Ge Long Hui·2026-03-03 05:56Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong growth in revenue and profit for the year 2025, driven by high market activity and a favorable economic environment [1] Group 1: Financial Performance - HKEX achieved a total revenue of HKD 23.745 billion, representing a year-over-year increase of 37% [1] - The net profit attributable to shareholders reached HKD 17.754 billion, up 36% year-over-year [1] - The return on equity (ROE) for the year was 30.5%, an increase of 6.3 percentage points year-over-year [1] Group 2: Revenue Breakdown - Revenue from trading fees and trading system usage increased by 44%, while clearing and settlement fees rose by 49% [1] - Revenue from various segments showed diverse growth: cash equities up 58%, equity securities and derivatives up 18%, commodities up 13%, and market data fees up 8% [1] - The revenue from the cash equities segment was particularly strong, with daily average trading volume increasing by 93% to HKD 231.5 billion [2] Group 3: IPO Market and Trading Volume - The IPO market in Hong Kong was robust, with 119 IPOs raising HKD 645.9 billion, a 236% increase year-over-year [2] - Daily average trading volume for the Shanghai-Hong Kong Stock Connect was HKD 212.4 billion, up 42% year-over-year, while the Hong Kong Stock Connect averaged HKD 121.1 billion, up 151% [2] Group 4: Derivatives and Investment Income - The derivatives segment saw a daily average trading volume of HKD 18.3 billion, a 55% increase year-over-year, with trading fees rising by 48% [3] - Investment income for HKEX reached HKD 5.111 billion, a 4% increase year-over-year, driven by higher margins and increased fund sizes [4] Group 5: Future Outlook - HKEX is expected to maintain its position as a key player in the primary market, supported by the recovery of IPO activities from mainland companies [5] - Despite short-term fluctuations in the secondary market, the long-term outlook remains positive, with expectations of increased liquidity and market recovery [5] - Profit forecasts for 2026-2028 have been slightly adjusted, with projected net profits of HKD 19.1 billion, HKD 20 billion, and HKD 21 billion respectively, reflecting year-over-year growth [5]