Core Insights - The Hong Kong IPO market has welcomed over 100 companies since 2025, raising more than HKD 270 billion, with over 300 applications currently being processed for 2026 [2][3] Group 1: Market Performance and Drivers - The primary drivers behind the Hong Kong market's performance include the global trend of diversified capital allocation and the shift in China's economic development model [3] - Global investors are increasingly seeking diversified growth and risk management opportunities, with Hong Kong being a key market for this trend [3] - The "DeepSeek moment" in January 2025 highlighted China's strength in advanced technology and its transition to a high-value, innovation-driven growth model [3] Group 2: Competitive Advantages and Future Strategies - The interconnectedness with the mainland market is a significant advantage for the Hong Kong Stock Exchange (HKEX) compared to other international exchanges [4] - HKEX aims to strengthen this advantage by optimizing connectivity with the mainland and promoting the internationalization of the RMB [4] - Over the next decade, HKEX plans to enhance regional cooperation and connect Asian markets with opportunities in China [4] Group 3: Strategic Focus Areas - The first strategic focus is to expand and enhance a diversified asset ecosystem, introducing products tailored for Asian clients, particularly retail and professional investors [5] - The second focus is on technological and operational advancements, including market consultations on settlement cycle reforms and the adoption of emerging technologies like AI [5][6] - The third focus is on developing emerging businesses such as data, analytics, indices, digital currencies, and tokenization, with plans to launch more index products to facilitate investment in Asian assets [6]

Core Insights - The article emphasizes two main driving forces behind the recent market performance: the trend of global capital diversification and the shift in China's economic development model [1][3]. Group 1: Global Capital Diversification - Global capital is increasingly seeking diversified growth and risk management opportunities due to ongoing macroeconomic uncertainties, leading to a shift in capital allocation patterns [1]. - Hong Kong has become a focal point for this trend, with the most active trading days in its stock market occurring after September 2024, indicating a growing interest from global investors [1]. - The Asian market, particularly Hong Kong, is experiencing a surge in IPOs, with over 100 companies listed since 2025, raising more than 270 billion HKD [2]. Group 2: China's Economic Transition - China's economic model is transitioning from traditional manufacturing to high-value, innovation-driven industries, attracting capital inflows [1]. - The "DeepSeek moment" in January 2025 highlighted China's strengths in frontier technology and its evolving growth model [1]. Group 3: Future of Hong Kong Market - The long-term outlook for the Asian market, including Hong Kong, is positive, with expectations of continued economic growth and development of financial markets [4]. - Hong Kong is positioned to become a core global financial market, leveraging its unique connectivity with mainland China's capital markets [6][7]. Group 4: Strategic Initiatives - The Hong Kong Stock Exchange (HKEX) aims to enhance its multi-asset ecosystem, focusing on products and tools that meet the evolving needs of global investors [8]. - There is a commitment to improving technology and operations to facilitate easier investment and risk management for both Asian and international investors [10]. - The development of emerging businesses, including data analytics, indices, and digital currencies, is a priority to support core operations and enhance market liquidity [11]. Group 5: Market Records and Future Plans - Despite macroeconomic volatility, the Hong Kong market has set multiple records in 2025, with HKEX launching new products and market structure reforms [12]. - The management team of HKEX plans to share updates on strategic initiatives through a series of short videos, emphasizing their commitment to enhancing connectivity in the global capital market [12].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is poised for a busy year in 2025, with a surge in large IPOs and record market transactions, while also focusing on enhancing connectivity between Asian markets and opportunities in China [1][6]. Market Performance - The past year's market performance has been driven by two main factors: the global trend of diversified capital allocation and the shift in China's economic development model. Investors are increasingly seeking diversified growth and risk management opportunities globally [2][5]. - Since the end of 2024, the Hong Kong market has seen significant activity, with the 20 most active trading days occurring after September 2024, indicating a shift in investor behavior towards Asian markets [2][5]. IPO Activity - As of 2025, the Hong Kong IPO market has welcomed over 100 new companies, raising more than 270 billion HKD, with expectations of over 300 companies currently processing listing applications for 2026 [3]. Asian Economic Trends - Asia is becoming a central player in the global economy, contributing nearly double its share to global GDP since 1990, and attracting about 40% of global foreign direct investment. Asian companies represent 55% of global listed companies, accounting for 27% of total global stock market capitalization [5][6]. Future Outlook for HKEX - The long-term outlook for the Asian market is positive, with expectations of continued economic growth driving the development of regional financial markets and attracting global capital. HKEX is positioned to leverage its unique connectivity with mainland China to enhance its role as a global financial hub [6][7]. - HKEX aims to strengthen its advantages in connectivity with mainland markets, optimizing mechanisms to support further opening of the Chinese capital market and the internationalization of the Renminbi [7].