Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The report highlights significant growth in trading fees and listing fees, driven by high market activity and low operational expenditure growth [1][2] - The company achieved a revenue of HKD 21.851 billion for the first three quarters of 2025, representing a year-on-year increase of 37%, with net profit rising by 45% to HKD 13.419 billion [1] - The report anticipates continued profitability growth, with projected net profits of HKD 17.786 billion, HKD 19.152 billion, and HKD 20.811 billion for 2025, 2026, and 2027 respectively [4] Revenue Breakdown - Trading and transaction fees, listing fees, settlement and clearing fees, and market data fees showed year-on-year growth rates of 57%, 17%, 66%, and 8% respectively, contributing to the overall revenue [1][2] - The average daily trading volume for equity securities increased by 132% year-on-year, leading to a 123% rise in trading fee income [2] - The number of new listings on the Hong Kong Stock Exchange increased by 24 to a total of 69, with IPO and refinancing amounts growing by 239% and 274% respectively [3] Profitability Forecast - The report projects earnings per share (EPS) of HKD 14.07, HKD 15.12, and HKD 16.40 for the years 2025, 2026, and 2027, with corresponding price-to-earnings (P/E) ratios of 30, 28, and 26 [4][8] - The return on equity (ROE) is expected to rise to 31.8% in 2025, indicating strong profitability [8]

Investment Rating - The report maintains a "Strong Buy" investment rating with a target price of 515.00 HKD, indicating a potential upside of 21% from the current price of 425.6 HKD [2][9]. Core Insights - The company reported record-high total revenue of 21.9 billion HKD in Q3 2025, representing a year-on-year increase of 37%. The net profit attributable to shareholders was 13.4 billion HKD, up 45% year-on-year, and EBITDA reached 17.2 billion HKD, reflecting a 48% increase year-on-year [6][9]. - The report highlights strong performance across various business segments, with significant growth in spot trading and derivatives, driven by increased international capital inflow into the Hong Kong market [6][9]. - The report projects continued growth in net profit for the years 2025 to 2027, with expected figures of 17.8 billion HKD, 19.9 billion HKD, and 21.3 billion HKD respectively, indicating year-on-year growth rates of 36%, 12%, and 7% [9]. Summary by Sections Financial Performance - Q3 2025 total revenue was 21.9 billion HKD, with a 37% year-on-year increase. Net profit was 13.4 billion HKD, up 45% year-on-year, and EBITDA was 17.2 billion HKD, reflecting a 48% increase year-on-year. The EBITDA margin improved to 79%, up 5 percentage points year-on-year [6][9]. - The revenue breakdown for Q3 2025 shows significant contributions from various segments: spot trading (11.1 billion HKD, +75% YoY), equity securities and derivatives (5.3 billion HKD, +17% YoY), and others [6][9]. Market Activity - The report notes that the Hong Kong IPO market remains robust, with 69 new listings in Q3 2025, raising 188.3 billion HKD, more than three times the amount raised in Q3 2024 [7][9]. - The average daily trading volume (ADT) for the Hong Kong Stock Exchange reached 238.7 billion HKD in Q3 2025, a 132% increase year-on-year, indicating heightened trading activity [6][9]. Investment Outlook - The report emphasizes the favorable macroeconomic environment, including easing US-China tensions and supportive national policies, which are expected to sustain investor interest in Hong Kong and Asian assets [9]. - The projected financials for the upcoming years indicate a strong growth trajectory, with total revenue expected to reach 29.3 billion HKD in 2025, a 31% increase from 2024 [8][9].

Investment Rating - The report maintains a "Buy" rating for the company [3][8] Core Insights - The company reported a total revenue of HKD 21.85 billion for the first nine months of 2025, representing a year-on-year increase of 37%. The main revenue reached HKD 20.44 billion, up 41% year-on-year, while net profit was HKD 13.42 billion, reflecting a 45% increase year-on-year [6][8] - The report highlights strong trading and settlement fee income driven by active market transactions, while investment income showed a temporary decline [2][8] - The report anticipates continued active trading in the Hong Kong stock market, supported by the return of quality Chinese assets and the extension of connectivity between mainland China and Hong Kong [8] Financial Data and Earnings Forecast - The company’s projected financials for 2023 to 2027 are as follows: - Revenue: HKD 20.52 billion (2023), HKD 22.37 billion (2024), HKD 28.27 billion (2025E), HKD 31.43 billion (2026E), HKD 32.44 billion (2027E) - Net profit: HKD 11.86 billion (2023), HKD 13.05 billion (2024), HKD 17.73 billion (2025E), HKD 19.76 billion (2026E), HKD 20.76 billion (2027E) - Earnings per share: HKD 9.36 (2023), HKD 10.29 (2024), HKD 13.98 (2025E), HKD 15.58 (2026E), HKD 16.37 (2027E) [7][9] - The report indicates a significant increase in trading fees and settlement fees, with trading fees reaching HKD 7.81 billion (39% of total revenue) and settlement fees at HKD 5.27 billion (26% of total revenue) for the first nine months of 2025 [8][9] Market Performance - The report notes that the Hong Kong stock market's IPO fundraising reached HKD 188.3 billion in the first nine months of 2025, which is more than three times the amount from the same period last year [8] - The average daily trading (ADT) for Hong Kong stocks was HKD 2.387 trillion, a year-on-year increase of 132%, with a record high of HKD 2.679 trillion in the third quarter of 2025 [8]

Group 1: Gold Investment Market - The new tax policy effective from November 1, 2025, exempts VAT on standard gold traded through specific exchanges until December 31, 2027, but imposes VAT on physical withdrawals or non-exchange sales, increasing the cost of investing in physical gold [1] - The wholesale price of gold bars has increased by 70 yuan per gram, rising from 900 yuan to 970 yuan, leading to a pause in procurement plans by some retailers [1] - Retail prices for investment gold bars remain below 1200 yuan per gram, with major brands like Chow Tai Fook and Lao Feng Xiang pricing their gold bars around 1170 yuan per gram [1] Group 2: Memory Storage Market - Prices for memory storage products have been rising since September, with DDR4 16G memory prices increasing from below 90 yuan to between 100 and 130 yuan within a month [2] - As of late October, DDR4 16G memory prices range from 350 to 520 yuan, while DDR5 16G prices reach around 600 yuan, indicating a significant price increase [2] - Industry experts predict a supply shortage in the memory market will persist into next year [2] Group 3: New Energy Storage - As of September 30, China's new energy storage capacity exceeded 100 million kilowatts, marking a growth of over 30 times compared to the end of the 13th Five-Year Plan [2] - The new energy storage capacity accounts for over 40% of the global total, with significant contributions from regions like North China and Northwest China [2] - The utilization hours for new energy storage in the first three quarters reached approximately 770 hours, an increase of about 120 hours year-on-year [2] Group 4: Luxury Goods Market - The luxury goods market in China has experienced a decline for six consecutive quarters, with major luxury brands reporting decreased revenues and profits [3] - Brands are seeking rent reductions and operational support from shopping malls due to the declining sales [3] - Consumer preferences are shifting towards experiences and emotional connections, indicating a transformation in luxury consumption patterns [3] Group 5: Hong Kong Stock Exchange - The Hong Kong Stock Exchange reported a net profit of 4.9 billion HKD for the third quarter, a year-on-year increase of 56% [4][5] - Total revenue and other income for the third quarter reached 77.8 billion HKD, up 45% year-on-year, exceeding market expectations [5] Group 6: Automotive Industry - Toyota's operating profit for the second fiscal quarter was 839.55 billion JPY, a decrease of 27% year-on-year, while net profit increased by 62% to 932.08 billion JPY [5] - The company expects global vehicle sales for the year to reach 11.3 million units, an increase from previous estimates [5] Group 7: Corporate Actions - Huazhong Technology announced a plan to change its stock name to "Huazhong Technology" without requiring shareholder approval [8] - Financial services firm Caida Securities received approval to issue bonds totaling up to 6 billion CNY to professional investors [11] - Jiyuan Technology signed a framework agreement with CATL for copper foil supply, establishing a long-term partnership [12]

Core Points - The Hang Seng Index fell by 16.99 points, a decrease of 0.07%, closing at 25,935.41 points [1] - The Hang Seng China Enterprises Index decreased by 9.97 points, closing at 9,163.24 points, down 0.11% [1] - The Hang Seng Tech Index dropped by 32.44 points, closing at 5,785.85 points, a decline of 0.56% [1] Blue Chip Stocks - Tencent Holdings remained unchanged, closing at 629 HKD [1] - Hong Kong Exchanges and Clearing fell by 0.47%, closing at 423.6 HKD [1] - China Mobile decreased by 0.06%, closing at 86.65 HKD [1] - HSBC Holdings increased by 0.19%, closing at 108.2 HKD [1] Local Hong Kong Stocks - Cheung Kong Holdings rose by 0.05%, closing at 39.52 HKD [1] - Sun Hung Kai Properties fell by 1.42%, closing at 96.85 HKD [1] - Henderson Land Development increased by 0.72%, closing at 28.04 HKD [1] Chinese Financial Stocks - Bank of China rose by 0.22%, closing at 4.53 HKD [1] - China Construction Bank decreased by 0.37%, closing at 8.02 HKD [1] - Industrial and Commercial Bank of China increased by 0.16%, closing at 6.25 HKD [1] - Ping An Insurance fell by 0.97%, closing at 56.25 HKD [1] - China Life Insurance remained unchanged, closing at 24.7 HKD [1] Oil and Petrochemical Stocks - Sinopec fell by 0.71%, closing at 4.2 HKD [1] - PetroChina increased by 0.36%, closing at 8.36 HKD [1] - CNOOC decreased by 0.29%, closing at 20.34 HKD [1]

Group 1 - The Hong Kong Stock Exchange (HKEX) announced the initiation of a tender process for the audit work for the fiscal year ending December 31, 2026 [1] - KPMG has been selected as the external auditor for the HKEX group for the fiscal year ending December 31, 2026, pending approval from shareholders at the 2026 annual general meeting [1] - PwC will continue as the auditor for the fiscal year 2025, with their term ending at the conclusion of the 2026 annual general meeting [1]

Core Insights - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first three quarters of 2025, with total revenue and other income reaching HKD 21.851 billion, a 37% increase from 2024, and shareholder profit rising 45% to HKD 13.419 billion [2][3] Financial Performance - Total revenue and other income for the first three quarters of 2025 was HKD 21.851 billion, up 37% from HKD 15.993 billion in 2024 [3] - Major business revenue increased by 41% to HKD 20.438 billion [3] - Shareholder profit reached HKD 13.419 billion, a 45% increase from HKD 9.270 billion in 2024 [3] - EBITDA rose 48% to HKD 17.164 billion [3] - Basic earnings per share increased by 45% to HKD 10.62 [3] Market Activity - The average daily trading volume in the cash market reached HKD 2,564 billion, more than double that of the first three quarters of 2024 [5] - The derivatives market saw an 11% increase in average daily contracts traded, reaching 1.7 million contracts [5] - The average daily trading volume for the third quarter of 2025 hit a record high of HKD 2,864 billion, more than double that of the same period in 2024 [6] - The Stock Connect program recorded significant growth, with average daily trading volumes for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect increasing by 67% and 229%, respectively [6] IPO Market Performance - Hong Kong's IPO market remained strong, with 69 new listings in the first three quarters of 2025, raising a total of HKD 188.3 billion, more than three times the amount raised in the same period of 2024 [8] - In the third quarter of 2025, 25 new companies listed, raising HKD 78.9 billion, with increases of 67% and 87% in the number of new listings and funds raised compared to the same quarter in 2024 [8] - The number of IPO applications in process reached 297, tripling from 84 at the end of 2024 [8] Strategic Developments - HKEX implemented several reform measures, including new regulations for IPO pricing and allocation to enhance market stability and balance investor participation [9] - The exchange successfully managed trading operations during adverse weather conditions, demonstrating its resilience as a global financial center [9]

Group 1 - The Hong Kong Stock Exchange (HKEX) announced a tender process for the audit work of the group for the year ending December 31, 2026, to maintain high standards of corporate governance [1] - After the completion of the tender process, the HKEX Board will appoint KPMG as the external auditor for the group for the year ending December 31, 2026, subject to approval by shareholders at the 2026 Annual General Meeting [1] - PricewaterhouseCoopers (PwC) has been reappointed as the auditor for the group to conduct the audit for the year 2025 at the Annual General Meeting scheduled for April 30, 2025, and will retire at the conclusion of the 2026 Annual General Meeting [1]

罗兵咸在于2025年4月30日举行的2025年股东周年大会上获续聘为核数师，为集团进行2025年度的审核 工作。罗兵咸将于2026年股东周年大会完结时退任核数师职务。 智通财经APP讯，香港交易所(00388)发布公告，有关就香港交易所及其附属公司(统称"集团")截至2026 年12月31日止年度的审核工作展开招标，以贯彻集团致力维持最高水平的企业管治。该招标程序完成 后，香港交易所董事会根据香港交易所稽核委员会的建议，议决委任毕马威会计师事务所为集团截至 2026年12月31日止年度的外聘核数师，有关委任须待香港交易所股东于2026年股东周年大会批准后方可 作实。 ...

罗兵咸在于2025年4月30日举行的2025年股东周年大会上获续聘为核数师，为集团进行2025年度的审核 工作。罗兵咸将于2026年股东周年大会完结时退任核数师职务。 格隆汇11月5日丨香港交易所(00388.HK)发布公告，董事会根据香港交易所稽核委员会的建议，议决委 任毕马威会计师事务所为集团截至2026年12月31日止年度的外聘核数师，有关委任须待股东于2026年股 东周年大会批准后方可作实。 ...