Core Viewpoint - After three years of sluggishness, the Hong Kong stock issuance market has rebounded strongly, with expectations to reclaim its position as the largest IPO market globally in 2025 [2][4]. Group 1: Market Performance - In the first half of 2025, Hong Kong Exchanges and Clearing Limited (HKEX) reported total revenue of HKD 14.076 billion, a year-on-year increase of 32.53%, and net profit of HKD 8.519 billion, up 39%, both reaching historical highs for a half-year period [2]. - The Hong Kong IPO market welcomed 44 new companies, raising a total of HKD 109.4 billion, a year-on-year increase of 716% [2]. - As of June 30, 2025, there were 207 IPO applications being processed, more than double the 84 applications at the end of the previous year [2]. Group 2: Factors Driving Growth - The resurgence in the IPO market is attributed to a combination of policy support, market conditions, and supply from companies [5]. - Policy measures from mainland China, including increased funding support and interest rate cuts, have bolstered business confidence, while the optimization of listing rules has facilitated the process for new economy companies [5]. - The approval efficiency for IPOs has significantly improved, with regulatory bodies supporting leading companies from the mainland to list in Hong Kong [5]. Group 3: Leading Companies and Trends - Major A-share companies such as CATL, Hengrui Medicine, and Haidilao have contributed significantly to the IPO market, raising over HKD 71.8 billion, accounting for nearly 70% of the total IPO amount [6]. - The "A+H" model has gained traction, allowing companies to broaden their financing channels and leverage Hong Kong's international platform for global expansion [6]. - The rise of AI and innovative sectors has attracted more tech companies, including unprofitable biotech firms, to consider IPOs in Hong Kong [6][7]. Group 4: Market Liquidity and Valuation - Improved liquidity and valuation recovery in the Hong Kong market have enhanced the attractiveness of IPOs, with average daily trading volume reaching HKD 240.2 billion, a year-on-year increase of 118% [8]. - The average daily trading volume for ETFs surged to HKD 33.8 billion, up 184% [8]. - The refinancing function in the Hong Kong market has also been active, with refinancing amounts exceeding IPO sizes, indicating market depth and ease of continued financing for companies [8]. Group 5: Global Capital Trends - The shift in global capital flows, driven by geopolitical risks and inflation concerns, has led international investors to favor Hong Kong as a key IPO destination [9]. - The recent tensions between the U.S. and China have not deterred IPO activities; instead, they have reinforced Hong Kong's position as a preferred market for Chinese companies [9]. - International institutions have recognized Hong Kong's resilience, with foreign capital returning to the market, evidenced by significant participation from global funds in recent IPOs [9]. Group 6: Future Outlook - Hong Kong's unique advantages, such as the absence of capital gains and inheritance taxes, free capital flow, and a legal system aligned with international standards, are expected to continue attracting IPOs [10]. - The transformation of the market from pessimism to enthusiasm within a year signifies a reshaping of the international financial landscape, with Hong Kong poised to play a pivotal role [10].

Core Viewpoint - The continuous rise of the Shanghai Composite Index is expected to further catalyze the inflow of personal and institutional funds, indicating significant potential for residents' equity asset allocation, particularly in the non-bank financial sector, which is viewed positively for strategic allocation opportunities as the fundamentals improve [1] Group 1: Securities Industry - The average daily trading volume of stock funds reached 3.01 trillion yuan, a 21% increase week-on-week, with a cumulative average daily trading volume of 1.75 trillion yuan by August 22, representing a 90% year-on-year increase [2] - The China Securities Regulatory Commission (CSRC) has revised and officially implemented the "Securities Company Classification Evaluation Regulations," which aims to guide the industry towards more concentrated development and differentiated growth for small and medium-sized institutions [2] - Market trading activity continues to rise, with an expansion in margin financing and securities lending, as well as increased self-owned equity positions and robust overseas business, which are expected to lead to better-than-expected performance for securities firms [3] Group 2: Insurance Industry - According to a recent survey by the China Insurance Asset Management Association, insurance institutions have shown a significant rebound in confidence regarding the A-share and bond markets for the second half of 2025, with stocks being the preferred investment asset [4] - As of June 30, the balance of insurance funds reached 36.23 trillion yuan, an 8.9% increase from the beginning of the year, with a continued increase in equity and bond allocations while reducing bank deposits and non-standard investments [4] - The stable long-term interest rates and improved asset yield expectations are expected to enhance the return on equity (ROE) for insurance companies, leading to a potential recovery in price-to-book (PB) valuations, with recommendations for undervalued companies like China Pacific Insurance and Ping An Insurance [4] Group 3: Recommended Stocks - Recommended stocks include Guosen Securities, Dongfang Securities, China Pacific Insurance, Ping An Insurance, Jiangsu Jinzhong, Hong Kong Stock Exchange, and others [5] Group 4: Beneficiary Stocks - Beneficiary stocks include CICC, Tonghuashun, Jiufang Zhitu Holdings, and New China Life Insurance [6]

Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1] Core Insights - The non-bank financial sector is expected to continue experiencing high growth in performance, supported by a strengthening market [1] - The insurance sector's investment balance has surpassed 36 trillion yuan, with a continued increase in stock allocation [24][25] - The securities sector has seen a significant increase in trading volume, with various reforms being implemented by the Hong Kong Stock Exchange [18][22] - The multi-financial sector is transitioning into a stable growth phase, with trust assets continuing to grow despite a decline in profits [30][34] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Sectors - In the recent five trading days (August 18-22, 2025), only the multi-financial sector outperformed the CSI 300 index, rising by 6.40% [8] - Year-to-date, the multi-financial sector has increased by 17.78%, followed closely by the insurance sector at 17.68% [9] 2. Insights on Non-Bank Financial Sub-Sectors 2.1 Securities - Trading volume has significantly increased, with an average daily trading amount of 23,820 billion yuan in August, up 245.13% year-on-year [18] - The margin trading balance reached 21,468 billion yuan, a year-on-year increase of 52.31% [18] - The average PB valuation for the securities industry is projected at 1.4x for 2025E, with recommendations for leading firms like CITIC Securities and Tonghuashun [22] 2.2 Insurance - The insurance sector's investment balance reached 36.23 trillion yuan, with an 8.9% increase since the beginning of the year [24] - The proportion of bonds in the investment portfolio has risen to 51.9%, while stocks account for 8.8% [24] - The insurance industry is characterized by a strong cyclical nature, with expectations for improved performance as the economy recovers [28] 2.3 Multi-Financial - The trust industry saw its asset scale grow to 29.56 trillion yuan, but profits declined significantly by 45.5% [30] - The futures market experienced a trading volume of 1.059 billion contracts in July, with a transaction value of 71.31 trillion yuan, reflecting a year-on-year growth of 48.89% [35] - The report suggests that innovative risk management services will be a key growth area for the futures industry [38] 3. Industry Ranking and Key Company Recommendations - The recommended ranking for the non-bank financial sector is insurance > securities > other multi-financial [44] - Key companies recommended include China Ping An, New China Life, China Pacific Insurance, CITIC Securities, Tonghuashun, and Jiufang Zhitu Holdings [44]

受益港股流动性改善，盈利续创新高 香港交易所(0388) 香港交易所 2025 年半年报点评 | [姓名table_Authors] | 电话 | 邮箱 | 登记编号 | [Table_Invest] 评级： | 增持 | | --- | --- | --- | --- | --- | --- | | 刘欣琦(分析师) | 021-38676647 | liuxinqi@gtht.com | S0880515050001 | | | | 吴浩东(分析师) | 010-83939780 | wuhaodong@gtht.com | S0880524070001 | [当前价格 Table_CurPrice] (港元)： | 448.00 | | 肖尧(分析师) | 021-23185695 | xiaoyao3@gtht.com | S0880525040115 | | | 本报告导读： 受益于港股交投活跃度显著提振，半年度利润创历史新高；受益港股扩容以及自身 服务边界拓宽，内地优质企业赴港上市将是历史机遇，提升港交所中长期盈利中枢。 投资要点： | 财务摘要(百万港元) | 2 0 23A | 2 0 24A ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved record high revenue and profit in the first half of 2025, with total revenue of 14.08 billion HKD, a year-on-year increase of 32.5% [5] - The increase in revenue was primarily driven by heightened trading activity in the Hong Kong stock market, with average daily trading volume rising by 117.6% to 240.2 billion HKD [5][7] - The report projects continued growth in the second half of 2025, supported by favorable market conditions and increased listings from mainland companies [8] Financial Performance Summary - Total revenue for the first half of 2025 was 14.08 billion HKD, with a net profit of 8.52 billion HKD, reflecting a year-on-year growth of 39.1% [5] - The EBITDA margin improved to 79%, up by 6 percentage points compared to the previous year [5] - The company’s investment income netted 2.88 billion HKD, a 14.0% increase year-on-year, benefiting from non-recurring foreign exchange gains [6] Market Activity Summary - The average daily trading volume for stock securities reached 222.8 billion HKD, marking a 122.1% increase year-on-year [7] - The derivatives market also saw significant growth, with average daily trading volume increasing by 72.3% [7] - The number of new listings in Hong Kong rose to 44 in the first half of 2025, a 46.7% increase year-on-year, with total funds raised amounting to 109.4 billion HKD [8] Earnings Forecast - The report revises the company's net profit forecasts for 2025-2027 to 17.3 billion, 18.5 billion, and 19.5 billion HKD respectively, reflecting an optimistic outlook based on current performance [8][9]

Market Overview - US stock indices collectively rose on Friday, with the Hang Seng Index ADR closing at 25,555.78 points, up 216.64 points or 0.85% compared to the Hong Kong close [1][2] Hang Seng Index ADR Details - The Hang Seng Index ADR had a closing price of 25,555.78, with a high of 25,596.02 and a low of 25,223.16 during the trading session [2] - The average price for the session was 25,409.59, with a trading volume of 49.472 million [2] Major Blue-Chip Stocks Performance - HSBC Holdings closed at HKD 102.647, up 1.33% from the Hong Kong close [3] - Tencent Holdings closed at HKD 608.57, reflecting a 1.43% increase compared to the Hong Kong close [3] - Alibaba Group (ADR) rose by 1.77%, closing at HKD 120.085 [3] - Other notable performers included Xiaomi Group (+1.65%), Meituan (+2.03%), and Hong Kong Exchanges (+1.60%) [3]

Macro Insights - The economic growth rate in August is expected to be supported by exports and consumption policies, despite a significant slowdown in the real estate sector, with a target of 5% annual growth remaining achievable [1][15][12] - The industrial added value in July grew by 5.7% year-on-year, with the manufacturing sector showing resilience, particularly in high-tech products and equipment manufacturing [12][13] - Fixed asset investment growth slowed to 1.6% year-on-year in the first seven months, primarily due to a decline in real estate investment, which fell by 12% [13][14] Strategy Insights - Current channels for resident capital entering the market include increasing financing balances and active personal investor accounts, leading to a positive feedback loop in the market [2] - The "anti-involution" market trend can be analyzed through policy expectations and real-world transmission, indicating a shift from theme-driven to profit-driven market dynamics [2] - The technology and small-cap sectors are expected to continue outperforming as more external funds enter the market [2] Industry Reports - The consumer electronics sector is anticipated to see significant opportunities with the upcoming release of new products, particularly in AI-related applications [8] - The coal mining industry is experiencing a continuous improvement in fundamentals, with the price of thermal coal expected to rise [8] - The healthcare sector, particularly innovative drugs, is projected to maintain a positive outlook due to improved profitability [8]

Core Points - The Shanghai Composite Index opened high and rose, with the CES100 index increasing by 1.17% to 5617.05 points and a trading volume of 1028.52 billion [1] - The CES100 index has seen a 2.51% increase over the past month, an 8.23% increase over the past three months, and a year-to-date increase of 30.83% [1] Index Composition - The top ten holdings of the CES100 index are Tencent Holdings (10.78%), HSBC Holdings (10.05%), Alibaba-W (9.36%), Xiaomi Group-W (6.92%), AIA Group (5.61%), Meituan-W (5.24%), Hong Kong Exchanges and Clearing (4.12%), Standard Chartered Group (2.51%), Prudential (1.96%), and Pop Mart (1.87%) [2] - The CES100 index is fully composed of stocks from the Hong Kong Stock Exchange [2] Sector Allocation - The sector allocation of the CES100 index includes Financials (27.65%), Consumer Discretionary (26.49%), Communication Services (14.67%), Information Technology (9.33%), Healthcare (5.67%), Real Estate (5.39%), Utilities (3.72%), Industrials (3.30%), Consumer Staples (3.15%), and Materials (0.63%) [2] Tracking Funds - Public funds tracking the CES100 index include Huaan CES Hong Kong Stock Connect Selected 100 ETF Link A, Huaan CES Hong Kong Stock Connect Selected 100 ETF Link C, and Huaan CES Hong Kong Stock Connect Selected 100 ETF [2]

Group 1 - The Hang Seng Index (HSI) is expected to open higher next Monday, with predictions of a rise between 300 to 500 points, aiming to challenge the 26,000 mark [1] - Current resistance level for HSI is at 25,578 points, and if broken, it could test 25,995 points [1] - The closing index is at 25,339 points, which is close to the day's high of 25,349 points, indicating a positive trend [1] Group 2 - ZTE Corporation (00763.HK) shows strong momentum, with a recent price of 36.06 HKD, and a potential resistance at 39.9 HKD and 43 HKD [8] - Investors holding a call option with an exercise price of 40 HKD are seeing a 12% out-of-the-money level based on current prices [8] Group 3 - Hua Hong Semiconductor (01347.HK) closed at 56 HKD, with a buy signal despite a significant price increase, and resistance at 63.4 HKD [10] - Support levels are identified at 47.1 HKD and 43.1 HKD [10] Group 4 - Xiaomi Group (01810.HK) closed at 52.55 HKD, below the Bollinger channel, indicating a sell signal [17] - Support levels are at 50.8 HKD and 49.2 HKD, with resistance at 54.6 HKD [17] Group 5 - Kuaishou Technology (01024.HK) fluctuated between 69.2 HKD and 75.3 HKD, with a buy signal but not reaching a strong buy position [20] - Support levels are at 70.5 HKD and 67 HKD [20] Group 6 - Hong Kong Exchanges and Clearing (00388.HK) closed at 448 HKD, with a buy signal and a first resistance level at 456 HKD [28] - Support levels are at 436 HKD and 426 HKD [28]

Core Insights - Hong Kong Stock Exchange (HKEX) reported a record high for its mid-year performance in 2025, with revenue and other income reaching HKD 14.076 billion, a year-on-year increase of 33%, and shareholder profit amounting to HKD 8.519 billion, up 39% [1][2] Financial Performance - HKEX's net profit for the first half of 2025 was HKD 8.519 billion, with the second quarter net profit at HKD 4.442 billion, reflecting a 41% increase compared to the second quarter of 2024 [2] - The average daily trading volume in the Hong Kong stock market was HKD 240.2 billion, a significant year-on-year growth of 118% [2] - The daily trading volume for ETFs reached HKD 33.8 billion, marking a 184% increase year-on-year [2] IPO Market Activity - In the first half of 2025, HKEX welcomed 44 new companies, raising a total of HKD 109.4 billion through IPOs, which is a remarkable year-on-year increase of 716% [5] - As of June 30, 2025, HKEX was processing 207 listing applications, indicating a robust IPO market [5] - The strong performance in the IPO market is attributed to policy benefits, market recovery, and the demand for companies to expand internationally [5] Future Outlook - HKEX's CEO, Charles Li, expressed confidence in the exchange's strong performance and plans to enhance platforms, infrastructure, and product offerings to provide diverse products and liquidity for investors [2] - JPMorgan has raised its profit forecasts for HKEX, anticipating an increase in trading volumes, with average daily trading volume predictions for fiscal years 2025 to 2027 adjusted to HKD 235 billion, HKD 250 billion, and HKD 252 billion respectively [6]