Ge Long Hui·2026-03-03 05:56Core Viewpoint - Hong Kong Stock Exchange reported strong financial performance for 2025, with revenue and net profit showing significant year-on-year growth, driven by increased trading activity and listing fees. Financial Performance - In 2025, the company achieved revenue and other income of HKD 29.161 billion, a year-on-year increase of 30.3% [1] - The net profit attributable to shareholders reached HKD 17.754 billion, reflecting a year-on-year growth of 36.0% [1] Revenue Breakdown - Revenue from trading and trading system usage fees increased by 43.73%, while listing fees rose by 20.55% [1] - Settlement and clearing fees grew by 49.29%, and custody and agency service fees increased by 31.15% [1] - Market data fees and investment income saw smaller increases of 7.83% and 3.73%, respectively [1] - The growth in trading and settlement fees was attributed to heightened trading activity in the cash, derivatives, and commodities segments [1] Trading Activity - The average daily turnover of stock securities on the exchange increased by 92.9% year-on-year [2] - The average daily turnover for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect rose by 41.5% and 151.2%, respectively [1] - Derivatives trading fees grew by 10.3%, driven by increased activity in stock options and warrants [1] - The average daily trading volume of LME metal contracts increased by 7.7%, contributing to a 10.6% rise in commodity trading fees [1] Listing Fees - Listing fees from the cash market increased by 8.6%, with 119 new companies listed, raising funds that grew by 236.1% year-on-year [2] - Derivatives market listing fees rose by 38.4% to HKD 825 million, primarily due to a significant increase in new derivative warrants and structured products [2] Investment Income - In Q4 2025, the company reported net investment income of HKD 1.218 billion, reflecting a quarter-on-quarter increase of 2% and a year-on-year increase of 20% [2] - The average investment amount increased by 20.08% year-on-year, while the annualized investment return rate decreased slightly to 1.32% [2] - The company's total investment income reached HKD 1.870 billion, a year-on-year increase of 6.98% [2] Future Outlook - The liquidity in the Hong Kong stock market is expected to continue rising due to a series of connectivity policies, which may enhance overall market activity and valuations [3] - Projections for 2026-2028 indicate revenues of HKD 32.614 billion, HKD 34.403 billion, and HKD 36.326 billion, with net profits of HKD 20.353 billion, HKD 21.424 billion, and HKD 22.593 billion, respectively [3] - Corresponding PE valuations are expected to be 25.88, 24.58, and 23.31 times [3]