Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) reported a significant increase in revenue and profit for Q3 2025, driven by record trading volumes in the spot market [1][2] - The company achieved its highest-ever revenue and profit figures for the first three quarters of 2025, indicating strong market performance [1] Financial Performance - For Q3 2025, HKEX's total revenue and other income reached HKD 7.775 billion, a 45% increase compared to Q3 2024, with main business revenue rising by 54% [1] - Net investment income from the company's funds was HKD 254 million, down from HKD 507 million in Q3 2024, attributed to reduced fair value gains from externally managed investment funds [1] - Shareholders' profit for Q3 2025 was HKD 4.9 billion, marking a 56% increase from Q3 2024 [1] - For the first three quarters of 2025, total revenue and other income amounted to HKD 21.851 billion, a 37% increase year-on-year, with main business revenue up by 41% [1] - Shareholders' profit for the first three quarters was HKD 13.419 billion, a 45% increase compared to the same period in 2024 [1] Market Position and Strategy - The CEO highlighted HKEX's leading position in the global IPO market, with a high number of new stock listings across various thriving sectors, including technology [2] - The spot market, derivatives market, and the Stock Connect program maintained active daily trading volumes [2] - The London Metal Exchange has been enhancing market liquidity, contributing to a robust development in the metals trading market [2] - HKEX is committed to strategic reforms aimed at promoting market diversification, enhancing liquidity, and strengthening global connectivity [2] - The company aims to build a diversified asset ecosystem to support the long-term development of Hong Kong's capital markets [2]

Core Insights - The recent rise in US Treasury yields has led to a significant increase in the issuance of new dollar-denominated financial products, with a cautious approach towards long-duration US Treasuries among investors [1][2][3] - There is a global trend towards diversifying asset allocation, reducing reliance on dollar assets, and increasing demand for RMB-denominated assets, particularly in the context of US-China tensions [1][5][6] Group 1: Market Trends - The number of newly issued dollar financial products, such as "USD fixed deposits" and "QDII" funds, has surged, with 213 new products launched between April 1 and June 3, averaging a performance benchmark of around 4% and typically having a duration of less than one year [2] - As of June 2, 2023, the yields on US Treasuries have reached historical highs, with the 2-year yield at 3.930%, the 3-year yield at 3.899%, and the 30-year yield at 4.963% [2] Group 2: Investment Strategies - Analysts suggest a cautious approach to long-duration US Treasuries due to increased uncertainty and risk premium re-evaluation, recommending investors to focus on short to medium-duration bonds [2][3][4] - The strategy of avoiding long-term bonds and cautiously allocating to medium-duration US Treasuries is becoming mainstream, with a focus on interest rate strategies [3][4] Group 3: RMB Asset Demand - Despite a declining interest rate environment in China's bond market, the demand for RMB-denominated assets remains strong, supported by the stability of the RMB exchange rate and consistent cross-border capital flows [5][6] - The trend of de-dollarization is prompting some central banks and sovereign funds to increase their holdings of RMB bonds as reserve assets, providing structural support for the RMB's stability [6][7] Group 4: Diversification in Asset Allocation - The long-term trend towards diversified asset allocation is becoming an irreversible global financial norm, with investors encouraged to build multi-asset portfolios across regions and sectors [7] - Financial institutions are increasingly launching global allocation products to meet investor demand for diversification and stable returns, reflecting a focus on asset variety, risk control, and yield balance [7][8]