Core Viewpoint - The article emphasizes the need for China to leverage its economic resilience and advancements in new productive forces to attract global capital, especially in the context of ongoing geopolitical tensions and changes in the economic landscape [1]. Group 1: Market Development and Stability - The article suggests that promoting rapid development of the capital market while maintaining market stability should be prioritized. It highlights the importance of capitalizing on the current global governance changes to enhance "Investing in China" and "China Investing" opportunities [1]. - The unique advantages of the Hong Kong market are identified as crucial for achieving a more vibrant and stable market, which would boost international capital's confidence in allocating Chinese assets [1]. Group 2: Performance of Hong Kong and A-share Markets - In 2025, the Hong Kong stock market showed significant support for the A-share market, with the Hang Seng and Hang Seng Tech indices rising by 27.8% and 23.5%, respectively. The IPO market raised a total of HKD 285.8 billion, reclaiming the top position globally [2]. - The A-share market also performed well, with the Shanghai and Sci-Tech 50 indices increasing by 18.4% and 35.9%, respectively, and the total market capitalization surpassing CNY 100 trillion. The average daily trading volume reached CNY 1.7 trillion, a year-on-year increase of 61.9% [2]. Group 3: Specific Recommendations - The article outlines four specific recommendations to enhance market conditions: 1. Utilize the "China Investment" leverage by lowering the eligibility criteria for Hong Kong Stock Connect investors and expanding QDII and RQDII mechanisms to individual clients, which could alleviate the A-H share premium issue and boost market valuation [3]. 2. Focus on the "Investing in China" theme to attract global capital by improving the convenience for foreign investors in mainland markets and aligning trading rules with international standards [4]. 3. Reform the market-making system to enhance liquidity and effectiveness, addressing the lack of market-making functions in mainland markets and the liquidity issues of small-cap stocks in Hong Kong [4]. 4. Strengthen the risk prevention system to avoid systemic risks by monitoring high-risk areas and ensuring market leverage remains within safe limits [4].

Core Viewpoint - Dongwu Securities maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388), anticipating continued growth in IPO issuance and an active trading environment in the Hong Kong market [1] Financial Performance - In 2025, Hong Kong Exchanges achieved revenue and other income of HKD 29.2 billion, a year-on-year increase of 30%, with a net profit attributable to shareholders of HKD 17.8 billion, up 36% [1] - The company's return on equity (ROE) for 2025 was 33.2%, an increase of 7.3 percentage points year-on-year [1] - For Q4 2025, revenue and other income were HKD 7.3 billion, a 15% increase year-on-year but a 6% decrease quarter-on-quarter [1] Trading Volume and IPO Activity - The cash market segment generated revenue of HKD 14.7 billion in 2025, a 56% increase, with a daily average trading volume up 93% to HKD 232 billion [2] - The number of IPOs reached 119 in 2025, a 68% increase, with total fundraising amounting to HKD 286.9 billion, a 226% year-on-year increase [2] - The backlog of IPO applications in Hong Kong increased nearly threefold year-on-year by the end of 2025 [2] Derivatives Market - The revenue from the equity securities and financial derivatives segment was HKD 6.9 billion, an 11% increase, driven by higher trading volumes and increased listing activities [3] - The average daily trading volume of derivatives contracts reached 1.66 million, a 7% increase year-on-year [3] Commodity and Data Segments - The commodities segment reported revenue of HKD 3.2 billion, a 14% increase, with average daily trading volume in LME fees up 8% [4] - The data and connectivity segment generated revenue of HKD 2.3 billion, a 7% increase, attributed to higher usage of trading network services [5] Company Projects - Revenue from company projects was HKD 2.2 billion, a 17% increase, with internal investment income of HKD 1.9 billion, up 7% [6] - The annualized net investment return was 5.06%, a decrease of 3 basis points year-on-year [6]

Group 1 - The core viewpoint of the report is that the company, Prosperity Industrial Trust (00778), is expected to announce its full-year results for 2025 in early March 2026, with a maintained buy rating and a target price of HKD 5.92 [1] - The overall occupancy rate of Prosperity is anticipated to see a slight improvement in the second half of 2025, aided by recent asset enhancement projects and the introduction of new dining options and fitness centers [2] - The retail sales market is showing signs of recovery, primarily driven by an increase in tourists, which is benefiting sales in core areas and non-essential goods [2] Group 2 - The company has slightly adjusted its revenue and distribution forecasts for 2025-2027 due to the ongoing stabilization of the Hong Kong retail market, but expects improvements in stock and real estate performance to contribute to wealth effects in the medium to long term [3] - The target price remains unchanged, and the company’s retail portfolio, focused on essential consumption, is expected to maintain resilience and high occupancy rates [4] - The potential inclusion in the Stock Connect program is viewed as a key catalyst for the next 12 months, with the impact of interest rate cuts expected to outweigh the effects of rental adjustments [4]

Core Insights - The Hong Kong stock market shows clear signs of recovery in 2025, with major indices steadily rising and IPO fundraising reaching a global peak, indicating a vibrant trading environment [2][3]. Group 1: Market Developments - The People's Bank of China is set to deepen financial market connectivity between the mainland and Hong Kong, supporting the offshore RMB market and enhancing cross-border financial services [3]. - As of December 19, 2025, 106 companies have listed on the Hong Kong Stock Exchange, raising a total of 274.6 billion HKD, leading all global exchanges [4]. - The introduction of the Hang Seng Biotechnology Index futures on November 28 enhances the financial tools available for the biotech sector, improving the financing environment for companies in this field [5]. Group 2: Policy Impact - Recent measures from the China Securities Regulatory Commission, including the expansion of eligible products for the Stock Connect program, have broadened investment opportunities for asset management firms in Hong Kong [4]. - The government's plans to launch cross-border RMB repurchase agreements are seen as a significant benefit for RMB bond projects, enhancing the attractiveness of the bond market [4]. Group 3: Industry Trends - The Hong Kong capital market is experiencing a structural upgrade, shifting from traditional sectors like finance and real estate to a focus on new economy enterprises, with a diverse range of products and funding channels [7]. - The number of new listings in Hong Kong has increased significantly, with 93 companies listed in the first 11 months of the year, a 52% rise compared to the previous year [7]. - The average daily trading volume of exchange-traded funds (ETFs) has surged by 116% year-on-year, reflecting increased investor interest and market activity [8].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has achieved record highs in trading volumes and financial performance in the third quarter of 2025, driven by increased market activity and a significant number of IPO applications [1][2][6]. Financial Performance - In Q3 2025, HKEX reported revenue and other income of HKD 77.75 billion, a year-on-year increase of 45% and a quarter-on-quarter increase of 8% [2][3]. - The net profit attributable to shareholders for Q3 2025 was HKD 49 billion, reflecting a 56% year-on-year increase and a 10% quarter-on-quarter increase [2][3]. - For the first three quarters of 2025, total revenue and other income reached HKD 218.51 billion, up 37% year-on-year, while net profit attributable to shareholders was HKD 134.19 billion, a 45% increase year-on-year [2][3]. Trading Activity - The average daily trading volume in the cash market reached HKD 2,564 billion, more than double that of the same period in 2024 [3]. - The average daily trading volume for derivatives reached 170,000 contracts, an 11% increase year-on-year [3]. - The average daily trading amounts for the Northbound and Southbound Stock Connects were HKD 206.4 billion and HKD 125.94 billion, respectively, marking increases of 67% and 229% year-on-year [4]. IPO Market - As of September 30, 2025, there were 297 IPO applications in Hong Kong, with total IPO financing amounting to HKD 1,883 billion, more than three times that of the same period in 2024 [5][6]. - The number of new listings reached 69, with total fundraising of HKD 1,883 billion, the highest in three years [6]. Institutional Investment - HKEX has seen increased holdings from major institutions such as BlackRock and Citigroup, each acquiring 63.5 million shares, reaching a 5.01% ownership stake [7]. - Other funds, including passive index funds, have also increased their stakes in HKEX, indicating strong institutional confidence [7].

Core Viewpoint - The Hong Kong Stock Exchange's "Special Line for Technology Companies" has significantly improved the efficiency of IPOs for tech and biotech firms, with 68 companies listed in the first six months since its launch [1] Group 1: Market Performance - As of November 5, 2023, the total amount raised through IPOs in Hong Kong reached 230.76 billion HKD, representing a year-on-year increase of 223.53% [1] - On November 6, 2023, four new stocks were listed, including two companies that submitted applications through the "Special Line for Technology Companies" [1] Group 2: Diverse Listing Entities - The current pipeline includes companies from various sectors such as robotics, biomedicine, food and beverage, and automotive parts, including unicorns and leading A-share companies [2] - Lush Comfort Ltd., the first company headquartered in the Middle East to list in Hong Kong, plans to raise 2.38 billion HKD to enhance production capacity and brand influence [2] Group 3: Market Structure and Liquidity - The gathering of diverse listing entities is expected to deepen cooperation between mainland and Hong Kong capital markets, enhancing market structure and liquidity [3] - The average daily trading volume in the Hong Kong stock market reached a record high of 286.4 billion HKD in Q3 2023, more than double that of the same period last year [5] Group 4: Policy and Future Outlook - The China Securities Regulatory Commission aims to enhance practical cooperation between mainland and Hong Kong capital markets, which will facilitate the listing process for tech companies [6] - The introduction of more reform measures is anticipated to further promote the listing of technology companies in Hong Kong [6]

Macro Economy - The 138th Canton Fair concluded on November 4, achieving a record total of $25.65 billion in intended export transactions, showcasing the vitality of China's foreign trade innovation [4] - The People's Bank of China announced a 700 billion yuan reverse repurchase operation to maintain ample liquidity in the banking system, with a term of 3 months [4] - The National Health Commission and other departments released implementation opinions to promote and regulate the application of "AI + healthcare," emphasizing the acceleration of smart therapy technology [4] Investment News - The Vice Chairman of the China Securities Regulatory Commission emphasized further deepening practical cooperation between mainland and Hong Kong capital markets, aiming to enhance the efficiency of overseas listing filings [9] - Hong Kong's stock market saw an average daily trading volume exceeding $32 billion this year, doubling year-on-year, with 80 IPOs raising over $26 billion in the first ten months, ranking first globally [9] - The Shenzhen Stock Exchange reported that companies in the Shenzhen market achieved a total revenue of 15.72 trillion yuan in the first three quarters, a year-on-year increase of 4.31%, with net profit reaching 903.02 billion yuan, up 9.69% [10] Company Movements - Ele.me's app has been rebranded to "Taobao Flash Purchase," currently in a gray testing phase for select users [13] - Fuyou Glass changed its legal representative from Cao Dewang to his son, Cao Hui [14] - Lens Technology and Yujian Technology have entered into a deep strategic cooperation agreement, with Lens committing to purchase 1,000 intelligent robots by 2025 [15] International Dynamics - On November 4, the U.S. Senate failed to pass a temporary funding bill, leading to a government shutdown that may become the longest in U.S. history [17] - The European Commission announced the annual enlargement plan, confirming progress made by potential new member states, including Montenegro, Albania, Ukraine, Moldova, Serbia, North Macedonia, Bosnia and Herzegovina, Turkey, and Georgia [17]

Core Viewpoint - The "Southbound ETF Connect" is expanding with the addition of 6 new ETFs, increasing the total from 17 to 23, effective from November 10, 2023, enhancing product diversity and including non-Hong Kong stock assets for the first time [1][2][3]. Group 1: Expansion Details - The new ETFs added include 工银南方中国, 南方恒生生科, 招商恒生科技, 南方港股通, 南方东西精选, and 南方港美科技, which will broaden the investment options available to investors [2]. - The 南方东西精选 ETF includes high-dividend stocks listed on the Hong Kong Stock Exchange and top U.S. large-cap stocks based on free cash flow yield [2]. - The 南方港美科技 ETF tracks top technology companies in both Hong Kong and the U.S., including major players like Alphabet, Amazon, and Apple [2]. Group 2: Market Impact - Since the launch of the ETF Connect in July 2022, the average daily trading volume for the Southbound ETF Connect has exceeded 4.2 billion HKD, with a year-on-year increase of 128% [3]. - The expansion is expected to enhance product selection for investors, facilitating more efficient asset diversification in Hong Kong [3][4]. - The Southbound ETF Connect offers advantages such as longer trading hours, T+0 trading, and lower premium rates due to a mature market-making system [4]. Group 3: Future Outlook - The inclusion of U.S. stock assets in the ETFs allows investors to access global core assets with lower barriers, promoting risk diversification and encouraging product innovation [5]. - The Southbound ETF Connect is anticipated to continue growing in terms of product quantity and structure as cross-border investment opportunities expand [4].

Core Insights - The "Southbound ETF Connect" has announced an expansion, increasing the number of ETFs from 17 to 23, effective from November 10, 2025 [1] Group 1: Expansion Details - The latest expansion includes the addition of 6 new ETFs [1] - The asset categories under the Southbound ETF Connect will become more diverse, including ETFs that contain non-Hong Kong assets for the first time [1] Group 2: Product Offerings - New ETFs include the Southern Eastern FTSE East-West Stock Selection ETF and the Southern Eastern Hang Seng Hong Kong-US Technology ETF, enhancing product choices for investors [1] - This expansion allows investors to diversify their assets in Hong Kong more efficiently [1]

Core Insights - The article highlights the continuous optimization of the Hong Kong and Shanghai stock market connectivity mechanisms, particularly through the Stock Connect programs, which have significantly increased cross-border trading volumes and investor participation [1][5]. Group 1: Stock Connect Mechanism - As of September 2023, foreign capital through the Shanghai Stock Connect has reached a cumulative trading volume of 90.1 trillion RMB, with daily trading volume increasing from 4.7 billion RMB in the first month of operation to 145.6 billion RMB by September 2025 [1][5]. - The Shanghai Stock Exchange plans to further enhance the Stock Connect mechanism in collaboration with the Hong Kong Stock Exchange, aiming to improve market efficiency and attract more international investors [1][7]. Group 2: IPO and Market Performance - The Hong Kong Stock Exchange has seen a significant increase in IPO activity, with total financing reaching 182.9 billion HKD by September 2023, more than doubling compared to the same period in 2024 [2]. - Nearly half of the companies currently applying for listing are technology firms, reflecting a shift in market dynamics and investor interest [2][3]. Group 3: Trading Volume and Market Growth - The average daily trading volume in the Hong Kong securities market reached 256.4 billion HKD by September 2023, a 126% year-on-year increase [3]. - The average daily trading volume for the Shanghai and Shenzhen Stock Connects also hit record highs, with the Shanghai Stock Connect reaching 206.4 billion RMB, a 68% increase year-on-year [3][6]. Group 4: Future Developments - The Hong Kong Stock Exchange is preparing to introduce new measures for the Stock Connect, including the inclusion of REITs and a block trading mechanism, to provide more investment options for domestic and international investors [4][5]. - The exchange aims to enhance its international competitiveness and expand the offshore RMB product ecosystem, supporting the internationalization of the RMB [5][7].