Financial Performance - The total revenue and other income for 2022 was HKD 18,456 million, a decrease of 12% compared to HKD 20,950 million in 2021[27] - The main business revenue decreased by 9% to HKD 18,374 million from HKD 20,103 million in 2021[27] - EBITDA for 2022 was HKD 13,185 million, down 19% from HKD 16,269 million in 2021, with an EBITDA margin of 72%, a decline of 6%[26] - Shareholders' profit attributable to the company was HKD 10,078 million, a decrease of 20% from HKD 12,535 million in 2021[27] - The company recorded a net investment loss of HKD 48 million in 2022, compared to a profit of HKD 708 million in 2021[27] - The basic earnings per share decreased by 20% to HKD 7.96 from HKD 9.91 in 2021[27] - The group reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 15% year-over-year growth[81] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[1] Market Activity - The number of new companies listed in Hong Kong reached 90 in 2022, indicating a recovery in the IPO market in the second half of the year[14] - In 2022, 90 new stocks were listed on the Hong Kong Stock Exchange, raising a total of HKD 104.6 billion, with 65% of the funds coming from new economy sectors[56] - The average daily trading volume of the secondary market reached HKD 124.9 billion, a decrease of 25% compared to 2021, but still within a normal long-term range[58] - The average daily trading volume of the Northbound Stock Connect was RMB 100.4 billion, down 16% from 2021, while the Southbound trading volume averaged HKD 31.7 billion, down 24%[56] - The average daily trading value of equity securities on the exchange in Q4 2022 was 113.6 billion HKD, up 5% from Q4 2021[43] - The average daily trading volume of derivative products in Q4 2022 increased by 66% to 842,400 contracts[43] - The average daily trading amount of equity securities products on the exchange decreased by 26% to CNY 109.0 billion in 2022 from CNY 146.6 billion in 2021[124] New Initiatives and Products - The company launched several new products, including the first carbon trading platform, Core Climate, and a series of new derivative products[14] - The company launched a new international carbon market, Core Climate, to enhance the regional and global carbon market ecosystem[47] - The company plans to introduce a "HKD-CNY dual counter model" in H1 2023 to support the internationalization of the RMB[47] - The introduction of the "Swap Connect" plan aims to enhance the interconnectivity of the interest rate swap market between Hong Kong and mainland China[61] - The introduction of Asia's first cryptocurrency ETFs in December 2022 allowed retail investors to trade digital assets under high regulatory standards[72] - The company launched a new VaR risk management platform on June 13, 2022, enhancing capital efficiency for settlement participants[191] Strategic Outlook - The macroeconomic environment remains challenging, with ongoing concerns about global economic slowdown, persistent inflation, and geopolitical tensions impacting capital market performance[53] - HKEX's vision for 2022 focused on building a "future-ready leading market" with three strategic pillars: connecting China with the world, capital with opportunities, and the present with the future[55] - The outlook for 2023 is cautiously optimistic, with expectations of improved market sentiment and a commitment from mainland China to continue market opening[120] - The company is preparing for future growth opportunities driven by China's carbon reduction initiatives and the rapid increase in cross-border investments[73] Corporate Governance and Social Responsibility - HKEX donated over HKD 130 million through its charity fund in 2022, supporting various projects focused on financial education, inclusivity, poverty alleviation, and environmental sustainability[50] - The company plans to enhance its corporate social responsibility initiatives, allocating $50 million for community projects in the next fiscal year[106] - The company has appointed new independent directors to strengthen governance and oversight[108] Trading and Operational Metrics - The average daily trading volume of LME fee-paying metal contracts decreased by 7% compared to 2021[46] - The average daily trading volume for derivatives products reached historical highs of 712,123 contracts and 107,474 contracts for after-hours trading sessions in 2022[160] - The total trading volume for futures and options reached a record high of 319,847,360 contracts in 2022, an increase of 11% compared to 2021[160] - The average daily trading amount of structured products in Hong Kong reached HKD 15.9 billion in 2022, accounting for 13% of the average daily trading amount of the underlying assets[169] Investment and Research - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[85] - Research and development investments increased by 30%, focusing on innovative technologies to drive future growth[7] - The company completed the expansion of its new data hall in October 2022, enhancing its equipment hosting service offerings[199]

Financial Performance - In Q3 2022, the company's revenue and other income amounted to HKD 4.318 billion, a decrease of 19% compared to Q3 2021[4] - Shareholders' profit attributable to the company was HKD 2.263 billion, a decrease of 30% from HKD 3.251 billion in Q3 2021[4] - Revenue and other income for the first three quarters of 2022 amounted to HKD 13,255 million, a decrease of 18% compared to HKD 16,218 million in the same period of 2021[6] - Main business revenue decreased by 13% to HKD 13,602 million, down from HKD 15,645 million in the first three quarters of 2021, primarily due to a decline in trading and settlement fees[6] - Revenue and EBITDA for the first three quarters of 2022 decreased by 22% and 26% respectively compared to the same period in 2021[12] - Operating profit for the nine months ended September 30, 2022, was HKD 8,306 million, down 29.0% from HKD 11,765 million in the previous year[59] - Net profit for the nine months ended September 30, 2022, was HKD 7,097 million, representing a decline of 28.0% from HKD 9,827 million in the same period of 2021[60] - Total comprehensive income for the nine months ended September 30, 2022, was HKD 6,767 million, down from HKD 9,902 million in the same period of 2021[60] Trading Activity - The average daily trading value of equity securities on the exchange was HKD 84.0 billion, down 43% from HKD 147.7 billion in Q3 2021[5] - The average daily trading value of the Stock Connect was RMB 96.7 billion, down 31% from RMB 139.3 billion in Q3 2021[5] - Average daily turnover of equity securities products on the exchange was HKD 107.4 billion, down 33% from HKD 159.6 billion in the first three quarters of 2021[7] - The average daily turnover of the Stock Connect northbound trading decreased by 18% to RMB 101.3 billion from RMB 123.2 billion in the previous year[7] - The average daily trading amount for the Stock Connect in Q3 2022 was RMB 1,013 billion for northbound and RMB 291 billion for southbound trading, down from RMB 1,159 billion and RMB 66.4 billion in Q3 2021[14] - The average daily trading volume of derivative contracts increased by 26%, reflecting heightened hedging demand amid market volatility[8] - The average daily trading volume of stock options contracts was 570,000 in the first three quarters of 2022, down from 681,000 in the same period of 2021[21] Investment Activities - The company reported a net loss of HKD 46 million from investment activities, compared to a gain of HKD 32 million in Q3 2021[4] - The net investment loss from company funds was HKD 424 million, compared to a gain of HKD 460 million in the first three quarters of 2021, reflecting a fair value loss of HKD 659 million in external portfolios[6] - The total investment loss for the first three quarters of 2022 was HKD 424 million, compared to a net gain of HKD 460 million in the same period of 2021[44] - The external portfolio recorded a fair value loss of HKD 659 million, compared to a fair value gain of HKD 298 million in the same period of 2021, reflecting a significant decline in asset prices due to inflation and geopolitical tensions[46] Operating Expenses - The company’s operating expenses increased by 17% to HKD 1.291 billion compared to HKD 1.108 billion in Q3 2021[4] - Operating expenses increased by 13% to HKD 3,747 million, driven by higher employee and professional fees, indicating continued investment in talent and strategic initiatives[6] - The total operating expenses increased by 25% in the first three quarters of 2022 compared to the same period in 2021, driven by strategic hiring and rising recruitment costs[49] - Operating expenses increased to HKD 3,747 million for the nine months ended September 30, 2022, compared to HKD 3,329 million in the same period of 2021, an increase of 12.5%[59] Market Activity and Initiatives - The number of IPO applications being processed as of September 30, 2022, was 144, more than double the amount in the first half of 2022[3] - The company launched seven new ETPs, including the first green bond ETF[3] - The bond market in Hong Kong saw 317 bonds listed in the first three quarters of 2022, with total fundraising exceeding HKD 672 billion[16] - The introduction of qualified ETFs into the Stock Connect on July 4, 2022, aims to enhance the product variety and facilitate cross-market investments[14] - In Q3 2022, the Hong Kong Stock Exchange (HKEX) established the Hong Kong International Carbon Market Committee to promote carbon neutrality goals and develop a green financial ecosystem[17] - The company is actively promoting sustainable and green finance through initiatives like the Sustainable and Green Exchange (STAGE) and has established the Hong Kong International Carbon Market Committee to explore regional carbon market opportunities[51] Financial Position - Total assets as of September 30, 2022, amounted to HKD 410,799 million, an increase from HKD 399,304 million as of December 31, 2021, representing a growth of approximately 2.5%[61] - Total liabilities rose to HKD 363,526 million from HKD 349,394 million, indicating an increase of about 4.0%[61] - The company's equity attributable to shareholders decreased to HKD 47,001 million from HKD 49,626 million, a decline of approximately 5.3%[61] - The total liabilities to equity ratio as of September 30, 2022, was approximately 7.7, compared to 7.0 as of December 31, 2021, indicating increased leverage[61] Miscellaneous - The charity fund of the company donated a total of HKD 119 million to various charitable activities in the first three quarters of 2022[51] - The company plans to further redeem HKD 200 million in the fourth quarter of 2022 to manage market volatility and support internal investments[48] - The company does not plan to declare a dividend for Q3 2022, compared to zero declared in Q3 2021[58]

Financial Performance - In the first half of 2022, the company's revenue and other income amounted to HKD 8.937 billion, a decrease of 18% compared to the record high in the first half of 2021[7]. - The net investment loss for the company was HKD 378 million, contrasting with a gain of HKD 428 million in the first half of 2021, primarily due to a net fair value loss of HKD 511 million from externally managed investment funds[7]. - The company's EBITDA profit margin was 72%, down 7% from the record high in the first half of 2021[8]. - Shareholders' profit attributable to the company was HKD 4.836 billion, a decrease of 27% compared to the record high in the first half of 2021[8]. - Total revenue for the first half of 2022 was HKD 9,278 million, a decrease of 11% compared to HKD 10,407 million in the same period of 2021[10]. - EBITDA for the first half of 2022 was HKD 6,394 million, down 26% from HKD 8,607 million in the first half of 2021[10]. - Shareholder profit attributable to the company for the first half of 2022 was HKD 4,836 million, a decline of 27% from HKD 6,610 million in the previous year[10]. - The company reported a decrease in trading fees and trading system usage fees to HKD 3,553 million, down 13.8% from HKD 4,124 million[110]. - The company reported a net profit of HKD 6,610 million for the period, compared to HKD 6,589 million in the previous year, marking a growth of 0.3%[115]. Trading Activity - The average daily trading amount decreased, leading to a reduction in trading and settlement fees, with core business revenue down 11% compared to the first half of 2021[7]. - Average daily trading value for the Hong Kong Stock Exchange was HKD 138.3 billion, a decrease of 27% compared to HKD 188.2 billion in the same period of 2021[11]. - The average daily trading value for the Stock Connect (Shanghai and Shenzhen) was RMB 103.9 billion, down 9% from RMB 114.4 billion in the previous year[11]. - The average daily trading volume of derivative products increased by 35%, reaching 705,000 contracts compared to 522,000 contracts in the previous year[11]. - The average daily trading value of ETFs increased by 59%, reaching HKD 97 billion[18]. - The average daily trading volume of the Hang Seng Tech Index futures reached 64,928 contracts in the first half of 2022, more than a sevenfold increase compared to the same period in 2021[37]. - The average daily trading volume of MSCI China A50 Connect (USD) index futures was 19,863 contracts, a 72% increase compared to the average daily trading volume from the launch date until the end of 2021[37]. Operating Expenses - Operating expenses increased by 11% compared to the first half of 2021, driven by higher employee and professional fees[8]. - The company reported a 14% increase in operating expenses, attributed to rising employee costs due to talent investment and recruitment[12]. - Operating expenses increased by 16% in the first half of 2022, reflecting higher costs allocated to the listing department[27]. - The company incurred a net cash outflow from investing activities of HKD 2,141 million, compared to a net inflow of HKD 94 million in the previous year[116]. - Employee costs for the six months ended June 30, 2022, totaled HKD 1,667 million, an increase from HKD 1,495 million in 2021, marking an 11.5% rise[128]. New Products and Innovations - The company launched several new products, including the first Metaverse-themed ETF and the first pure Hong Kong stock ESG ETF in early 2022[6]. - The company is focused on long-term business development and innovation, including the introduction of a new SPAC listing system and market optimization measures[3]. - The introduction of qualified ETFs into the Stock Connect program on July 4, 2022, marks a significant milestone in enhancing connectivity between Hong Kong and mainland China capital markets[19]. - New product launches included the first blockchain ETF, first metaverse-themed ETF, first carbon futures ETF, and first pure Hong Kong stock ESG ETF[19]. - The group is enhancing its technology capabilities to transition from an infrastructure-based company to a more customer-centric organization[20]. Market Conditions and Strategic Focus - The company continues to focus on building a leading market despite the challenging global financial environment[18]. - The company is committed to sustainable development and has partnered with the Guangzhou Carbon Emission Trading Center to explore opportunities in the carbon finance sector[19]. - The company aims to strengthen its position in the Greater Bay Area, leveraging cross-border trading initiatives to boost market participation[171]. - HKEX is committed to sustainability, with plans to introduce green financial products to support environmental initiatives[171]. Shareholder Information - The board declared an interim dividend of HKD 3.45 per share, payable in cash[19]. - The interim dividend declared on June 30, 2022, was HKD 3.45 per share, compared to HKD 4.69 per share in 2021, a reduction of 26.4%[133]. - The company has not purchased, sold, or redeemed any shares other than those acquired under the share award plan during the reporting period[98]. Financial Position and Assets - Total financial assets increased by 35% to HKD 463.68 billion as of June 30, 2022, compared to HKD 343.81 billion at the end of 2021[68]. - The company's cash and cash equivalents rose by 16% to HKD 209.50 billion as of June 30, 2022, compared to HKD 181.36 billion at the end of 2021[68]. - The total number of shares held for the share award plan as of June 30, 2022, was 2,299 thousand shares, with a corresponding capital of 861 million HKD[19]. - The total assets increased to HKD 513,046 million as of June 30, 2022, up from HKD 399,304 million at the end of 2021, representing a growth of 28.6%[112]. Regulatory and Compliance - The audit committee, along with external auditors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[79]. - The company has adopted the Standard of Conduct as its code of ethics for directors in securities trading[89]. - HKEX has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per B.2.2[88].

2022 Q1 Results Analyst Presentation Nicolas Aguzin Chief Executive Officer, HKEX Group Vanessa Lau Group Chief Financial Officer, HKEX Group 27 April 2022 Q3 2021 Key Highlights Disclaimer The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or service of any kind. This document is solely intended for ...

Financial Data and Key Metrics Changes - In Q1 2022, revenues were HKD 4.7 billion, down 1% from Q4 2021 and 21% lower year-on-year [6][12] - Profit remained broadly flat at HKD 2.7 billion compared to Q4 2021 but was down 31% year-on-year [6][12] - Core business revenue, excluding net investment income, was HKD 4.8 billion, up 7% against Q4 but down 16% versus the record Q1 last year [11][12] - EBITDA was HKD 3.5 billion, down 28% year-on-year [14] Business Line Data and Key Metrics Changes - Cash and derivatives business showed resilience despite weak market sentiment, with stock Connect ADT rising 27% from the previous quarter [6][7] - Bond Connect ADT reached a record quarterly high [7] - Trading volumes on the Hong Kong Futures Exchange and the LME saw solid growth, particularly in newer products like Hang Seng TECH Index Futures [13] Market Data and Key Metrics Changes - Hong Kong's IPO market was impacted by the macro environment, but the pipeline remained strong with over 150 active applications, including 10 SPAC applications [8][25] - Average daily trading (ADT) in cash markets rose 16% from the preceding quarter [23] Company Strategy and Development Direction - The company aims to build the marketplace of the future, focusing on three strategic imperatives: connecting China and the world, connecting capital with opportunities, and connecting today with tomorrow [29][30][32] - New initiatives include launching thematic ETFs and modernizing operations and infrastructure [26][28] - The company is committed to sustainability, with an increase in green and ESG-related bond listings [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing market volatility and geopolitical fragility but expressed confidence in the company's strong fundamentals and clear strategy [22][35] - The gradual relaxation of pandemic-related restrictions globally is seen as a cautious optimism for future performance [35] Other Important Information - The company is focused on enhancing its product ecosystem and exploring new opportunities in collaboration with Mainland partners [41][75] - The company plans to continue investing in technology, talent, and risk management to support its strategic initiatives [20][36] Q&A Session Summary Question: Insights from the trip to Mainland China and product ecosystem priorities - Management emphasized the importance of Hong Kong as a connector to global markets and discussed ongoing initiatives like ETF Connect [42][43] Question: Sustainability of margin funds AUM increase - Management indicated that the increase in margin funds AUM is linked to trading volumes and volatility, with rising interest rates expected to benefit investment income [40][46] Question: Economics behind SPAC listings - Management explained that SPACs provide an alternative market access method, with listing fees and trading activity expected to increase post-de-SPAC transaction [52][55] Question: IPO pipeline outlook - Management noted the IPO pipeline has grown to around 180 applications, with varying timelines for companies to access the market [60][62] Question: Earnings volatility reduction plans - Management acknowledged the need for stability in revenue streams and highlighted the success of new derivative products in generating activity [80]

Financial Performance - In Q1 2022, the company's revenue and other income amounted to HKD 4.69 billion, a decrease of 21% compared to Q1 2021's record high of HKD 5.96 billion[6]. - The company reported a net investment loss of HKD 104 million in Q1 2022, compared to a gain of HKD 219 million in Q1 2021, reflecting a significant decline in global stock and fixed income market valuations[7]. - The company’s net profit attributable to shareholders was HKD 2.67 billion, a decrease of 31% compared to HKD 3.84 billion in Q1 2021[7]. - Total revenue and other income for Q1 2022 was HKD 4.69 billion, a decrease of 21% compared to Q1 2021, primarily due to reduced trading and settlement fees[11]. - The stock trading segment reported a revenue decline of 24% and EBITDA decline of 27% compared to Q1 2021[13]. - Revenue decreased by 9% to 978 million compared to Q1 2021, with EBITDA margin down 12% to 79%[18]. - The operating profit for Q1 2022 was HKD 3,119 million, down 30.5% from HKD 4,482 million in Q1 2021[51]. - Basic earnings per share for Q1 2022 were HKD 2.11, compared to HKD 3.03 in Q1 2021, reflecting a decline of 30.4%[51]. - The total comprehensive income for the three months ended March 31, 2022, was HKD 2,617 million, compared to HKD 3,872 million for the same period in 2021, representing a decrease of approximately 32.4%[52]. Trading Activity - The average daily trading amount for equity securities products was HKD 126 billion, down 36% from HKD 198 billion in the same period last year[9]. - The average daily trading value was HKD 146.5 billion, down 35% from Q1 2021 but up 16% from Q4 2021[11]. - The average daily trading amount for the Stock Connect program was RMB 105.9 billion, a decrease of 16% from RMB 126.8 billion in the previous year[9]. - The average daily trading amount in the Hong Kong stock market increased by 16% to HKD 146.5 billion compared to Q4 2021, but decreased by 35% compared to Q1 2021[14]. - The average daily trading volume of derivative contracts in Q1 2022 was 1,339,149 contracts, a 5% decrease year-on-year[19]. - The average daily trading volume of the Hang Seng Tech Index futures reached 52,944 contracts in Q1 2022, over 8 times the figure from Q1 2021[24]. - The average daily trading volume of currency derivatives, specifically USD/CNY futures, increased by 33% to 9,349 contracts in Q1 2022[24]. - The average daily turnover of structured products in Q1 2022 was HKD 20.5 billion, a decrease of 22% compared to Q1 2021, while the number of new listed structured products was 15,573, down 12%[25]. Market Developments - The number of new IPO applications in Hong Kong reached over 150 as of March 31, 2022, including 10 SPAC applications[5]. - The company launched several new products in Q1 2022, including the first metaverse-themed ETF and the first carbon futures ETF[5]. - The total fundraising amount from newly listed companies in Hong Kong in Q1 2022 was HKD 14.9 billion, a decrease of 89% compared to Q1 2021[14]. - The company aims to strengthen Hong Kong's position as an international financial center and enhance market diversity[11]. - The Hong Kong Stock Exchange plans to launch a new investor relations network platform, IR Connect, in Q3 2022 to enhance communication between issuers and global investors[15]. - The Hong Kong Stock Exchange continues to explore opportunities in digital finance and sustainable development, including partnerships in carbon finance and green bond projects[16]. Operating Expenses - Operating expenses increased by 7% year-on-year to HKD 1.18 billion, driven by higher employee and promotional costs[7]. - Operating expenses rose by 7% compared to Q1 2021, attributed to increased employee costs and cash incentives for new product promotions[11]. - Operating expenses increased by 6% due to cash incentives related to new products[18]. - The group's operating expenses for Q1 2022 totaled HKD 1,178 million, an increase from HKD 1,102 million in Q1 2021[51]. Investment and Assets - The investment in collective investment plans as of March 31, 2022, was 86 billion, a decrease of 2% from December 31, 2021[43]. - The group's capital expenditure for Q1 2022 was HKD 190 million, down from HKD 331 million in Q1 2021, primarily related to the development and enhancement of various trading and settlement systems[48]. - The group's total assets pledged as non-cash collateral amounted to USD 3.499 billion (HKD 274.02 billion) as of March 31, 2022, significantly up from USD 971 million (HKD 75.70 billion) on December 31, 2021[49]. - Cash and cash equivalents increased to HKD 264,525 million as of March 31, 2022, up from HKD 181,361 million as of December 31, 2021, reflecting a growth of approximately 46%[53]. - Total assets reached HKD 622,723 million as of March 31, 2022, compared to HKD 399,304 million as of December 31, 2021, indicating an increase of approximately 56%[53]. - Total liabilities amounted to HKD 575,416 million as of March 31, 2022, up from HKD 349,394 million as of December 31, 2021, which is an increase of approximately 64.7%[53]. Regulatory and Strategic Initiatives - The group has committed to promoting sustainable and green finance through the STAGE platform, enhancing communication with stakeholders[46]. - The group continues to monitor global geopolitical risks and their potential impacts on business continuity and regulatory assessments[46]. - The company adopted new/revised HKFRSs in 2022, which did not have any financial impact on the group[54]. - The estimated useful life of certain computer hardware and software was changed from three years to three to five years, resulting in a reduction of depreciation expense by HKD 8 million for the first quarter of 2022[54].

Financial Performance - In 2021, Hong Kong Exchanges and Clearing Limited (HKEX) achieved record high revenue and profit despite challenging macroeconomic conditions and ongoing pandemic impacts [4]. - Revenue and other income for 2021 reached HKD 20,950 million, an increase of 9% compared to 2020 [10]. - Main business revenue rose by 10% to HKD 20,103 million, driven by record average daily trading volumes [10]. - EBITDA for 2021 was HKD 16,269 million, reflecting an 11% increase from 2020, with an EBITDA margin of 78% [10]. - Shareholders' profit attributable increased by 9% to HKD 12,535 million, marking a new high [10]. - The total revenue and other income for the group reached HKD 21 billion in 2021, an increase of 9% compared to 2020, leading to a record profit attributable to shareholders of HKD 12.5 billion, also up by 9% [19]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth [46]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth [51]. - Total revenue and other income amounted to HKD 3,436 million in 2021, reflecting a 6% increase from HKD 3,241 million in 2020 [96]. - Total revenue for 2021 reached 20,950 million, an increase of 9.2% from 19,190 million in 2020 [185]. Trading Volume and Market Activity - The trading volume for the cash market, Stock Connect, and Bond Connect reached new highs, offsetting the impact of low interest rates on investment income [4]. - The average daily trading volume in the cash market increased significantly, contributing to overall revenue growth [4]. - Average daily turnover of equity securities on the exchange reached HKD 146.6 billion, a 32% increase from 2020 [11]. - The average daily turnover of the Stock Connect program reached HKD 120.1 billion, up 32% year-on-year [11]. - In 2021, the average daily trading volume reached HKD 166.7 billion, a 29% increase from 2020, setting a new record [28]. - The average daily trading volume for bond connect Northbound reached RMB 26.6 billion, a 34% increase from 2020 [28]. - The average daily trading volume of Hong Kong stock ETFs nearly doubled from HKD 2.8 billion in 2020 to HKD 5.4 billion in 2021 [37]. - The average daily trading volume of ETPs (including ETFs and leveraged and inverse products) increased by 20% to HKD 7.7 billion in 2021, compared to HKD 6.4 billion in 2020 [37]. - The average daily trading volume of derivatives contracts increased by 26% in 2021 compared to 2020 [68]. - The average daily trading amount for stock products reached 166.7 billion HKD in 2021, a 29% increase compared to 2020 [77]. Product Development and Innovation - HKEX received numerous listing applications and launched new listing regimes for Special Purpose Acquisition Companies (SPACs) and overseas issuers, enhancing its product offerings [4]. - HKEX introduced various new products, including Hang Seng Tech Index options and new cash-settled futures contracts on LME, to diversify its offerings [6]. - The company launched the first A-share derivative product, the MSCI China A50 Connect Index Futures, enhancing product offerings in the market [18]. - The company plans to introduce non-HKD denominated futures and options trading and settlement services during public holidays in 2022 [22]. - The launch of the MSCI China A50 Connect Index Futures in October 2021 expanded the Chinese A-share ecosystem in Hong Kong, with significant market response on its first trading day [32]. - The company continues to focus on market connectivity and product innovation to maintain its competitive position in the global capital markets [18]. - The Hong Kong Stock Exchange has expanded its product ecosystem, including the introduction of new MSCI China A50 index futures and small USD/CNY futures contracts [33]. - The launch of the new FINI platform in Q4 2022 is expected to simplify and digitize the IPO settlement process, improving the situation of large amounts of pre-paid funds being frozen during subscription periods [38]. Sustainability and Corporate Social Responsibility - The company is committed to achieving net-zero emissions by 2050 and has joined the Glasgow Financial Alliance for Net Zero [8]. - HKEX launched the ESG Academy and various community projects to enhance its corporate social responsibility initiatives [8]. - The company joined the Glasgow Financial Alliance for Net Zero and the Net Zero Financial Service Providers Alliance, committing to sustainable development goals [21]. - The Hong Kong Stock Exchange Charity Fund raised HKD 139 million in 2021 to support various community projects and charities [23]. - The company published the "Net Zero Emissions Guide" to assist issuers and other businesses in their journey towards net-zero emissions [38]. - The company is committed to expanding its sustainable finance ecosystem, with continuous growth in the number of GSS bonds listed [38]. - The total issuance of green/ESG-related bonds reached HKD 282.6 billion in 2021, compared to HKD 66.7 billion in 2020 [81]. - The Sustainable and Green Exchange (STAGE) had 87 products focused on sustainability by December 31, 2021, reflecting strong market support since its establishment [82]. Governance and Management - The board consists of 13 directors, with 12 being independent directors and 4 being female, aiming for gender equality [188]. - The board and committees held a total of 48 meetings in 2021, demonstrating active governance practices [188]. - The company adhered to all provisions of the Corporate Governance Code effective during 2021, with specific exceptions noted [189]. - The board's composition includes a diverse range of skills and experiences, enhancing its effectiveness and efficiency [195]. - The company emphasizes the importance of good governance and effective board performance for overall corporate health [198]. - The establishment of the International Advisory Committee and the China Business Advisory Committee aims to enhance the board's insights on global and Chinese financial markets [199]. - An internal review of the board's performance was conducted in 2021, with results indicating effective operation and good governance across various committees [200]. Future Outlook and Strategic Initiatives - The company is focused on expanding its role as a "super connector" in the rapidly evolving global capital markets [4]. - The company plans to leverage its position as a "super connector" to participate in technology and industry development opportunities in the future [66]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the year [46]. - The company is exploring potential acquisitions to enhance its product offerings, with a budget of $500 million allocated for this purpose [48]. - A new strategic partnership has been established, expected to generate $200 million in additional revenue streams [49]. - The company has set a future outlook with a revenue guidance of $6 billion for the upcoming fiscal year, indicating a growth of 20% [55]. - The company plans to increase its workforce by 10% to support growth initiatives and new projects [55]. - The management team emphasized the importance of risk management, with a focus on mitigating potential market volatility impacts [61].

2020 Annual Results Analyst Presentation Calvin Tai Interim Chief Executive, HKEX Group Romnesh Lamba Co-President, HKEX Group Vanessa Lau Group Chief Financial Officer, HKEX Group 24 February 2021 Disclaimer The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or service of any kind. This document is ...