Core Viewpoint - Hong Kong Exchanges and Clearing (HKEX) is expected to report strong financial results for Q3 2025, driven by increased trading activity and a robust IPO market, despite a decline in investment income due to lower HIBOR rates and currency fluctuations [1][2][3] Group 1: Financial Performance - Total revenue for Q3 2025 is projected to be HKD 7.583 billion, representing a year-on-year increase of 41% and a quarter-on-quarter increase of 5% [1] - Net profit attributable to shareholders is expected to reach HKD 4.774 billion, reflecting a year-on-year growth of 52% and a quarter-on-quarter growth of 7% [1] - Daily average trading volume (ADT) for Hong Kong stocks is anticipated to be HKD 286.4 billion, marking a year-on-year increase of 141% and a quarter-on-quarter increase of 20% [1] Group 2: Trading Activity - Trading-related revenue is expected to rise to HKD 5.137 billion, a quarter-on-quarter increase of 31% [1] - Southbound trading volume reached HKD 76.2 billion, a quarter-on-quarter increase of 36%, accounting for 26.6% of total ADT [1] - Northbound trading activity saw a significant increase, with single-sided ADT reaching RMB 134.3 billion, up 77% quarter-on-quarter [1] Group 3: IPO Market - IPO-related revenue for Q3 2025 is estimated at HKD 440 million, a quarter-on-quarter increase of 7.5% [2] - A total of 25 IPOs were recorded in Q3 2025, with a fundraising amount of HKD 73.5 billion, down from HKD 88 billion in Q2 2025 [2] - The number of newly listed structured products increased to 10,700, up from 9,494 in the previous quarter [2] Group 4: Investment Income - Net investment income is projected to decline to HKD 917 million, a quarter-on-quarter decrease of 41% [2] - The decline is attributed to reduced margins from margin investments due to HIBOR fluctuations and a decrease in the company's own investment returns [2] Group 5: Profit Forecast and Valuation - Net profit forecasts for 2025, 2026, and 2027 have been adjusted to HKD 17.7 billion, HKD 18.3 billion, and HKD 18.7 billion, respectively, with increases of 5.2%, 11.2%, and 14.1% [3] - The target price based on DCF remains at HKD 542, with a cost of equity of 5% [3]

Group 1: Core Insights - The integration of technological innovation and financial services is becoming a key driver of economic growth amid profound changes in the global economic landscape [1] - The 2025 Financial Street Forum focused on the theme of "Innovation, Cooperation, and Openness" in the context of global economic restructuring [1] Group 2: Institutional Support - A robust capital market ecosystem tailored to the needs of innovative enterprises requires top-level design and institutional guarantees [2] - The Ministry of Industry and Information Technology emphasizes enhancing the innovation capabilities and specialization of small and medium-sized enterprises (SMEs) through a comprehensive policy framework [2] - The China Securities Regulatory Commission (CSRC) aims to strengthen the multi-tiered capital market's support for technological innovation by focusing on market dynamics, optimizing regulatory arrangements, and deepening institutional innovation [2] Group 3: Judicial and Market Mechanisms - The Beijing Financial Court is working on improving judicial rules related to investment and financing to empower technological innovation [3] - The Beijing Stock Exchange is committed to supporting innovative SMEs by creating a market ecosystem that aligns with their characteristics [3] Group 4: Macro Economic Transition - The shift from a "land-finance-financial" cycle to an "industry-technology-financial" cycle is highlighted as a significant transformation in China's economic structure [4] - Recommendations include addressing financial support bottlenecks for technological innovation and accelerating financial internationalization [4] Group 5: Global Experience and Best Practices - The increasing openness of China's capital market is leading to the adoption of international experiences and innovative tools to enhance support for technology enterprises [5] - The Singapore Exchange and London Stock Exchange are cited for their unique advantages in supporting innovative and growth-oriented companies [5][6] Group 6: Market Performance and Initiatives - As of September 30, the IPO fundraising amount reached $23.9 billion, representing a 230% increase compared to the same period last year, making it the top global exchange for IPOs [7] - The Hong Kong Stock Exchange reported strong performance across all nine industry sectors, with significant growth in the healthcare and biotechnology sectors [6][7]

Core Viewpoint - The 10th China Pharmaceutical Innovation and Investment Conference highlighted the significant role of capital markets in supporting the globalization of Chinese innovative pharmaceutical companies, with Hong Kong Stock Exchange (HKEX) emerging as a leading platform for biotech financing in 2023 [1] Group 1: Market Performance - HKEX has positioned itself as a vital international financing platform for Chinese biotech companies, with the healthcare sector's IPO financing in Hong Kong ranking first globally this year [1] - As of now, Hong Kong has completed 12 biotech IPOs, raising a total of $1.3 billion, which is the highest globally [1] - The total amount raised through refinancing in the biotech sector has reached $4.1 billion this year, indicating a recovery in market confidence [1] Group 2: Regulatory Environment - The recent strong performance of Hong Kong's healthcare financing market is attributed to three interlinked factors: continuous optimization of regulatory systems, the listing of high-quality innovative companies, and active participation from investors [1] - The market is expected to see a significant rebound by 2025, reaffirming Hong Kong as the preferred listing destination for biotech companies [1]

Core Insights - The 10th China Pharmaceutical Innovation and Investment Conference was successfully held in Nanjing from October 26 to 27, highlighting discussions on pharmaceutical R&D achievements and investment trends in the industry [1] Group 1: Market Dynamics - The Hong Kong Stock Exchange (HKEX) plays a crucial role in supporting the globalization of Chinese innovative pharmaceutical companies through its efficient and diverse international financing platform [1] - The healthcare sector in Hong Kong has seen significant IPO activity this year, ranking first globally in terms of fundraising in the new stock market [1] - As of now, Hong Kong has completed 12 biotech IPOs, raising a total of $1.3 billion, which positions it as the leading market for biotech fundraising globally [1] Group 2: Financing Trends - The biotech sector has experienced active refinancing transactions, with a total refinancing amount reaching $4.1 billion year-to-date, indicating a gradual recovery in market confidence [2] - The positive performance in the healthcare financing market is attributed to the continuous optimization of regulatory frameworks, the listing of high-quality innovative companies, and active investor participation [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 542 HKD [7]. Core Insights - The company is expected to report total revenue of 7.583 billion HKD for 3Q25, representing a year-on-year increase of 41% and a quarter-on-quarter increase of 5%. The net profit attributable to shareholders is projected to be 4.774 billion HKD, reflecting a year-on-year increase of 52% and a quarter-on-quarter increase of 7% [1][5]. - The significant increase in trading activity is the main driver of revenue growth, with the average daily turnover (ADT) for Hong Kong stocks reaching 286.4 billion HKD, a year-on-year increase of 141% and a quarter-on-quarter increase of 20% [1][2]. - The report anticipates a decrease in net investment income to 917 million HKD, a decline of 41% quarter-on-quarter, primarily due to a narrowing margin from margin investments as HIBOR decreases [4]. Summary by Sections Trading Activity - Trading-related revenue is expected to rise to 5.14 billion HKD, a quarter-on-quarter increase of 31%. The trading activity in Hong Kong stocks has reached new highs, with ADT increasing significantly [2]. - Southbound trading volume has also seen rapid growth, with a single-sided ADT of 76.2 billion HKD, a quarter-on-quarter increase of 36% [2]. IPO Market - The report estimates that IPO-related revenue for 3Q25 will be 440 million HKD, a quarter-on-quarter increase of 7.5%. The number of IPOs in 3Q25 is expected to be 25, with total fundraising amounting to 73.5 billion HKD [3]. Investment Income - The expected net investment income for 3Q25 is projected to be 917 million HKD, reflecting a significant decrease due to various factors including HIBOR fluctuations [4]. Profit Forecast and Valuation - The report adjusts the net profit forecasts for 2025, 2026, and 2027 to 17.7 billion HKD, 18.3 billion HKD, and 18.7 billion HKD respectively, with increases of 5.2%, 11.2%, and 14.1% [5].

Group 1 - The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Stock Exchange (HKEX) are expected to consult on optimizing the dual-class share listing rules to facilitate the listing of Chinese companies in the U.S. on the Hong Kong market [1] - The SFC Chairman emphasized the importance of protecting minority shareholders' interests while discussing potential relaxations on voting rights for dual-class shares [1] - The definition of "innovation industry" may need to be re-evaluated to prevent ineligible companies from being included under the new rules, ensuring market fairness and coherence in the WVR sector [1] Group 2 - The recent discussions on the reform of the new share pricing and allocation mechanism aim to ensure fair distribution of shares between institutional investors and retail investors [2] - The SFC trusts that professional institutional investors can play a positive role in the IPO pricing process, and if this premise fails, the mechanism will need to be reassessed [2]

Group 1 - The Hong Kong Stock Exchange (HKEX) has seen positive market reactions since launching its technology-focused listing service in May, allowing companies greater flexibility in the listing process [1] - Approximately 300 companies have submitted listing applications, with nearly half from the technology sector, followed by healthcare and biotechnology [1] - HKEX aims to continue optimizing its listing procedures to enhance flexibility for companies and will consider potential improvements to the dual-class share structure introduced seven years ago [1] Group 2 - HKEX has opened an office in Riyadh, Saudi Arabia, which is expected to strengthen communication and collaboration with regional partners [1] - The first consumer company headquartered in the Middle East plans to list in Hong Kong, indicating initial success for HKEX in attracting regional firms [1] - Currently, the total amount raised from new listings in Hong Kong exceeds $27 billion, ranking it first globally, with over $60 billion raised in post-listing financing [1] Group 3 - Regarding virtual asset companies, HKEX emphasizes that its listing principles are based on rules, requiring companies to have substantial business operations [2] - HKEX is conducting research on virtual currencies, focusing on their application scenarios and how to enhance market infrastructure [2]

Group 1 - The Hong Kong Stock Exchange (HKEX) has seen positive market reactions since launching its technology listing service in May, allowing for greater flexibility for companies to submit applications confidentially. Approximately 300 companies have applied for listings, with nearly half from the technology sector, followed by healthcare and biotechnology [1] - The HKEX aims to continue optimizing its listing processes to enhance flexibility for companies, and it is considering potential improvements to the dual-class share structure introduced seven years ago [1] - The HKEX's office in Riyadh, Saudi Arabia, has commenced operations, which is expected to strengthen communication and collaboration with regional partners. The first consumer company headquartered in the Middle East plans to list in Hong Kong, indicating initial success for the exchange [1] Group 2 - The HKEX emphasizes that it operates as a rules-based exchange, with the fundamental principle that listed companies must have substantial business operations. The exchange is currently researching virtual currency, focusing on how to optimize or advance market infrastructure related to virtual assets [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) has opened an office in Riyadh, Saudi Arabia, to enhance communication and collaboration with local partners [1] Group 1: Office Operations - The newly established office in Riyadh has commenced operations, aimed at strengthening engagement with relevant partners in the region [1] Group 2: Market Developments - HKEX has reported that a Dubai-based health products company, Le Shushi, has published its post-hearing information package, indicating a potential upcoming listing [1] - The intention of the first consumer company headquartered in the Middle East to apply for a listing in Hong Kong is seen as an initial success for the exchange [1] - HKEX emphasizes that Hong Kong can provide value-added services for companies in the Middle East [1]

Market Overview - The Hang Seng Index (HSI) closed at 26,606.21, up by 260.07 points or 0.99% on October 29, 2023 [1] - The index reached a high of 26,714.82 and a low of 26,434.77 during the trading session, with a trading volume of 42.127 million [1] Major Blue-Chip Stocks Performance - HSBC Holdings closed at HKD 109.551, an increase of 2.87% compared to the previous close [2] - Tencent Holdings closed at HKD 655.070, up by 1.56% from the previous close [2] ADR Performance - Tencent Holdings (ADR) traded at USD 655.070, reflecting an increase of 1.56% compared to its Hong Kong stock price [3] - Alibaba Group (ADR) showed a price of USD 174.812, up by 2.23% compared to its Hong Kong stock price [3] - HSBC (ADR) was priced at USD 109.551, which is 2.87% higher than its Hong Kong counterpart [3]