Core Insights - The Hong Kong Stock Exchange (HKEX) is actively enhancing its product ecosystem to attract global investors and increase market liquidity, with a focus on innovative enterprises and diverse investment opportunities [1][3][4]. Group 1: Market Development - HKEX is experiencing a vibrant new stock activity, with expectations to become the leading market for new stock fundraising globally by 2025 [3]. - The exchange is witnessing strong growth in derivative product trading, particularly in the Hang Seng Tech Index options and leveraged products, indicating a robust demand for new investment products [3][4]. - The number of biotechnology and healthcare companies listed in Hong Kong has increased significantly, with over 260 companies and a total market capitalization exceeding HKD 4.8 trillion, reflecting the sector's attractiveness to global investors [4]. Group 2: New Product Launches - The introduction of the Hang Seng Biotechnology Index futures aims to meet the hedging needs of institutional and individual investors interested in the biotechnology sector [4]. - Weekly stock options have seen substantial growth, with over 22 million contracts traded in the first year, enhancing overall trading activity in the derivatives market [5]. - The launch of stock options for popular companies, such as Pop Mart, demonstrates HKEX's strategy to cater to diverse investor preferences and enhance market participation [6]. Group 3: Retail Investor Engagement - The increasing number of retail investors is significantly boosting overall market liquidity, prompting HKEX to develop suitable products to meet their needs [7]. - Successful products like weekly stock options and traditional retail-focused products such as warrants and structured products are attracting a growing number of retail investors [7]. Group 4: Future Initiatives - HKEX is focused on innovation and optimizing its market infrastructure to better serve issuers and investors, including potential reforms to trading units and market benchmarks [8]. - The exchange is exploring opportunities for collaboration with other exchanges in Southeast Asia and the Middle East to enhance liquidity and attract more global investors [8]. Group 5: Data Utilization - HKEX aims to leverage operational data to develop new benchmark indices, indicating a commitment to enhancing investment tools for market participants [9].

Core Insights - Hong Kong Stock Exchange (HKEX) has grown significantly over 25 years, with a market capitalization of HKD 496 billion as of June 20, 2025, up from HKD 8.6 billion in 2000, representing an increase of over 56 times [1][2] - The number of listed companies on the Hong Kong Stock Exchange has increased from 790 to over 2,600 [1][2] - Mainland enterprises now account for 81% of the total market capitalization of Hong Kong stocks, indicating a strong presence of Chinese companies in the market [1][6] Market Development - The total market capitalization of the Hong Kong stock market rose from HKD 4.86 trillion at the end of 2000 to HKD 40.9 trillion by the end of May 2025 [3] - Daily trading volume in the Hong Kong stock market averaged HKD 242.3 billion in the first five months of 2025, a year-on-year increase of 120% [3] - The average daily trading volume for derivative warrants and bull/bear certificates also saw significant increases of 66% and 87%, respectively [3] Strategic Initiatives - HKEX has embraced reforms such as the introduction of dual-class shares and special listing rules for technology companies, enhancing its appeal to new economy firms [1][4] - The exchange has established mechanisms like the Stock Connect and Bond Connect to facilitate cross-border trading and improve market liquidity [1][6] - Future plans include upgrading trading and settlement systems, diversifying product offerings, and enhancing services to attract global capital [6][8] Future Outlook - HKEX aims to continue its role as a "super connector" between mainland China and global markets, focusing on innovative and high-quality enterprises [2][8] - The exchange is expected to promote investment opportunities in technology and new consumption sectors to international investors [8] - The introduction of the "H+A" listing model is anticipated to foster better interaction between A-shares and Hong Kong stocks, further expanding the market [7]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has played a crucial role in connecting the Chinese and global capital markets over the past 25 years, fostering a resilient and vibrant market environment while promoting sustainable development initiatives [2][3][6]. Group 1: Achievements and Historical Context - HKEX has evolved from a manufacturing hub to an international financial center, serving as a vital bridge between China and the world [5][6]. - The number of listed companies on HKEX has increased from 790 in 2000 to over 2600 today, representing more than a threefold growth, with mainland enterprises accounting for 81% of the market capitalization [10]. - The introduction of the H-share mechanism and the Stock Connect programs have significantly enhanced the connectivity between international capital and Chinese opportunities [9][10]. Group 2: Future Opportunities and Strategic Focus - HKEX aims to strengthen its role as a super connector for emerging capital and innovative enterprises, particularly in the context of green transformation [3][19]. - The exchange is actively seeking to attract companies from Southeast Asia and the Middle East for secondary listings, expanding its international reach [14][19]. - HKEX plans to leverage its financing platform to connect green innovation companies with capital, while enhancing ESG standards and guidelines for market participants [16][21]. Group 3: Community Engagement and Social Responsibility - HKEX has contributed over HKD 600 million through its charity fund to support various community projects focused on financial education, diversity, and environmental initiatives [16]. - The exchange believes that social prosperity is closely linked to economic development and will continue to collaborate with community service sectors to promote long-term growth in Hong Kong [16].

Financial Data and Key Metrics Changes - HKEX reported record financial results for 2024, with revenue and other income increasing by 9% year-on-year, and a remarkable 31% increase in Q4 compared to the previous year [4][7] - Profit attributable to shareholders rose by 10% year-on-year, with Q4 profit showing a significant 46% increase [4][8] - Headline average daily turnover (ADT) reached $186.9 billion in Q4 2024, more than doubling from Q4 2023 [7][9] - Full-year profit after tax was $13.1 billion, with earnings per share at $10.32, both up 10% from 2023 [8][10] Business Line Data and Key Metrics Changes - The cash, commodities, and ETP markets all recorded double-digit growth in average daily turnover and volume, while the derivatives market achieved record average daily volumes [5][10] - Derivatives trading volumes reached new highs, contributing significantly to revenue, with average daily volumes up 15% from 2023 [19][10] - The LME's chargeable average daily volume increased by 18% from 2023, reflecting strong performance in the commodities market [10][12] Market Data and Key Metrics Changes - Northbound and southbound Stock Connect volumes reached record quarterly highs, with northbound ADT up 39% year-on-year and southbound up 55% [17][10] - IPOs in 2024 raised a total of $88 billion from 71 new listings, with new economy companies accounting for over 80% of the capital raised [18][10] Company Strategy and Development Direction - HKEX is focused on enhancing market resilience and competitiveness through strategic reforms, new products, and microstructure enhancements [5][14] - The company aims to modernize its infrastructure and enhance product offerings to ensure long-term market vibrancy and sustainability [14][30] - HKEX is exploring adjacent business opportunities, including the introduction of a virtual asset index series and a data marketplace [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating continued macro uncertainties but renewed interest in trading and IPOs [29][30] - The company plans to implement a minimum spread reduction and explore a shorter settlement cycle (T+1) to enhance market competitiveness [66][70] - Management emphasized the importance of maintaining cost discipline while investing in talent and technology to support sustainable growth [72][75] Other Important Information - The Board declared a second interim dividend of $4.9 per share, bringing the total full-year dividend to $9.26 per share, up 10% from 2023 [8][10] - Operating expenses increased by 6% year-on-year, primarily due to higher staff and IT costs, but the company maintained a strong EBITDA margin [11][12] Q&A Session Summary Question: Update on IPO pipeline and secondary listings - Management noted a strong trend in A-share companies pursuing dual listings in Hong Kong, with around 30 companies already in the pipeline [39][40] - Concerns about SAFE's scrutiny on IPO proceeds were addressed, with management confident in the ongoing encouragement for offshore investments [40][41] Question: Listing requirements and post-listing obligations - Management confirmed ongoing reviews of listing eligibility and compliance requirements to attract more companies [49][50] - Continuous improvements to the listing regime are aimed at maintaining competitiveness [50][52] Question: Effective tax rate and depreciation - Management indicated that the effective tax rate may rise to a minimum of 15% due to BEPS regulations, impacting financials [55][56] - Depreciation and amortization are expected to increase with the launch of new systems in 2025 [58][59] Question: 2025 strategy and operational expenses - Plans for 2025 include enhancing market vibrancy, future-proofing technology, and exploring adjacent business opportunities [64][70] - Management emphasized maintaining cost discipline while investing in talent and IT systems [72][75] Question: Data-related business growth - Management acknowledged the potential for growth in data-related business and the importance of developing a data marketplace [81][84] - The focus remains on diversifying revenue streams while maintaining a strong core business [81][84]