Core Viewpoint - Everbright Securities maintains an "Overweight" rating for Hong Kong Exchanges and Clearing (HKEX), citing its unique position and strong financial performance in the first three quarters of 2025, with expectations for continued growth in the fourth quarter due to active market sentiment and policy support for mainland companies listing in Hong Kong [1] Financial Performance - In the first three quarters of 2025, HKEX achieved total revenue of HKD 21.85 billion, a year-on-year increase of 36.6%, with the growth rate accelerating by 4.1 percentage points compared to the first half of the year; Q3 revenue growth was 44.7% year-on-year and 7.7% quarter-on-quarter [2] - The net profit attributable to shareholders for the first three quarters was HKD 13.42 billion, up 44.8% year-on-year, with a growth rate increase of 5.7 percentage points compared to the first half; Q3 net profit growth was 55.8% year-on-year and 10.3% quarter-on-quarter [2] Revenue Breakdown - Trading fees, system usage fees, and settlement fees accounted for HKD 13.1 billion (60.0% of total revenue), up 60.5% year-on-year, with Q3 growth rates of 83.6% year-on-year and 28.2% quarter-on-quarter, driven by heightened trading activity in the Hong Kong stock market [2] - Investment income for the first three quarters was HKD 3.89 billion (17.8% of total revenue), a year-on-year increase of 4.4%, with a narrowing growth rate compared to the first half; net investment income from funds was HKD 1.3 billion, down 7.8% year-on-year [3] - Listing fee revenue was HKD 1.27 billion (5.8% of total revenue), up 17.1% year-on-year, benefiting from increased market volatility and demand for structured products [3] Market Activity - The average daily trading volume for stock securities on the exchange reached HKD 238.7 billion in the first three quarters, a record high, with a year-on-year increase of 132.4%; Q3 growth was 149.9% year-on-year [4] - The average daily trading volume for derivatives was HKD 17.7 billion, up 67.0% year-on-year, with Q3 growth of 59.5% year-on-year [4] - Northbound and southbound trading average daily volumes were RMB 206.4 billion and HKD 125.9 billion, respectively, both record highs, with year-on-year increases of 67.4% and 228.7% [4] New Listings - In the first three quarters of 2025, HKEX saw 69 new listings, a year-on-year increase of 53.3%, raising a total of HKD 188.3 billion, which is a 238.7% increase year-on-year; Zijin Mining's listing in Q3 was the second-largest globally this year, raising HKD 28.7 billion [5] - As of the end of Q3 2025, there were 297 listing applications pending, representing a 253.6% increase from the end of the previous year [5]