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]

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]

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 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 Insights - Investors today have a wide range of options for investment, including private markets and cryptocurrencies, making traditional stocks seem outdated [1][2] - Exchanges are increasingly collaborating rather than competing, reflecting a shift in the investment landscape [2] Market Performance - Stock markets are performing well, with indices reaching all-time highs, driven by retail investors engaging with popular companies and investment trends [3] - The U.S. market is showing signs of recovery, with more companies looking to go public, including private equity and government-backed firms [4] IPO Trends - Saudi Arabia has seen a significant increase in IPOs, rising from 8-9 annually to around 40-45 [5] - Hong Kong has completed nearly 80 IPOs recently, indicating a recovery in investor confidence regarding Chinese stocks [5] Investor Behavior - The rise in global IPOs is attributed to investors seeking diversification to mitigate market volatility caused by geopolitical uncertainties and protectionist policies [6] - There is a strong demand for investments in sectors like AI, semiconductors, and green technology, alongside a new trend in consumer products, exemplified by the popularity of Labubu dolls [6]

Announcement Details - The fund will resume subscription, redemption, and regular investment services starting from October 30, 2025, without further notice [1][2] - Investors are advised to make necessary arrangements in advance to avoid inconvenience due to the Hong Kong Stock Exchange's closure [1][2] Fund Operations - The fund's open days are aligned with Hong Kong Stock Connect trading days, and subscription and redemption can only be processed on these days [1] - The fund will suspend subscription, redemption, and regular investment services on October 29, 2025, as it is a non-Hong Kong Stock Connect trading day [1] New Distribution Channel - Starting from October 27, 2025, Zheshang Bank will be added as a distribution agency for the Huabao Cash Treasure Money Market Fund [3] - Only institutional investors can use this distribution channel for account opening, subscription, redemption, and other services [3]

Group 1 - Morgan Stanley reports that Hong Kong Exchanges and Clearing (HKEX) will continue to experience strong revenue and profit growth until Q3 2025, driven by a robust average daily trading volume (ADV) of HKD 286 billion and high turnover rates [1] - The report maintains an "overweight" rating for HKEX with a target price of HKD 508, citing increased trading activity in the Hong Kong capital markets as evidence of a financial system cycle bottoming out [1] - For Q3 2025, Morgan Stanley expects core business growth to remain strong, with trading fees and clearing fees increasing by 75% and 97% year-on-year, respectively [1] Group 2 - Morgan Stanley slightly raised its average daily trading volume assumptions for HKEX from 2025 to 2027, while lowering net investment income forecasts for 2025, 2026, and 2027 by 0.2%, 5.5%, and 5.6%, respectively, due to new margin guarantee arrangements effective from Q4 2025 [2] - The firm anticipates a decline in interest rates in 2026 due to Federal Reserve rate cuts, predicting a drop in net investment income of 18% in 2026 and 4.3% in 2027 [2] - Consequently, Morgan Stanley has increased its earnings per share (EPS) forecast for HKEX in 2025 by 5.8%, while maintaining EPS estimates for 2026 and 2027 largely unchanged [2]

Core Viewpoint - Morgan Stanley reports that the strong revenue and profit growth of Hong Kong Exchanges and Clearing Limited (HKEX) is expected to continue until 2025, driven by a robust average daily trading volume (ADV) of HKD 286 billion and high liquidity [1] Group 1: Financial Performance - In Q3, HKEX's trading fees and clearing fees increased by 75% and 97% year-on-year, respectively, indicating sustained strong growth in core business [1] - Revenue and profit for HKEX are projected to grow by 47% and 59% year-on-year, respectively, in Q3 2025, with EBITDA margin expected to increase by 7 percentage points to 80% [1] Group 2: Investment Income - Morgan Stanley anticipates a potential decrease in HKEX's net investment income due to a high base from Q2 foreign exchange gains and the ongoing low interest rate environment, estimating a 22% quarter-on-quarter decline in Q3 2025 [1] - The net investment income forecasts for FY 2025, 2026, and 2027 have been slightly adjusted downwards by 0.2%, 5.5%, and 5.6%, respectively, to account for new margin guarantee arrangements effective from Q4 2025 [2] Group 3: Earnings Forecast - The earnings per share (EPS) forecast for HKEX in 2025 has been raised by 5.8%, with a projected year-on-year growth of 32%, while the EPS for 2026 and 2027 is expected to remain relatively unchanged [2] - A decline of 18% in net investment income is anticipated for 2026, followed by a 4.3% decrease in 2027, influenced by expected interest rate cuts by the Federal Reserve [2]

Group 1 - The 2025 Bund Summit will be held from October 23 to 25 in Shanghai, focusing on the theme "Embracing Change: New Order, New Technology" [2] - The summit is co-hosted by the China Financial Forty Forum (CF40) and Tsinghua University (THU), featuring discussions among global policymakers, entrepreneurs, and scholars on the reshaping of the global economy and financial landscape [2] Group 2 - Hong Kong's stock market rebound is attributed to ongoing economic stimulus policies from mainland China and a resurgence of global investor confidence in the Chinese market [4] - As of the first three quarters of this year, the average daily trading volume in Hong Kong exceeded 250 billion HKD, with over 60 companies listed, raising a total of 182.9 billion HKD, making it the top global market for IPOs [4] - Approximately 300 companies are currently in the queue for listing, with about half from new economy sectors such as electric vehicles, renewable energy, artificial intelligence, new materials, and biotechnology [4] Group 3 - The "secret weapon" of Hong Kong is its connectivity mechanisms, including the Stock Connect programs, which allow for two-way capital flow between global and mainland markets [5] - Both southbound and northbound capital flows are active, with increasing participation from global investors in mainland markets and vice versa [5] Group 4 - The Hong Kong Stock Exchange aims to build a more diversified multi-asset ecosystem, expanding beyond its traditional strengths in equities to include bonds, commodities, and other asset classes [6] - The shift from a "single listing center" to a "multi-asset ecosystem platform" is underway, highlighting Hong Kong's pivotal role in the global financial landscape as new economy enterprises emerge and global capital seeks new balance [6]

Core Viewpoint - The 10th Pharmaceutical Innovation and Investment Conference, organized by the Hong Kong Stock Exchange, will be held from October 26 to 27 in Nanjing, focusing on the theme "Innovation. Ten Years. Investment. Future" [1] Group 1 - The conference will adopt a new roadshow recruitment format [1] - It aims to explore new trends in innovative development by integrating the latest domestic and international political and economic environments [1] - The event will create a dialogue platform covering the entire industry chain, including government, industry, academia, research, application, and investment [1]