if more A-share companies list in Hong Kong, with a 50% probability of occurrence [1] - Goldman Sachs has raised its average daily trading volume forecasts for fiscal years 2026 and 2027 by 7% and 6% respectively, expecting them to reach HKD 240 billion and HKD 258 billion [1] Group 2 - The firm has increased its earnings per share estimates for HKEX for fiscal years 2025, 2026, and 2027 by 2%, 9%, and 10% respectively [1] - Goldman Sachs maintains a "buy" rating on HKEX and has raised the target price from HKD 398 to HKD 455 [1]