Market Overview - The Hang Seng Index (HSI) closed at 26,662.27, up by 13.21 points or 0.05% from the previous close [1] - The index reached a high of 26,664.74 and a low of 26,496.53 during the trading session, with a trading volume of 43.5445 million [1] Major Blue-Chip Stocks Performance - HSBC Holdings closed at HKD 112.005, an increase of 1.36% compared to the Hong Kong market close [2] - Tencent Holdings closed at HKD 649.659, up by 0.02% from the Hong Kong market close [2] ADR Performance - Tencent Holdings (ADR) was priced at 649.659, reflecting a slight increase of 0.02% compared to its Hong Kong counterpart [3] - Alibaba Group (ADR) was priced at 161.200, down by 1.35% compared to its Hong Kong price of HKD 163.400 [3] - HSBC (ADR) was priced at 112.005, showing an increase of 1.36% compared to its Hong Kong price [3]

Core Viewpoint - The report from DBS suggests that Chinese companies listed in the U.S. may return to Hong Kong for listing, which could further expand the Hong Kong stock market and maintain strong trading momentum [1] Group 1: Market Outlook - The strong momentum in the Hong Kong stock market is expected to continue, with the average daily trading volume forecasted to increase to HKD 258 billion and HKD 275 billion for 2025 and 2026 respectively [1] - Positive factors contributing to this outlook include improved liquidity and investment sentiment, attractive valuations of Hong Kong tech stocks compared to other markets, and supportive government policies and stimulus measures [1] Group 2: Capital Inflows and IPO Activity - From July to October this year, the proportion of southbound capital in total trading volume rose to 25%, benefiting from the rise in tech stocks and an active IPO market [1] - Over 80 new stocks have been listed in Hong Kong year-to-date, including A-share companies and well-known tech and consumer stocks, which has structurally optimized the market [1]

Core Viewpoint - DBS believes that Chinese companies listed in the U.S. may return to Hong Kong for listing, which would further expand the Hong Kong stock market and maintain strong trading momentum [1] Group 1: Market Outlook - The strong momentum in the Hong Kong stock market is expected to continue, with DBS raising the average daily trading volume forecast for the Hong Kong Stock Exchange (HKEX) to HKD 258 billion and HKD 275 billion for 2025 and 2026 respectively [1] - Positive factors contributing to this outlook include improved liquidity and investment sentiment, attractive valuations of Hong Kong tech stocks compared to other markets, and supportive government policies and stimulus measures [1] Group 2: Market Activity - From July to October this year, the proportion of southbound funds in total trading volume increased to 25%, benefiting from the rise in tech stocks and an active IPO market [1] - Over 80 new stocks have been listed in Hong Kong year-to-date, including A-share companies and well-known tech and consumer stocks, which has optimized the market structure [1]

A-share Market - In early November, over 35 brokerages have conducted research on companies in the photovoltaic component industry chain, semiconductor material stocks, and leading consumer electronics firms [2] - The 1388 companies listed on the ChiNext board reported a total operating income of 3.25 trillion yuan for the first three quarters of 2025, representing a year-on-year growth of 10.69%, with net profit reaching 244.66 billion yuan, up 18.69% year-on-year [2] - Beijing Bank and Shanghai Bank have signed stock repurchase loan commitment letters with several listed companies, with other banks like Ningbo Bank, Jiangsu Bank, and Nanjing Bank also expected to qualify for this loan business [2] - The Shanghai Stock Exchange reported that 2.3 million new A-share accounts were opened in October 2025, bringing the total new accounts for the first ten months to 22.46 million, a year-on-year increase of 10.57% [3] Financial Market - The Ministry of Finance successfully issued 4 billion USD in sovereign bonds in Hong Kong, with a total subscription amount of 118.2 billion USD, 30 times the issuance amount [4] - The Hong Kong Stock Exchange reported a record high in total revenue and net profit for the first three quarters of the year, with total revenue of 21.85 billion HKD, up 37% year-on-year, and net profit of 13.42 billion HKD, up 45% year-on-year [4][5] - The People's Bank of China conducted a 700 billion yuan reverse repurchase operation with a term of three months, and also conducted a 65.5 billion yuan 7-day reverse repurchase operation at a rate of 1.40% [4][5] Real Estate Sector - Sunac China announced that its approximately 9.6 billion USD offshore debt restructuring plan was approved by the Hong Kong High Court, making it the first large real estate company to achieve a "zero" status on offshore debt [3] - Country Garden's offshore debt restructuring plan was successfully passed with over 75% approval from creditors in both debt groups, indicating a significant milestone for the company [6] - The real estate market in major cities showed a recovery in transaction volume during September, with Shanghai leading in new and second-hand home transactions in October [7] Banking Sector - A total of 42 A-share listed banks reported net commission and fee income of 578.2 billion yuan for the first three quarters of 2025, a year-on-year increase of 4.60% [8]

Investment Rating - The report suggests a focus on two main lines: (1) Listed securities firms with better-than-expected Q3 performance and (2) multi-financial companies with impressive growth rates, particularly recommending Hong Kong Exchanges and Clearing [2] Core Insights - The average daily trading volume of A-shares in 2025 from January to October reached 2.02 trillion yuan, a year-on-year increase of 92% [1] - The margin trading balance continues to grow, with financing and securities lending balances as of November 6 being 248.05 billion yuan and 183 billion yuan, respectively, marking increases of 33.8% and 75.3% compared to the end of last year [1] - The insurance sector saw a cumulative original premium income of 5.21 trillion yuan in the first nine months of 2025, reflecting a year-on-year growth of 8.8% [36] Summary by Sections Securities Sector - The average daily margin trading balance in 2025 is projected to be 1.999 trillion yuan, a year-on-year increase of 32% [1] - New account openings in October decreased significantly, with 2.31 million new accounts opened, a 66% drop compared to October last year [35] Insurance Sector - The introduction of unified reporting guidelines for non-auto insurance is expected to enhance the profitability and market share of large insurance companies [3] - The report anticipates a double-digit growth in new premium income for the insurance sector in 2026, driven by strong investment performance in 2025 [4] - The insurance asset management sector has seen a 25.1% year-on-year increase in the registration scale of asset-backed securities (ABS) in the first three quarters of 2025 [40]

Core Viewpoint - The company shows significant revenue growth driven by trading and settlement fees, with a positive outlook for future performance and valuation improvement [1][2][3][4] Group 1: Financial Performance - For the first three quarters of 2025, the company's revenue and profit attributable to shareholders reached HKD 218.5 billion and HKD 134.2 billion, respectively, representing year-on-year increases of 37% and 45% [1] - In Q3 alone, the revenue and profit were HKD 78 billion and HKD 49 billion, showing year-on-year growth of 45% and 56%, and quarter-on-quarter growth of 8% and 10% [1] - The trading, settlement, listing, custody, data, and other net investment income saw year-on-year increases of 57%, 66%, 16%, 25%, 8%, 10%, and 4%, respectively [1] Group 2: Market Dynamics - The trading fees and system usage fees for the first three quarters of 2025 amounted to HKD 78 billion, up 57% year-on-year, with spot, derivatives, and commodity trading contributing HKD 47 billion, HKD 20 billion, and HKD 11 billion, respectively [2] - The settlement and clearing fees reached HKD 53 billion, reflecting a 66% year-on-year increase, driven by record trading volumes in the Hong Kong spot market [2] - The number of new listings in the Hong Kong market increased to 69, a 53% year-on-year rise, with total fundraising amounting to HKD 1,883 billion, more than three times that of the same period in 2024 [3] Group 3: Investment Returns and Valuation - The net investment income for the first three quarters of 2025 was HKD 38.9 billion, a 4% year-on-year increase, although the investment yield decreased due to lower returns from external investment portfolios [4] - The expected dividend yield for 2025 is 3.0%, assuming a constant payout ratio of 90%, with potential benefits from foreign capital inflow due to anticipated interest rate cuts by the Federal Reserve [4] - The current price-to-earnings ratio (PE) is 31.2 times, positioned at the 22nd percentile over the past decade, indicating potential for valuation improvement [4]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported better-than-expected performance for the first three quarters of 2025, with significant growth in both revenue and net profit driven by increased market trading activity [1][5] Financial Performance - For Q3 2025, HKEX achieved revenue and other income of HKD 7.775 billion, a year-on-year increase of 44.73% and a quarter-on-quarter increase of 7.70% [1] - The net profit attributable to shareholders for Q3 was HKD 4.900 billion, reflecting a year-on-year growth of 55.80% and a quarter-on-quarter growth of 10.31% [1] - Total revenue and other income for the first three quarters reached HKD 21.851 billion, up 36.63% year-on-year, marking a record high [1] Revenue Breakdown - In Q3 2025, trading fees and system usage fees, along with settlement and custody fees, accounted for HKD 5.484 billion, representing 70.53% of total revenue, with a year-on-year increase of 77.30% [1] - For the first three quarters, these fees totaled HKD 14.213 billion, making up 65.05% of total revenue, with a year-on-year increase of 57.05% [1] Market Activity - The trading activity in the Hong Kong stock market reached historical highs, with average daily trading (ADT) for Q3 2025 increasing by 144.80% year-on-year to HKD 2,863.58 billion [1] - Southbound capital inflows from mainland China totaled HKD 1,084.172 billion from January to September 2025, a year-on-year increase of 135.01% [1] IPO Activity - In the first three quarters of 2025, HKEX saw 68 new listings, raising HKD 187.745 billion, a year-on-year increase of 262.51% [2] - Q3 2025 alone had 25 new listings, with a fundraising amount of HKD 78.865 billion, up 86.79% year-on-year [2] Investment Income - Despite a decline in HIBOR rates due to the Federal Reserve's actions, investment income remained positive, with net investment income for the first three quarters reaching HKD 3.893 billion, a year-on-year increase of 4.43% [3] - The annualized net investment return for margin and clearing funds was 1.98% and 1.85%, respectively, showing a decline compared to the previous year [3] Future Outlook - The company expects continued high performance in 2025, supported by the Federal Reserve's interest rate cuts, ongoing southbound capital inflows, and the relative valuation advantage of Hong Kong stocks [4][6] - The projected target price for HKEX is HKD 543 per share, maintaining a "buy" rating based on historical valuation levels and market conditions [5][6]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong financial performance for the first three quarters of 2025, with significant year-on-year growth in both revenue and net profit, driven by record trading volumes in the cash market and leading global IPO fundraising [1][2]. Financial Performance - For the first three quarters of 2025, HKEX achieved revenue and net profit attributable to shareholders of HKD 21.85 billion and HKD 13.42 billion, representing year-on-year increases of 36.6% and 44.8% respectively [1]. - In Q3 2025, the company recorded revenue and net profit of HKD 7.78 billion and HKD 4.90 billion, with year-on-year growth of 44.7% and 55.8%, and quarter-on-quarter increases of 8% and 10% [1]. - Q3 net profit reached a historical high, with various segments such as trading, listing, clearing, and data services showing substantial year-on-year growth [1]. Market Activity - The average daily trading (ADT) for Hong Kong stocks in the first three quarters of 2025 was approximately HKD 256.4 billion, a year-on-year increase of 126.3%, with Q3 ADT reaching HKD 286.4 billion, up 142.3% year-on-year [2]. - The Hong Kong IPO market saw 69 new listings in the first three quarters, raising HKD 188.3 billion, a significant year-on-year increase of 238.7% [2]. - As of the end of October, HKEX's IPO fundraising exceeded USD 26 billion, ranking first globally [2]. Investment Income - Margin investment income increased by 16% due to a 47% year-on-year growth in the margin scale of the Hong Kong clearing company [2]. - The company redeemed its external portfolio in Q2 2025, which negatively impacted investment income, with external portfolio returns down 39% year-on-year [2]. Future Outlook - The company is optimistic about the deepening of mutual market access and the appreciation of the Renminbi, leading to an upward revision of the net profit forecast for 2025 to HKD 18 billion, maintaining a "buy" rating [3].

Group 1 - WeRide Inc. successfully completed a dual primary listing on the Hong Kong Stock Exchange with a stock code of 0800.HK, following its listing on NASDAQ in 2024, expanding its global capital market strategy [1] - The total number of shares offered globally before the greenshoe option was 88.25 million, with 17.65 million shares allocated for public offering and 70.60 million shares for international placement, priced at HKD 27.1 per share, raising a total of HKD 2.39 billion [1] - The completion of the Hong Kong listing allows WeRide to establish a dual financing platform of US and Hong Kong stocks, enhancing its financing flexibility and risk resilience, which is crucial for the long-term competition in autonomous driving commercialization [1] Group 2 - Founded in 2017, WeRide is a leading global autonomous driving technology company operating in over 30 cities across 11 countries, with more than 2,200 days of operational experience [2] - The company possesses one of the largest L4 autonomous vehicle fleets globally, with over 1,500 autonomous vehicles, including more than 700 Robotaxis, and has the second-largest Robotaxi fleet in the Middle East outside of China and the US [2] - WeRide is focused on developing safe and reliable autonomous driving technologies, with applications in smart mobility, smart logistics, and smart sanitation, and has entered the commercialization phase with a product matrix that includes Robotaxi, Robobus, Robovan, Robosweeper, and Advanced Driver-Assistance Systems [2]

Market Overview - US stock indices showed mixed performance on Friday, with the Hang Seng Index ADR rising to 26,288.46 points, an increase of 46.63 or 0.18% compared to the Hong Kong close [1]. Major Blue-Chip Stocks - HSBC Holdings closed at 110.854 HKD, up 0.78% from the Hong Kong close; Tencent Holdings closed at 633.674 HKD, down 0.05% [2]. Stock Performance Summary - Tencent Holdings (00700) latest price: 634.000 HKD, down 10.000 HKD (-1.55%); ADR price: 81.480 USD [3] - Alibaba Group (09988) latest price: 160.100 HKD, down 4.900 HKD (-2.97%); ADR price: 166.340 USD [3] - HSBC Holdings (00005) latest price: 110.000 HKD, down 0.700 HKD (-0.63%); ADR price: 71.270 USD [3] - Xiaomi Group (01810) latest price: 42.240 HKD, down 1.200 HKD (-2.76%); ADR price: 27.000 USD [3] - AIA Group (01299) latest price: 81.500 HKD, up 0.300 HKD (0.37%); ADR price: 42.190 USD [3] - Meituan (03690) latest price: 102.000 HKD, down 1.300 HKD (-1.26%); ADR price: 26.270 USD [3] - JD.com (09618) latest price: 124.000 HKD, down 2.900 HKD (-2.29%); ADR price: 31.790 USD [3] - Kuaishou Technology (01024) latest price: 68.250 HKD, down 4.300 HKD (-5.93%); ADR price: 1.850 USD [3]