Ge Long Hui·2025-08-21 19:30Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong performance in H1 2025, with total revenue of HKD 14.076 billion (YoY +33%) and net profit attributable to shareholders of HKD 8.519 billion (YoY +39%) [1] Revenue Breakdown - Trading fees and system usage fees increased by 49%, settlement and clearing fees by 48%, listing fees by 13%, custody and agency services fees by 23%, market data fees by 6%, and net investment income by 14% [1] - Revenue from the cash market, equity securities and financial derivatives, commodities, data and connectivity, and corporate projects grew by 62%, 15%, 8%, 5%, and 28% respectively [1] Quarterly Performance - In Q2 2025, total revenue reached HKD 7.219 billion (YoY +33%, QoQ +5%), and net profit attributable to shareholders was HKD 4.442 billion (YoY +41%, QoQ +9%), both setting new quarterly records [1] Market Activity - The Hang Seng Index saw a cumulative increase of 20% in H1 2025, with the average daily turnover in the cash market reaching HKD 240.2 billion, more than double that of H1 2024 [2] - The average daily turnover for the Shanghai-Hong Kong Stock Connect was HKD 171.3 billion (YoY +32%), while the Hong Kong Stock Connect averaged HKD 111 billion, nearly three times that of H1 2024 [2] IPO Activity - In H1 2025, 44 companies went public in Hong Kong, raising HKD 109.4 billion, which is over eight times the amount raised in H1 2024, driven by an increase in listings from mainland and international issuers [2] Derivatives Market - The derivatives market maintained an upward trend, with average daily turnover for structured products reaching HKD 17.4 billion (YoY +72%) and trading fees increasing by 64% [2] - Average daily contracts traded for derivatives reached 1.7 million (YoY +11%), with a decrease in futures contracts but an increase in stock options [2] Commodity Division - The LME trading and settlement fees grew, with average daily trading volume for metal contracts at 715,000 lots (YoY +3%) and trading fees of HKD 766 million (YoY +6%) [3] Investment Income - Investment income increased due to a rise in the average amount of self-owned funds to HKD 36.4 billion (YoY +8%) and an annualized investment return of 5.73% (YoY +0.40 percentage points) [3] - Margin requirements increased, leading to an average amount of margin and clearing funds of HKD 227.2 billion (YoY +15%) [3] Future Outlook - HKEX is expected to maintain high profit growth in 2025, with revised net profit forecasts of HKD 18.8 billion and HKD 20 billion for 2025 and 2026 respectively, reflecting YoY increases of 44% and 6% [4] - The anticipated PE ratios for 2025, 2026, and 2027 are 29.7, 27.9, and 26.5 times respectively, maintaining a "recommended" rating [4]