HKEX(HK:00388) Ge Long Hui·2025-10-22 02:45Core Viewpoint - The report from CICC indicates that Hong Kong Exchanges and Clearing Limited (HKEX) is expected to announce a 49% year-on-year increase in third-quarter profit, reaching HKD 4.68 billion, and a 5% quarter-on-quarter increase [1] Financial Performance - Third-quarter revenue is projected to grow by 40% year-on-year and 4% quarter-on-quarter to HKD 7.53 billion [1] - Excluding investment income, the main fee income is expected to rise by 57% year-on-year and 18% quarter-on-quarter to HKD 6.51 billion [1] - For the first three quarters, total revenue and profit are anticipated to increase by 35% and 42% year-on-year, reaching HKD 21.61 billion and HKD 13.2 billion, respectively [1] Market Activity - Since October, the average daily trading volume in the Hong Kong stock market has reached HKD 288 billion, with increased market speculation driving high trading activity [1] - The high volatility environment is expected to support the popularity of derivatives trading, reinforcing the profit fundamentals of HKEX [1] Future Outlook - CICC's strategy team predicts a faster pace of interest rate cuts by the Federal Reserve in the fourth quarter, which may support liquidity in the Hong Kong stock market [1] - Given the active market trading volume, CICC has raised its profit forecast for HKEX in 2025 by 3% to HKD 17.1 billion, while maintaining the 2026 forecast largely unchanged [1] - The firm maintains an "outperform" rating for HKEX with a target price of HKD 500 [1]