Investment Rating - The investment rating for Hong Kong Exchanges and Clearing Limited is "Buy" (maintained) [1] Core Views - The report highlights a significant improvement in ADT-related businesses, indicating potential for valuation uplift. The company's revenue and profit attributable to shareholders for the first three quarters of 2025 reached HKD 218.5 billion and HKD 134.2 billion, respectively, representing year-on-year increases of 37% and 45% [5][6] - The report anticipates continued high growth in the company's fundamentals, driven by increased trading volumes and a favorable market environment, including the return of Chinese concept stocks and sustained net inflows from southbound capital [5][6] Financial Performance Summary - For Q1-Q3 2025, trading, settlement, listing, custody, data, and other investment net income grew by 57%, 66%, 16%, 25%, 8%, 10%, and 4% year-on-year, respectively. The core driver of revenue growth is the significant increase in trading and settlement fees directly linked to ADT [5][6] - The report revises the ADT assumptions for Hong Kong stocks for 2025-2027 to HKD 2,580 billion, HKD 2,620 billion, and HKD 2,700 billion, reflecting year-on-year growth of 96%, 2%, and 3%, respectively. The forecast for net profit attributable to shareholders is adjusted to HKD 179 billion, HKD 192 billion, and HKD 202 billion for the same period, with corresponding EPS of HKD 14, HKD 15, and HKD 16 [5][6] Market Trends and Drivers - The report notes a robust primary market for Hong Kong stocks, with 69 new listings in Q1-Q3 2025, a 53% increase year-on-year, and total fundraising amounting to HKD 1,883 billion, more than three times that of the same period in 2024. The number of new stock applications being processed reached 297, over three times the 84 applications at the end of 2024 [7] - The report emphasizes that the high trading volume indirectly boosts income from custody, trustee, and agent services, as well as market data fees, which grew by 25% and 8% year-on-year, respectively [7] Valuation and Dividend Outlook - The investment income for Q1-Q3 2025 was HKD 38.9 billion, a 4% year-on-year increase. The expected dividend yield for 2025 is projected at 3.0%, assuming a constant payout ratio of 90%. The report suggests that a potential interest rate cut by the Federal Reserve could drive foreign capital back to the Hong Kong market, benefiting the exchange [8] - The current PE ratio is 31.2, positioned at the 22nd percentile over the past decade, with a dynamic PE of 30.2, indicating potential for valuation improvement [8]

证券时报记者吴瞬 2025年以来，香港IPO市场持续高歌猛进，而在近期港股IPO规模已达到2164.74亿港元。这是自2021年 的高峰后，时隔4年香港IPO再次突破2000亿港元。同时，2025年后续2个月仍有大量公司等待上市，香 港IPO正不断逼近2019年至2021年间所创下的3000亿港元巅峰。 本轮香港IPO热潮超出了绝大多数业内人士的预期。多位接受证券时报记者采访的人士认为，香港IPO 的热潮在未来仍将持续。 2025年以来的港股IPO市场一扫颓势，不仅IPO总额重登全球榜首，且热闹非凡：宁德时代、恒瑞医药 等大型IPO一个接一个，小而美的科技类、生物类IPO接连不断，蜜雪集团、沪上阿姨等新消费公司批 量上市。 在大型IPO方面，加上11月5日在港上市的赛力斯，今年以来港股市场一共出现了8家百亿港元级的 IPO。其中，宁德时代募资更是达到410亿港元，也是截至目前今年全球最大的IPO。 打新市场同样火爆，今年港股IPO在打新方面接连诞生了港股史上的"冻资王"和"超购王"。其中，蜜雪 集团认购金额达到1.77万亿港元，超过2021年快手上市前1.26万亿港元的认购规模，创下港股市场新股 认购的新纪录 ...

Core Insights - The Hong Kong stock market is experiencing a strong rebound, particularly in the Hang Seng Technology Index and the biopharmaceutical sector, driven by long-term economic transformation and short-term liquidity improvements [3][4]. Group 1: Market Structure Changes - Over the past decade, the Hong Kong market has shifted from being dominated by financial and real estate sectors to a focus on technology companies, aligning with China's economic structural upgrades [3][4]. - The introduction of various institutional innovations has attracted more unique and high-quality companies to list on the Hong Kong Stock Exchange [3]. Group 2: Factors Driving Market Growth - Improved liquidity is identified as the most direct driving force, with a significant recovery in market conditions since last year, leading to a narrowing of the valuation gap between Hong Kong and A-share markets [4]. - Many companies are increasingly focusing on shareholder returns, with major blue-chip companies achieving annual shareholder yields of 5% to 10% through dividends and buybacks, reflecting a recognition of long-term value [4]. - The surge in the technology and biopharmaceutical sectors is closely linked to collaborations and acquisitions by international pharmaceutical companies with Chinese firms, supported by China's strong new drug pipeline [4][5]. Group 3: Market Resilience and Future Outlook - The risk of delisting for Chinese companies in the U.S. has pressured the market, but Hong Kong has successfully attracted many of these companies for secondary or dual listings, alleviating concerns and drawing international investment [5]. - The rise of the Hang Seng Technology and biopharmaceutical sectors is seen as a result of market structure optimization and a renewed prosperity in China's capital markets, indicating the start of a new development cycle [6].

Group 1 - The recent trend of Chinese concept stocks returning to Hong Kong is primarily driven by companies in new economic sectors such as autonomous driving and biomedicine, indicating strategic adjustments and changes in global asset allocation [1][2] - The tightening regulatory environment in overseas markets, particularly the proposed changes by Nasdaq, has prompted companies to consider a dual listing in Hong Kong as a risk mitigation strategy, allowing them to diversify their shareholder base and avoid uncertainties in a single market [1][2] - The return of these companies to Hong Kong is not only for financing purposes but also represents a strategic move to align with local industry resources and attract investors who better understand their market positions and growth prospects [2][3] Group 2 - The return of Chinese concept stocks to Hong Kong is supported by the collaboration of regulatory bodies in mainland China and Hong Kong, which have simplified procedures and eased restrictions on cross-border capital flows [2][3] - The Hong Kong Stock Exchange has implemented continuous reforms, such as allowing dual-class shares and easing listing requirements for unprofitable biotech firms, which have facilitated the return of these companies [3] - The Hong Kong government has expressed its commitment to assist Chinese concept stocks in making Hong Kong their preferred return destination, enhancing the market's attractiveness for hard tech companies [3]

Core Insights - A total of 37 Chinese concept stocks have returned to the Hong Kong market through dual primary listings or secondary listings as of October 21, with 24 companies opting for dual primary listings and 13 for secondary listings [1][4] - The return of Chinese concept stocks is primarily driven by companies in the frontier technology sector, including smart driving, biotechnology, and advanced manufacturing [1][6] - The Hong Kong Stock Exchange (HKEX) offers significant advantages in terms of listing time, procedures, costs, and exemption conditions, which is expected to facilitate the continued return of Chinese concept stocks [1][6] Group 1 - Recent dual primary listings include smart driving companies WeRide and Pony.ai, which have both passed the HKEX hearing and are set to list [2] - The dual primary listing strategy is seen as crucial for smart driving companies to expand financing channels, enhance valuation stability, and connect with core markets [2] - Biotech companies are also planning dual primary listings, with Tianjing Biotechnology announcing its intention to conduct an IPO in Hong Kong [2] Group 2 - Hesai Technology became the first lidar company to achieve a dual primary listing, raising over 4.16 billion HKD, marking the largest IPO by a Chinese concept stock returning to Hong Kong in nearly four years [3] - The return of high-quality Chinese concept stocks to the Hong Kong market is supported by favorable policies and ongoing market reforms [4] - The HKEX has introduced mechanisms such as "same share, different rights" and relaxed listing requirements for unprofitable biotech firms, enhancing its capacity to accommodate Chinese concept stocks [4]

Core Insights - A total of 37 Chinese concept stocks have returned to the Hong Kong market through dual primary listings or secondary listings as of October 21, indicating a significant trend of quality Chinese companies returning to Hong Kong [1][4] - The technology sector, particularly in areas such as smart driving, biotechnology, and advanced manufacturing, has become a new driving force for the return of Chinese concept stocks to Hong Kong [1][5] - The Hong Kong Stock Exchange (HKEX) offers advantages in terms of listing time, procedures, costs, and exemption conditions, which are expected to facilitate the continued return of Chinese concept stocks [1][5] Group 1: Recent Listings - Smart driving companies, such as WeRide and Pony.ai, have recently passed the HKEX hearing, indicating their imminent dual primary listings on both NASDAQ and HKEX [2] - The dual primary listing is strategically significant for smart driving companies as it broadens financing channels and enhances valuation stability [2] Group 2: Market Trends - The return of quality Chinese concept stocks to the Hong Kong market is supported by favorable policies and ongoing reforms in the Hong Kong market [4][5] - The average daily trading volume in the Hong Kong market has increased by 132% year-on-year, reaching 2,483 billion HKD in the first eight months of this year, reflecting enhanced liquidity [5] Group 3: Policy Support - The China Securities Regulatory Commission (CSRC) has expressed support for quality Chinese concept stocks to return to the domestic and Hong Kong markets [4] - The Hong Kong government has also indicated its commitment to making Hong Kong the preferred return destination for Chinese concept stocks [4]

Group 1 - The Hong Kong IPO market is experiencing a recovery since the second half of last year, with a significant increase in fundraising activities, making it the top global market for fundraising in 2025 [1][2] - In 2025, the total equity financing in the Hong Kong primary market reached HKD 437.59 billion, a year-on-year increase of 260.41%, indicating a notable rise in market activity [1][2] - A total of 71 new IPOs have been listed in Hong Kong since 2025, raising approximately HKD 189.32 billion, with a high concentration in sectors such as information technology, healthcare, and industrials [1][2] Group 2 - The "A+H" listing model is expanding, with 83 A-share companies submitting applications to the Hong Kong Stock Exchange in 2025, surpassing the total from the past decade [1][2] - The month of June saw the highest number of applications, with 65 companies, followed by September with 60 applications [1][2] - Recent weeks have shown increased activity, with multiple companies listing and submitting applications simultaneously [1][2] Group 3 - The Hong Kong Stock Exchange has lowered the listing thresholds for specialized technology companies, reducing the market capitalization requirement for commercialized companies from HKD 6 billion to HKD 4 billion [2] - The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission have streamlined the approval process for A-share companies seeking to list in Hong Kong, promoting a more normalized "dual listing" mechanism [2] Group 4 - The IPO market in Hong Kong is characterized by a "Matthew Effect," where large projects are predominantly led by top investment banks, while some smaller banks only participate in a single IPO [4] - Major IPOs this year include companies like CATL, Hengrui Medicine, and Haitian Flavoring, with leading investment banks like CICC and Goldman Sachs playing significant roles [4] Group 5 - A-share hard technology companies are becoming the main force in Hong Kong IPOs, with sectors like power equipment, electronics, and biopharmaceuticals accounting for 50% of listings [5] - The return of Chinese concept stocks to Hong Kong is expected to enhance market liquidity, with estimates suggesting that nearly 30 companies could meet the criteria for secondary listings, potentially increasing daily trading volume significantly [5] Group 6 - The Hong Kong Stock Exchange has launched a "New Stock Connect" pre-roadshow platform to facilitate order entry by potential investors, aiming to reduce congestion during peak booking periods [6] - As of 2025, net inflows from mainland funds into the Hong Kong stock market have exceeded HKD 450 billion, marking a historical high, with these funds primarily directed towards sectors aligned with recent IPO applications [6] - Despite the positive trends, there are concerns about rising first-day share price drop rates and potential market volatility affecting the sustainability of the IPO boom [6]

Group 1 - The core viewpoint of the articles highlights the increasing trend of A-share companies opting for dual listings in Hong Kong, particularly in sectors like hard technology and new consumption [1][2][3] - As of September 24, 2023, 126 A-share companies have announced plans for Hong Kong listings, with 11 successfully listed and 64 having submitted applications for H-share issuance [1][2] - The "A拆H" trend is gaining momentum, with companies like Midea Group and Dongcheng Pharmaceutical actively pursuing spin-offs for Hong Kong listings [1][2] Group 2 - The Hong Kong IPO market has been active since 2025, with a significant increase in equity financing, leading the world with a fundraising amount of 1,087 billion HKD in the first half of the year [2][3] - Major A-share companies adopting the "A+H" model have significantly contributed to the increase in Hong Kong's equity financing, with companies like CATL and Hengrui Medicine raising over 10 billion HKD each [2][3] - The demand for financing from hard technology sectors such as new energy, semiconductors, and biomedicine is driving the trend of A-share companies seeking Hong Kong listings [2][3] Group 3 - The dual-platform strategy of "A+H" listings is supported by favorable policies, market conditions, and corporate supply factors, enhancing internationalization and growth opportunities for Chinese enterprises [3][4] - The Hong Kong capital market has seen increased liquidity, with an average daily trading volume of nearly 2,500 billion HKD in the first half of 2025, significantly higher than the previous five-year average [3][4] - The positive macroeconomic environment, ongoing policy support, and improved market sentiment are expected to sustain the activity in the Hong Kong stock market [4][5] Group 4 - The outlook for the Hong Kong stock market remains optimistic, driven by the strong demand for financing from hard technology industries and the increasing interest from investors [4][5] - The introduction of supportive policies, such as the "New National Nine Articles," aims to enhance Hong Kong's position as an international financial center [5] - The anticipated easing of monetary policy by the Federal Reserve is expected to attract more overseas funds to invest in high-growth opportunities in Asia, including the Hong Kong market [5]

Group 1 - Deloitte announced that the number of IPOs in Hong Kong is expected to exceed 80 by 2025, with the fundraising forecast raised from approximately HKD 200 billion to between HKD 250 billion and HKD 280 billion [1] - As of September 23, 2023, the total IPO fundraising in Hong Kong for the first three quarters reached approximately HKD 180 billion, with highlights including the return of Chinese concept stocks and the expansion of ETF products [1][2] - The technology sector is anticipated to remain a focal point for the market, with expectations for continued valuation improvements [1][2] Group 2 - In the first three quarters of 2025, Hong Kong's IPO market saw a significant increase, with 66 new listings compared to 45 in the same period last year, marking a 47% growth [2] - The total fundraising amount reached HKD 1,823 billion, a 228% increase from HKD 556 billion in the previous year, with six large IPOs contributing approximately 60% of the total [2][5] - The Hong Kong Stock Exchange (HKEX) remains the global leader in IPO fundraising, with a significant gap of over HKD 60 billion compared to the second-ranked New York Stock Exchange [4][5] Group 3 - The top ten global IPOs in terms of fundraising saw a slight decline of 3% year-on-year, with four of them listed on the HKEX, including Ningde Times at the top with HKD 41 billion [3] - The number of listing applications received by HKEX increased significantly, with 283 applications in the first eight months of 2025, up 123% from 127 applications in the same period last year [4] - The average price-to-earnings ratio for the Hong Kong main board reached 15 times, returning to levels seen in Q4 2021, indicating a recovery in the market [5]

Core Viewpoint - The Hong Kong government is taking steps to support the return of Chinese concept stocks (Chinext) to the Hong Kong market, including optimizing the "dual-class share" listing regulations, which is expected to enhance the attractiveness and liquidity of the Hong Kong stock market [1][4]. Group 1: Market Conditions and Regulations - As of September 21, there are 412 Chinese concept stocks with a total market capitalization of approximately $1.34 trillion, with 339 companies listed on NASDAQ valued at about $712 billion [2]. - The tightening of IPO and delisting policies on NASDAQ may accelerate the return of Chinese concept stocks, with new minimum fundraising requirements set at $25 million for companies primarily operating in China [2]. - The Hong Kong Stock Exchange (HKEX) has implemented various reforms, including a dedicated "Tech Company" channel to facilitate the return of Chinese concept stocks [4]. Group 2: Opportunities for Return - The return of Chinese concept stocks is expected to follow four main pathways: secondary listings, privatization followed by relisting, spin-off listings, and direct applications for dual primary listings [5]. - High-quality Chinese concept stocks, particularly those with stable profit models and international influence, are more likely to meet the listing requirements on the HKEX [2][5]. - The potential return of 27 Chinese concept stocks could add over HK$1.4 trillion in market capitalization to the Hong Kong market, with an expected increase of HK$19 billion in daily trading volume [5]. Group 3: Impact on Market Structure - The return of Chinese concept stocks is anticipated to enhance the vitality and scale of the Hong Kong market, with a focus on technology and new economy sectors [5]. - The optimization of the "dual-class share" system is expected to create a more favorable and competitive listing environment for Chinese concept stocks [4][5]. - The inclusion of more high-growth potential companies that do not currently meet high market capitalization or revenue standards is likely to improve the overall market structure and attractiveness of the Hong Kong stock market [4][5].