Core Insights - The Hong Kong Stock Exchange (HKEX) has experienced significant growth in revenue and net profit, achieving record highs for both metrics in the third quarter and the first three quarters of 2025 [1][2][3] Financial Performance - Total revenue for HKEX in the first three quarters reached HKD 21.9 billion, a year-on-year increase of 37%, while net profit was HKD 13.4 billion, up 45% [2] - In the third quarter alone, revenue was HKD 7.775 billion, reflecting a 45% year-on-year growth, and net profit was HKD 4.9 billion, a 56% increase [2] Market Activity - The growth in HKEX's performance is attributed to heightened market trading activity and a surge in new listings [3] - Average daily trading volume for the first three quarters was HKD 256.4 billion, a 126% increase year-on-year, driving significant growth in trading and settlement fees [3] - The Stock Connect program saw record average daily trading amounts, with northbound and southbound trading reaching RMB 206.4 billion and HKD 125.9 billion respectively, marking increases of 67% and 229% [3] IPO Performance - HKEX led the global IPO market in the first three quarters of 2025, with 69 new listings raising a total of HKD 188.3 billion, more than three times the amount from the same period last year [5] - In the third quarter, 25 new companies were listed, raising a total of HKD 78.9 billion, with increases of 67% and 87% in the number of new listings and capital raised compared to the same quarter in 2024 [5][6] - The number of IPO applications in process reached 297 by September 30, 2025, significantly up from 84 at the end of 2024 [5] Strategic Initiatives - HKEX has introduced new pricing regulations for IPOs to enhance the pricing mechanism, aiming to attract more institutional investors and companies to participate [6]

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 compared to the same period in 2024, and shareholder profit rising to HKD 13.419 billion, up 45% year-on-year [1] Group 1: Financial Performance - Total revenue and other income for the first three quarters of 2025 was HKD 21.851 billion, a 37% increase from HKD 15.973 billion in 2024 [1] - Shareholder profit for the same period reached HKD 13.419 billion, reflecting a 45% increase from HKD 9.253 billion in 2024 [1] - Average daily trading volume in the cash market reached HKD 256.4 billion, more than double the amount in the first three quarters of 2024 [1] Group 2: Market Activity - The average daily trading volume for the third quarter of 2025 hit a record high of HKD 286.4 billion, more than double that of the third quarter of 2024 [1] - In September 2025, the average daily trading volume exceeded HKD 300 billion for the first time, reaching HKD 316.7 billion [1] - The average daily trading volume for the first three quarters of 2025 was HKD 256.4 billion, a 126% increase compared to the same period in 2024 [1] Group 3: Stock Connect and IPOs - The average daily trading volume for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached historical highs, with average daily trading amounts of RMB 206.4 billion and RMB 125.9 billion, respectively, representing increases of 67% and 229% year-on-year [2] - The total fundraising amount from IPOs in Hong Kong reached HKD 188.3 billion, more than three times that of the first three quarters of 2024, with 69 companies listed during this period [2] - HKEX's CEO emphasized the ongoing strategic reforms aimed at enhancing market diversification, liquidity, and global connectivity [2]

Core Insights - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, moving from a stance of avoidance to one of necessity, driven by China's policy stability and technological advancements [1][3] Group 1: Investment Trends - HKEX's CEO highlighted that global diversification needs and the attractiveness of Chinese assets are leading foreign capital to transition from "cannot invest" to "cannot miss investing" in China [1][3] - In the first half of the year, HKEX reported a new stock financing amount of HKD 1,094 billion, reclaiming the top position among global exchanges, with a daily average trading volume of HKD 2,402 billion, a year-on-year increase of 118% [2] - Foreign capital is significantly returning to the Hong Kong market, with foreign subscriptions accounting for 70-80% of certain IPOs, indicating a robust demand from long-term investors from regions such as Europe, the Middle East, and Southeast Asia [2][3] Group 2: Market Dynamics - The shift in foreign investment logic is attributed to geopolitical tensions and a reassessment of asset allocation strategies, leading to a search for new investment opportunities in Hong Kong's leading and high-potential companies [2][3] - The average daily trading volume of Hong Kong stocks is projected to rise from approximately HKD 1,000 billion in 2023 to HKD 1,300 billion in 2024, further increasing to HKD 2,402 billion in the first half of 2025, with foreign trading volume accounting for about 70% [3] Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet diverse financing needs, with recent innovations such as the introduction of Chapter 18A and 18C rules allowing biotech and specialized technology companies to list without prior revenue [4][5] - The successful implementation of these rules has led to increased market recognition and a growing number of applications from companies seeking to list under these provisions [5] Group 4: Market Connectivity - The rise in IPO activity is complemented by a positive interaction with the A-share market, with "A+H" listings creating a beneficial cycle between the two markets [6] - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete globally, addressing current gaps in its market [6][7] - Future plans include expanding the range of products available through the Stock Connect program, including ETFs and bonds, to facilitate greater access for international investors [6][7]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, moving from a stance of avoidance to one of necessity, driven by China's policy stability and technological advancements [1][3]. Group 1: Investment Trends - Foreign capital is increasingly viewing Chinese assets as essential, with a notable change in investment logic from "Anything But China" to "Buy China" [3]. - In the first half of the year, HKEX reported a new stock financing amount of HKD 1,094 billion, reclaiming the top position among global exchanges [2]. - The average daily trading volume in the securities market reached HKD 2,402 billion, a year-on-year increase of 118% [2]. Group 2: Supply and Demand Dynamics - The supply side is robust, with over 200 companies currently processing IPO applications, nearly half of which are technology firms [2]. - A significant highlight on the demand side is the substantial return of foreign capital, with foreign investors participating in 70-80% of certain IPOs [2][3]. - The shift in global asset allocation strategies, influenced by geopolitical tensions and trade protectionism, is prompting investors to diversify away from USD assets towards Hong Kong stocks [2][3]. Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet diverse financing needs, exemplified by the introduction of the 18A and 18C listing rules, which allow biotech and specialized technology companies to go public [5]. - The 18C rule has already seen three companies listed and over ten applications submitted, indicating growing market acceptance [5]. Group 4: Market Connectivity - The "A+H" listing model has created a positive feedback loop, with average trading volume for "A+H" companies in A-shares increasing by approximately 15% this year [6]. - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete with global markets [6]. - Future plans include expanding the range of products available through the Stock Connect, including ETFs and bonds, to facilitate greater market integration [6][7].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is witnessing a significant shift in foreign investment sentiment towards Chinese assets, driven by the increasing attractiveness of these assets and the demand for diversified global capital allocation [1][2][3] Group 1: Investment Trends - Foreign capital is transitioning from a passive to an active approach in investing in Chinese assets, with a notable increase in foreign participation in IPOs, exemplified by a large domestic company's IPO where foreign subscription reached 70-80% [2][3] - The global asset allocation logic is changing, with investors moving away from USD assets due to geopolitical tensions and trade protectionism, leading them to consider Hong Kong stocks as a viable alternative [2][3] - The investment logic for foreign capital is shifting from "Anything But China" to "Buy China," indicating a growing confidence in Chinese assets [2][3] Group 2: Market Performance - HKEX reported impressive performance in the first half of the year, with new stock financing reaching HKD 109.4 billion, reclaiming the top position among global exchanges, and an average daily trading volume of HKD 240.2 billion, up 118% year-on-year [1][2] - The average daily trading volume for Hong Kong stocks is projected to rise from approximately HKD 1 billion in 2023 to HKD 1.3 billion in 2024, and further to HKD 2.4 billion in the first half of 2025, with foreign capital accounting for about 70% of the trading volume [3][4] Group 3: Institutional Innovation - HKEX is committed to optimizing its institutional framework to meet the diverse needs of enterprises and investors, with recent innovations such as the introduction of Chapter 18A and 18C allowing biotech and specialized technology companies to list without prior revenue [4][5] - The introduction of these new listing rules reflects HKEX's proactive approach to align with long-term investor demands and support early-stage financing for innovative companies [5][6] Group 4: Market Connectivity - The IPO boom in Hong Kong is positively correlated with the A-share market, with "A+H" listings creating a virtuous cycle between the two markets [5][6] - HKEX aims to enhance its product offerings in fixed income, foreign exchange, and commodities to better compete globally, as current offerings are limited compared to US markets [6] - Future plans include expanding the range of products available through the Stock Connect program, such as ETFs and bonds, to facilitate greater access for foreign investors [6]

Core Viewpoint - A strategic global capital rebalancing is underway, with capital flowing from dollar assets to non-dollar assets, significantly impacting markets like China [1][2]. Group 1: Global Capital Diversification - Global investors are reassessing their stock exposure due to trade dynamics, fiscal policy uncertainties, and currency pressures, leading to a diversification of revenue sources into Europe, Japan, China, and other Asian markets [2][3]. - The past 25 years saw a heavy bias towards U.S. assets, but the current depreciation of the dollar and capital outflows are expected to significantly alter the weight of U.S. assets in global indices [3][4]. - Investors are increasingly interested in European and Asian high-rated sovereign bonds, as well as local currency debt markets, indicating a shift in fixed income preferences [7]. Group 2: Emerging Markets and China - The decline of the "American exceptionalism" narrative and the growing demand for diversified investments are enhancing global investors' exposure to Chinese assets and renminbi-denominated assets [9]. - China's bond market, valued at 180 trillion yuan, is seen as an ideal choice for large institutional investors seeking low-volatility assets, particularly government bonds [10]. - The 10-year Chinese government bond is projected to yield over 7% without hedging, outperforming most other countries' bonds, making it an attractive option for investors [11]. Group 3: Investment Opportunities in Asia - Asian local currency and bonds are favored due to low inflation pressures, with Asian dollar investment-grade bonds providing strong defensive characteristics and attractive risk-adjusted returns [8]. - Emerging markets, particularly those represented by China, are becoming increasingly attractive as the dollar depreciates, benefiting local bonds and equities [5][6].