Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) is expected to perform well in 2025, with a strategic focus on growth, projecting net profits for 2026-2028 to be HKD 186 billion, HKD 206 billion, and HKD 229 billion, representing year-on-year growth rates of 4.8%, 10.5%, and 11.2% respectively, with current price-to-earnings ratios of 27.5, 24.9, and 22.4 times [1] Group 1: Financial Performance - In 2025, HKEX reported a 30% year-on-year increase in total revenue and other income to HKD 292 billion, and a 36% increase in net profit attributable to shareholders to HKD 178 billion, with Q4 showing a 15% year-on-year growth, slightly down from Q3 [1] - The revenue structure for 2025 showed that cash, derivatives, and commodities accounted for 50%, 24%, and 11% of total revenue respectively [1] - Cash business revenue increased by 56% year-on-year to HKD 147 billion, driven by strong trading volume, with the average daily turnover (ADT) rising by 90% to HKD 2,498 billion [1] - The revenue from the Stock Connect program increased by HKD 15.7 billion year-on-year to HKD 43.2 billion, accounting for 14.8% of HKEX's total revenue [1] Group 2: Derivatives Performance - The trading volume of financial derivatives showed divergence, with total revenue and other income increasing by 11%, but below the overall company growth rate [2] - The average daily trading volume of futures contracts decreased by 6% due to a 16% drop in daily average contracts for the Hang Seng Index and Hang Seng China Enterprises Index, leading to a 7% decline in futures trading revenue [2] - Conversely, the daily trading volume of stock options increased by 22%, with higher fee options trading becoming more active, offsetting the decline in futures trading revenue [2] Group 3: Investment and Strategic Initiatives - In 2025, HKEX's net investment income increased by HKD 1.84 billion to HKD 51.1 billion, with expectations for 2026 influenced by various factors including collateral arrangements and fluctuations in HIBOR [3] - Operating expenses for 2025 increased by only 2% year-on-year, with EBITDA growth outpacing revenue growth by 10 percentage points, reflecting the company's scale effects and cost control capabilities [3] - HKEX is actively pursuing strategic measures to enhance its multi-asset ecosystem, including acquiring a 20% stake in a clearing company for HKD 4.55 billion, which will strengthen its fixed income and currency product offerings [4] - The exchange is also expanding its international influence, with seven international issuers from countries like Kazakhstan, Singapore, Thailand, and the UAE listing in 2025, and over ten international companies currently in the IPO queue [4]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has demonstrated strong performance in enhancing stock market liquidity and new listings over the past two years, achieving record high revenues and profits for the second consecutive year [1] Group 1: Market Performance - HKEX reported a significant increase in average daily trading volume, which rose by 90% year-on-year to nearly HKD 250 billion [1] - The trading volumes in the spot, derivatives, and commodities markets also reached new highs [1] Group 2: Investor Demand and Product Development - There is a growing diversification in global investor demand, with interests not only in equities but also in derivatives, commodities, and fixed income products [1] - The exchange plans to focus on building a multi-asset ecosystem to enhance Hong Kong's market competitiveness and has a positive outlook on daily trading volume trends [1] Group 3: Future Product Offerings - Strong demand from professional retail investors has been noted, particularly for derivatives [1] - HKEX is considering the launch of fixed income ETFs in addition to existing bond ETFs, and anticipates introducing more new products in the futures market, including weekly and monthly stock options [1] - There are ongoing efforts to introduce the "zero-day options" contract for the Hang Seng Index, which would expire on the same trading day [1]

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) reported strong financial performance for the fiscal year 2025, with significant increases in revenue and profit, highlighting its role as a global financial hub and its strategic initiatives for future growth [1][2]. Financial Performance - HKEX's total revenue and other income for 2025 reached HKD 29.161 billion, a 30% increase compared to 2024 [1] - Shareholders' profit attributable to the company was HKD 17.754 billion, up 36% from the previous year [1] - Basic earnings per share were HKD 14.05, with a second interim dividend declared at HKD 6.52 per share [1] - In Q4 of 2025, revenue and other income amounted to HKD 7.31 billion, reflecting a 15% year-on-year increase [1] - Main business revenue for Q4 was HKD 6.665 billion, an 11% increase year-on-year [1] - Shareholders' profit for Q4 was HKD 4.335 billion, a 15% increase compared to the same quarter last year [1] Strategic Initiatives - The CEO emphasized HKEX's role as a global connector and its return to the top of the global IPO financing center rankings, achieving record trading volumes and performance [2] - The company is focused on continuous development, actively exploring new opportunities, and reforming its product ecosystem and market microstructure to align with global investor trends [2] - HKEX is making strategic investments to expand its diverse asset ecosystem, including acquiring a 20% stake in a clearing settlement firm and launching LME-recognized warehouses in Hong Kong [2] - Despite anticipated market volatility in 2026, there are optimistic factors, such as global investors seeking diversification through Asian markets, particularly Chinese assets [2] - The long-term strategic development plan includes significant investments in upgrading essential infrastructure to maintain competitiveness in global markets and strengthen Hong Kong's position as an international financial center [2]