Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [2][9] Core Views - The report indicates that the Hong Kong stock market's liquidity is expected to continue to rise due to a series of connectivity policies, leading to increased market activity and valuation [2][6] - For the years 2025-2027, the company is projected to achieve revenues and other income of HKD 282.86 billion, HKD 304.18 billion, and HKD 322.14 billion, respectively, with net profit attributable to shareholders of HKD 173.74 billion, HKD 188.57 billion, and HKD 200.92 billion, corresponding to PE ratios of 30.91, 28.48, and 26.73 times [2][6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenues and other income of HKD 218.51 billion, a year-on-year increase of 36.63%, and a net profit attributable to shareholders of HKD 134.19 billion, up 44.8% year-on-year [6][9] - Revenue growth was driven by significant increases in trading and transaction fees, listing fees, and settlement and clearing fees, with respective year-on-year growth rates of 57.28%, 17.08%, and 65.66% [6][9] Market Activity - The report highlights a substantial increase in trading activity across the cash, derivatives, and commodities markets, with daily average trading volumes for cash securities up 132.4% year-on-year [6][9] - The report notes that the number of new listings and the amount raised in the first three quarters of 2025 saw significant growth, with new listings totaling 69 and fundraising amounts increasing by 258.5% [6][9] Investment Income - Investment income for Q3 2025 was reported at HKD 10.18 billion, reflecting a quarter-on-quarter decline of 16% and a year-on-year decrease of 34% [6][9] - The annualized investment return rate for margin and clearing house fund investments decreased by 0.15 percentage points to 1.46% [6][9] Future Projections - The report anticipates continued growth in revenues and profits for the company, driven by favorable market conditions and policy support, with projected revenues of HKD 282.86 billion in 2025, HKD 304.18 billion in 2026, and HKD 322.14 billion in 2027 [2][10]

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (388) with a target price raised to HKD 550.0, indicating a potential upside of 28% from the previous closing price [5]. Core Insights - The company reported a significant increase in revenue and net profit for the first nine months of 2025, with revenue reaching HKD 21.9 billion (up 37% year-on-year) and net profit at HKD 13.4 billion (up 45% year-on-year) [3][4]. - The report highlights strong market activity, particularly in the cash market, with average daily trading volume doubling to HKD 256.4 billion (up 126% year-on-year) [3][4]. - The IPO market remains robust, with HKD 188.3 billion raised from 69 new listings, marking a threefold increase compared to the same period in 2024 [4]. Financial Performance Summary - For the first nine months of 2025, the company achieved an EBITDA of HKD 17.2 billion, reflecting a 48% year-on-year increase, with an EBITDA margin of 79% (up 5 percentage points) [3]. - The report projects total revenue of HKD 28.1 billion for 2025, representing a 25.4% increase, and net profit of HKD 16.4 billion, a 26% increase [7]. - The diluted earnings per share are expected to rise to HKD 13.0 in 2025, with a projected dividend of HKD 11.6, resulting in a dividend yield of 2.7% [7]. Market and Strategic Developments - The report notes the successful diversification strategy of the company, with average daily contracts in the derivatives market increasing by 11% to 1.7 million contracts [4]. - The company continues to enhance its market structure, including lowering minimum tick sizes and exploring shorter settlement cycles, which are expected to improve market efficiency and product diversity [5]. - The report emphasizes the strong correlation between the company's performance and market trading volumes, suggesting that the company is well-positioned to benefit from ongoing market trends [5].

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]

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]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) reported a 56% year-on-year increase in net profit for Q3 2025, exceeding expectations by 7% [1] - The growth was primarily driven by robust core revenue growth, record average daily trading volume, and strong initial public offering (IPO) momentum [1] - Net interest income decreased by 13.6% to HKD 1 billion, impacted by a decline in Hong Kong interbank offered rates and reduced corporate investment portfolio returns [1] - The outlook for average daily trading volume in 2026 remains optimistic due to the Federal Reserve's interest rate cuts and strong southbound capital inflows [1] - The target price for HKEX has been raised to HKD 548, maintaining a "Buy" rating [1]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) reported record high revenues and profits for the third quarter of 2025, marking the third consecutive quarter of historical highs [3] - The company's net profit attributable to shareholders reached HKD 4.9 billion, a year-on-year increase of 56% [3] - The growth in performance was primarily driven by record trading volumes in the spot market, leading to a 54% year-on-year increase in main business revenue [3] Financial Performance - For the first three quarters of 2025, net profit attributable to shareholders grew by 45% year-on-year to HKD 13.419 billion, also a record for the nine-month period [3] - The average daily trading volume in the spot market increased by 141% year-on-year, while the daily trading amounts for Stock Connect and Shenzhen-Hong Kong Stock Connect saw year-on-year increases of 285% and 144%, respectively [3] - The new equity market performed strongly, with total fundraising amounting to HKD 188.3 billion in the first three quarters, ranking first globally [3] Strategic Developments - The company made several strategic advancements, including the implementation of the first phase to reduce the minimum tick size and discussions on shortening the stock settlement cycle [3] - To enhance global connectivity, HKEX signed a memorandum of understanding with the Abu Dhabi Securities Exchange and officially included Hong Kong as a delivery point for the London Metal Exchange (LME) [3] - Management expressed commitment to investing in the construction of a diversified asset ecosystem, with strong trading volumes maintained in the fourth quarter to date [3]