Zhi Tong Cai Jing·2025-11-07 06:18Core Viewpoint - The report from Everbright Securities highlights Hong Kong Exchanges and Clearing Limited (HKEX) as a rare investment target with both offensive and defensive strengths, maintaining an "overweight" rating. The report notes a significant increase in trading activity in the Hong Kong stock market since September 2024, with the company's financial performance reaching historical highs in the first three quarters of the year. The positive market sentiment is expected to continue into the fourth quarter, supported by policy initiatives encouraging more mainland companies to list in Hong Kong and the return of Chinese concept stocks [1]. Financial Performance - In the first three quarters of 2025, HKEX achieved total revenue of HKD 21.85 billion, a year-on-year increase of 36.6%, with growth accelerating by 4.1 percentage points compared to the first half of the year. The third quarter saw revenue growth of 44.7% year-on-year and 7.7% quarter-on-quarter. The net profit attributable to shareholders for the same period was HKD 13.42 billion, up 44.8% year-on-year, with a 5.7 percentage point increase compared to the first half of the year. The third quarter's net profit growth was 55.8% year-on-year and 10.3% quarter-on-quarter [2]. Revenue Breakdown - Trading fees, trading system usage fees, and settlement and clearing fees accounted for HKD 13.1 billion (60.0% of total revenue), reflecting a year-on-year increase of 60.5%. The third quarter saw a year-on-year increase of 83.6% and a quarter-on-quarter increase of 28.2%. The average daily trading volume increased by 126.3% year-on-year to HKD 256.4 billion, with the third quarter showing a year-on-year increase of 141.1% and a quarter-on-quarter increase of 20.5% [2][3]. Investment Income - The net investment income for the first three quarters was HKD 3.89 billion (17.8% of total revenue), a year-on-year increase of 4.4%, with growth slowing by 9.6 percentage points compared to the first half of the year. The net investment income from the company's own funds was HKD 1.3 billion, down 7.8% year-on-year, with an annualized net return of 4.7%, a decrease of 0.8 percentage points. The income from margin and clearing house fund investments was HKD 2.6 billion, up 11.9% year-on-year, with an annualized net return of 1.5%, down 0.2 percentage points [3]. Market Activity - The average daily trading volume for stock securities on the exchange reached HKD 238.7 billion in the first three quarters, a record high, with a year-on-year increase of 132.4%. The third quarter saw a year-on-year increase of 149.9% and a quarter-on-quarter increase of 21.6%. The average daily trading volume in the derivatives market was HKD 17.7 billion, up 67.0% year-on-year, with the third quarter showing a year-on-year increase of 59.5% and a quarter-on-quarter increase of 6.3% [4]. New Listings - In the first three quarters of 2025, the Hong Kong stock market saw a strong increase in new listings, with 69 new companies listed, a year-on-year increase of 53.3%. The total funds raised amounted to HKD 188.3 billion, a year-on-year increase of 238.7%. Notably, Zijin Mining's listing in the third quarter raised HKD 28.7 billion, making it the second-largest new listing globally this year. As of the end of the third quarter, there were 297 listing applications pending, representing a 253.6% increase compared to the end of the previous year [5].