HKEX(HK:00388) Zhong Guo Zheng Quan Bao·2025-09-25 00:43Core Insights - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, moving from a stance of avoidance to one of necessity, driven by China's policy stability and technological advancements [1][3] Group 1: Investment Trends - HKEX's CEO highlighted that global diversification needs and the attractiveness of Chinese assets are leading foreign capital to transition from "cannot invest" to "cannot miss investing" in China [1][3] - In the first half of the year, HKEX reported a new stock financing amount of HKD 1,094 billion, reclaiming the top position among global exchanges, with a daily average trading volume of HKD 2,402 billion, a year-on-year increase of 118% [2] - Foreign capital is significantly returning to the Hong Kong market, with foreign subscriptions accounting for 70-80% of certain IPOs, indicating a robust demand from long-term investors from regions such as Europe, the Middle East, and Southeast Asia [2][3] Group 2: Market Dynamics - The shift in foreign investment logic is attributed to geopolitical tensions and a reassessment of asset allocation strategies, leading to a search for new investment opportunities in Hong Kong's leading and high-potential companies [2][3] - The average daily trading volume of Hong Kong stocks is projected to rise from approximately HKD 1,000 billion in 2023 to HKD 1,300 billion in 2024, further increasing to HKD 2,402 billion in the first half of 2025, with foreign trading volume accounting for about 70% [3] Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet diverse financing needs, with recent innovations such as the introduction of Chapter 18A and 18C rules allowing biotech and specialized technology companies to list without prior revenue [4][5] - The successful implementation of these rules has led to increased market recognition and a growing number of applications from companies seeking to list under these provisions [5] Group 4: Market Connectivity - The rise in IPO activity is complemented by a positive interaction with the A-share market, with "A+H" listings creating a beneficial cycle between the two markets [6] - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete globally, addressing current gaps in its market [6][7] - Future plans include expanding the range of products available through the Stock Connect program, including ETFs and bonds, to facilitate greater access for international investors [6][7]