Zhi Tong Cai Jing·2026-02-27 06:17Group 1 - The core viewpoint of the report indicates that Hong Kong Exchanges and Clearing Limited (HKEX) reported a net profit of HKD 4.3 billion for Q4 2025, representing a quarterly decline of 12% but a year-on-year increase of 15%, exceeding JPMorgan's forecast by 19% [1] - For the fiscal year 2025, the profit is projected at HKD 17.8 billion, reflecting a year-on-year growth of 36%, which is 2% higher than market expectations [1] - The strong performance is attributed to better-than-expected revenue, particularly in trading and settlement fees, despite a seasonal decline in trading volume, with average daily turnover in cash equities down 21% quarter-on-quarter [1] Group 2 - The net investment income was robust, reaching HKD 1.2 billion, a quarterly increase of 20%, contributing to the profit exceeding expectations [1] - Even excluding the non-recurring income of HKD 163 million from private equity investments, the pre-tax profit was HKD 5 billion, still showing a year-on-year growth of 16% and surpassing JPMorgan's forecast by 15% [1] - The company maintained cost control, with total expenses rising by 7% year-on-year [1] Group 3 - Despite weak trading volumes in Q4, the earnings performance remained strong, and the robust net investment income could lead to upward revisions in earnings forecasts for FY 2026 [2] - Trading volumes have rebounded since the seasonal weakness in December 2025, with an average daily turnover of approximately HKD 260 billion year-to-date [2] - As HKEX enters FY 2026, there are over 400 active initial public offering applications, a significant increase from 297 in the previous quarter [2]