Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has achieved record-high revenues and profits in the first three quarters of 2025, driven by increased trading activity in the Hong Kong stock market [4][5]. Financial Performance - Total revenue for the first three quarters reached HKD 21.85 billion, a year-on-year increase of 36.6%, with the third quarter showing a growth of 44.7% year-on-year and 7.7% quarter-on-quarter [4][5]. - Net profit attributable to shareholders was HKD 13.42 billion, up 44.8% year-on-year, with the third quarter seeing a 55.8% year-on-year increase [4][5]. - EBITDA margin stood at 79%, reflecting a 5 percentage point increase year-on-year [4]. Revenue Breakdown 1. Trading fees, system usage fees, and settlement fees totaled HKD 13.1 billion, accounting for 60.0% of total revenue, with a year-on-year increase of 60.5% [5]. 2. Investment income netted HKD 3.89 billion, representing 17.8% of total revenue, with a year-on-year increase of 4.4% [6]. 3. Listing fees amounted to HKD 1.27 billion, making up 5.8% of total revenue, with a year-on-year increase of 17.1% [7]. Market Activity - The average daily trading volume for equity securities reached HKD 238.7 billion, a record high, with a year-on-year increase of 132.4% [8]. - The derivatives market saw an average daily trading volume of HKD 17.7 billion, up 67.0% year-on-year [8]. - Northbound and southbound trading average daily transaction amounts were RMB 206.4 billion and HKD 125.9 billion, respectively, both record highs [8].

Core Viewpoint - The report from Guolian Minsheng indicates that the Hong Kong Stock Exchange (HKEX) is expected to see significant revenue and profit growth in the coming years, driven by improved market activity and strong performance in various segments [1][2]. Financial Performance - For the first nine months of 2025, HKEX achieved total revenue and other income of HKD 218.5 billion, representing a year-on-year increase of 37% [2][3]. - The net profit attributable to shareholders for the same period was HKD 134.2 billion, up 45% year-on-year [2][3]. - In Q3 2025, the company reported revenue and other income of HKD 77.8 billion, a 45% increase year-on-year and an 8% increase quarter-on-quarter [2]. Segment Performance - Trading and trading system usage fees reached HKD 78.31 billion, up 57% year-on-year, due to record high average daily trading (ADT) in the cash and derivatives markets [4]. - Clearing and settlement fees amounted to HKD 52.73 billion, a 66% increase year-on-year, driven by record high average daily trading volumes in the Stock Connect program [4]. - Listing fees were HKD 12.68 billion, reflecting a 17% year-on-year increase, supported by strong capital raising activities in the Hong Kong market [4]. - Investment income netted HKD 38.93 billion, a 4% increase year-on-year, although the annualized investment return rate decreased to 4.67% [4]. Market Activity - The cash market showed significant improvement, with the average daily trading volume reaching HKD 2,564 billion for the first nine months of 2025, a 126% increase year-on-year [5]. - The Northbound ADT was HKD 2,064 billion, up 67% year-on-year, while the Southbound ADT reached HKD 1,259 billion, a 229% increase [5]. - The ETP market also performed well, with an ADT of HKD 378 billion, reflecting a 145% year-on-year increase [5]. - In the IPO market, HKEX saw 69 new listings raising HKD 1,883 billion, a 239% increase year-on-year, with a strong pipeline of 297 applications pending as of Q3 2025 [5].

Core Viewpoint - The company expects continued improvement in trading activity in the Hong Kong stock market, projecting total revenue and net profit growth for Hong Kong Exchanges and Clearing Limited (HKEX) in the coming years [1] Financial Performance - For the first nine months of 2025, the company reported total revenue and other income of HKD 218.5 billion, a year-on-year increase of 37%, and a net profit attributable to shareholders of HKD 134.2 billion, up 45% [2][3] - In Q3 2025, the company achieved revenue and other income of HKD 77.8 billion, reflecting a year-on-year increase of 45% and a quarter-on-quarter increase of 8%, with net profit of HKD 49.0 billion, up 56% year-on-year and 10% quarter-on-quarter [2] Segment Performance - The company reported significant growth across all business segments for the first nine months of 2025: - Trading and trading system usage fees reached HKD 78.31 billion, up 57% year-on-year, driven by record average daily trading (ADT) in the cash and derivatives markets [4] - Clearing and settlement fees totaled HKD 52.73 billion, a 66% increase year-on-year, due to record high average daily trading volumes in the Stock Connect program [4] - Listing fees amounted to HKD 12.68 billion, up 17% year-on-year, supported by strong capital raising activities in the Hong Kong stock market [4] - Net investment income was HKD 38.93 billion, a 4% increase year-on-year, with a decline in annualized investment yield for the company's funds [4] Market Outlook - The Hong Kong stock market is experiencing improved trading activity, which is expected to sustain the company's annual performance growth: - The cash market ADT reached HKD 2,564 billion for the first nine months of 2025, a 126% year-on-year increase, with northbound ADT at HKD 2,064 billion, up 67%, and southbound ADT at HKD 1,259 billion, up 229% [5] - The Exchange-Traded Products (ETP) market also showed positive trends, with ADT reaching HKD 378 billion, a 145% year-on-year increase [5] - The IPO market remained robust, with 69 companies listed on the main board, raising HKD 1,883 billion, a 239% increase year-on-year, and a strong pipeline of 297 IPO applications pending as of the end of Q3 2025 [5]

Core Viewpoint - The report from Shenwan Hongyuan raises the profit forecast for Hong Kong Exchanges and Clearing Limited (00388) and maintains a "buy" rating, citing strong trading activity in the Hong Kong stock market and expectations for continued market engagement due to the return of quality Chinese assets and the extension of cross-border connectivity to IPOs [1][2]. Financial Performance - For the first nine months of 2025 (9M25), Hong Kong Exchanges reported total revenue of HKD 21.85 billion, a year-on-year increase of 37%, with main revenue at HKD 20.44 billion, up 41% [2]. - Net profit for 9M25 reached HKD 13.42 billion, reflecting a year-on-year growth of 45% [2]. - In the third quarter of 2025 (3Q25), main revenue was HKD 7.48 billion, up 54% year-on-year and 13% quarter-on-quarter, while net profit was HKD 4.90 billion, increasing by 56% year-on-year and 10% quarter-on-quarter [2]. Revenue Breakdown - Revenue sources for 9M25 include: trading fees at HKD 7.83 billion (39%), clearing and settlement fees at HKD 5.27 billion (26%), investment income at HKD 3.89 billion (19%), listing fees at HKD 1.27 billion (6%), and market data fees at HKD 0.87 billion (4%) [3]. - Year-on-year growth rates for various fees include: trading fees +57%, clearing and settlement fees +66%, listing fees +17%, and market data fees +8% [3]. Trading Activity - The average daily turnover (ADT) for Hong Kong stocks in 9M25 was HKD 238.7 billion, a year-on-year increase of 132%, with 3Q25 ADT reaching a record high of HKD 267.9 billion, up 150% year-on-year [3]. - Southbound ADT for 9M25 was HKD 125.9 billion, up 229%, while northbound ADT was RMB 206.4 billion, up 67% [3]. IPO Market - In 9M25, the Hong Kong IPO market raised HKD 188.3 billion, three times the amount raised in the same period last year, with 69 new IPOs [5]. - As of the end of 3Q25, there were 297 IPO applications in process, compared to 84 at the end of 2024 [5]. Investment Income - Investment income for 3Q25 was HKD 1.02 billion, down 16% year-on-year and 34% quarter-on-quarter, contributing 21% to net profit [6]. - The decline in investment income was attributed to reduced external fund composition and narrowed exchange rate gains [6].

Investment Rating - The report maintains a "Buy" rating for the company [3][8] Core Insights - The company reported a total revenue of HKD 21.85 billion for the first nine months of 2025, representing a year-on-year increase of 37%. The main revenue reached HKD 20.44 billion, up 41% year-on-year, while net profit was HKD 13.42 billion, reflecting a 45% increase year-on-year [6][8] - The report highlights strong trading and settlement fee income driven by active market transactions, while investment income showed a temporary decline [2][8] - The report anticipates continued active trading in the Hong Kong stock market, supported by the return of quality Chinese assets and the extension of connectivity between mainland China and Hong Kong [8] Financial Data and Earnings Forecast - The company’s projected financials for 2023 to 2027 are as follows: - Revenue: HKD 20.52 billion (2023), HKD 22.37 billion (2024), HKD 28.27 billion (2025E), HKD 31.43 billion (2026E), HKD 32.44 billion (2027E) - Net profit: HKD 11.86 billion (2023), HKD 13.05 billion (2024), HKD 17.73 billion (2025E), HKD 19.76 billion (2026E), HKD 20.76 billion (2027E) - Earnings per share: HKD 9.36 (2023), HKD 10.29 (2024), HKD 13.98 (2025E), HKD 15.58 (2026E), HKD 16.37 (2027E) [7][9] - The report indicates a significant increase in trading fees and settlement fees, with trading fees reaching HKD 7.81 billion (39% of total revenue) and settlement fees at HKD 5.27 billion (26% of total revenue) for the first nine months of 2025 [8][9] Market Performance - The report notes that the Hong Kong stock market's IPO fundraising reached HKD 188.3 billion in the first nine months of 2025, which is more than three times the amount from the same period last year [8] - The average daily trading (ADT) for Hong Kong stocks was HKD 2.387 trillion, a year-on-year increase of 132%, with a record high of HKD 2.679 trillion in the third quarter of 2025 [8]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record-high revenues and profits in the first half of 2025, driven by increased trading activity in the stock market and derivatives [1][4]. Financial Performance - Total revenue for the first half of 2025 reached HKD 14.08 billion, a year-on-year increase of 32.5%, with Q2 revenue growing by 33.2% year-on-year and 5.3% quarter-on-quarter to HKD 7.22 billion [1]. - Net profit attributable to shareholders was HKD 8.52 billion, up 39.1% year-on-year, with Q2 net profit increasing by 40.8% year-on-year and 9.0% quarter-on-quarter to HKD 4.44 billion [1]. - EBITDA margin stood at 79%, reflecting a 6 percentage point increase year-on-year [1]. Revenue Breakdown - Trading fees, system usage fees, and settlement fees totaled HKD 8.06 billion, accounting for 57.3% of total revenue, with a year-on-year increase of 48.9% [2]. - Investment income netted HKD 2.88 billion, representing 20.4% of total revenue, with a year-on-year growth of 14.0% [2]. - Listing fee income was HKD 0.82 billion, making up 5.8% of total revenue, and increased by 12.6% year-on-year [2]. Market Activity - Average daily trading volume for stock securities reached HKD 222.8 billion, a half-year record, with a year-on-year increase of 122.1% [3]. - The derivatives market saw an average daily trading volume of HKD 17.4 billion, up 72.3% year-on-year [3]. - Northbound and southbound trading average daily transaction amounts were RMB 171.3 billion and HKD 111.0 billion, respectively, both achieving half-year highs [3]. New Listings - The number of new listings in Hong Kong reached 44 in the first half of 2025, a 46.7% increase year-on-year, raising a total of HKD 109.4 billion, which is a 716.4% increase [4]. - As of the end of Q2 2025, there were 207 listing applications pending, representing a 146.4% increase from the end of the previous year [4]. Investment Outlook - The company is viewed as a rare asset with balanced growth potential, maintaining a "buy" rating [4]. - The financial performance in the first half of 2025 has led to an upward revision of net profit forecasts for 2025-2027 [4].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved record high revenue and profit in the first half of 2025, with total revenue of 14.08 billion HKD, a year-on-year increase of 32.5% [5] - The increase in revenue was primarily driven by heightened trading activity in the Hong Kong stock market, with average daily trading volume rising by 117.6% to 240.2 billion HKD [5][7] - The report projects continued growth in the second half of 2025, supported by favorable market conditions and increased listings from mainland companies [8] Financial Performance Summary - Total revenue for the first half of 2025 was 14.08 billion HKD, with a net profit of 8.52 billion HKD, reflecting a year-on-year growth of 39.1% [5] - The EBITDA margin improved to 79%, up by 6 percentage points compared to the previous year [5] - The company’s investment income netted 2.88 billion HKD, a 14.0% increase year-on-year, benefiting from non-recurring foreign exchange gains [6] Market Activity Summary - The average daily trading volume for stock securities reached 222.8 billion HKD, marking a 122.1% increase year-on-year [7] - The derivatives market also saw significant growth, with average daily trading volume increasing by 72.3% [7] - The number of new listings in Hong Kong rose to 44 in the first half of 2025, a 46.7% increase year-on-year, with total funds raised amounting to 109.4 billion HKD [8] Earnings Forecast - The report revises the company's net profit forecasts for 2025-2027 to 17.3 billion, 18.5 billion, and 19.5 billion HKD respectively, reflecting an optimistic outlook based on current performance [8][9]

Core Viewpoints - Hong Kong Stock Exchange (HKEX) reported a significant increase in market activity, with the average daily turnover (ADT) reaching HKD 2,376.77 billion in Q2 2025, a year-on-year increase of 95.46% [1][2][3] - The influx of southbound capital has contributed to high trading volumes, with a total net purchase of HKD 2,728.63 billion from April to June 2025, marking a 24.77% increase year-on-year [3][4] - The number of new IPOs in Q2 2025 rose to 27, up by 9 from the same period last year, with total IPO fundraising amounting to HKD 880.43 billion, a year-on-year increase of 906.67% [1][3][5] Market Performance - As of June 2025, the market capitalization of the Hong Kong securities market stood at HKD 42.68 trillion, reflecting a 6.84% increase quarter-on-quarter and a 32.82% increase year-on-year [2] - The Hang Seng Index increased by 4.12% in Q2 2025, while the Hang Seng Tech Index experienced a slight decline of 1.70% [2] IPO and Trading Activity - The surge in IPO activity was driven by major A-share companies listing in Hong Kong, including notable firms like CATL and Hengrui Medicine, which collectively raised HKD 737.72 billion, accounting for 83.79% of the total IPO fundraising in Q2 [3][5] - Derivatives and commodity contracts saw increased trading volumes due to heightened demand for risk hedging, with average daily trading volumes for futures and options reaching 1.54 million contracts in Q2, a 15.34% increase year-on-year [3][4] Investment and Future Outlook - Despite a decline in investment returns due to lower HIBOR rates, the overall yield remains high, with expectations of continued growth in Q2 performance [4][5] - The company maintains a "buy" rating, projecting a target price of HKD 480.08 per share based on a 40x PE ratio for 2025, indicating a favorable outlook for future market activity and valuation recovery [7]