Xin Lang Cai Jing·2026-02-27 06:19Group 1 - The core viewpoint of the report is that Hong Kong Exchanges and Clearing Limited (HKEX) reported a net profit of HKD 4.3 billion for Q4 2025, representing a 12% quarter-on-quarter decline but a 15% year-on-year increase, exceeding Morgan Stanley's forecast by 19% [1] - For the fiscal year 2025, the profit is projected at HKD 17.8 billion, a 36% year-on-year increase, which is 2% higher than market expectations [1] - The strong performance is attributed to better-than-expected revenue driven by 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 - Non-listed equity investment valuations contributed HKD 163 million in non-recurring income, and improved returns on company funds offset increased rebates to market participants, leading to a strong net investment income of HKD 1.2 billion, a 20% quarter-on-quarter increase [1] - Even excluding the HKD 163 million gain, the pre-tax profit was HKD 5 billion, still showing a 16% year-on-year increase and exceeding Morgan Stanley's forecast by 15% [1] - Cost control was in line with expectations, with total expenses rising by 7% year-on-year [1] Group 3 - Despite weak trading volumes in Q4, the earnings performance remains robust, and strong net investment income is a positive surprise that may 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, even accounting for the weaker Lunar New Year period [2] - As HKEX enters 2026, there are over 400 active initial public offering applications, a significant increase from 297 in the previous quarter [2]