Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported better-than-expected performance for the first three quarters of 2025, with significant growth in both revenue and net profit driven by increased market trading activity [1][5] Financial Performance - For Q3 2025, HKEX achieved revenue and other income of HKD 7.775 billion, a year-on-year increase of 44.73% and a quarter-on-quarter increase of 7.70% [1] - The net profit attributable to shareholders for Q3 was HKD 4.900 billion, reflecting a year-on-year growth of 55.80% and a quarter-on-quarter growth of 10.31% [1] - Total revenue and other income for the first three quarters reached HKD 21.851 billion, up 36.63% year-on-year, marking a record high [1] Revenue Breakdown - In Q3 2025, trading fees and system usage fees, along with settlement and custody fees, accounted for HKD 5.484 billion, representing 70.53% of total revenue, with a year-on-year increase of 77.30% [1] - For the first three quarters, these fees totaled HKD 14.213 billion, making up 65.05% of total revenue, with a year-on-year increase of 57.05% [1] Market Activity - The trading activity in the Hong Kong stock market reached historical highs, with average daily trading (ADT) for Q3 2025 increasing by 144.80% year-on-year to HKD 2,863.58 billion [1] - Southbound capital inflows from mainland China totaled HKD 1,084.172 billion from January to September 2025, a year-on-year increase of 135.01% [1] IPO Activity - In the first three quarters of 2025, HKEX saw 68 new listings, raising HKD 187.745 billion, a year-on-year increase of 262.51% [2] - Q3 2025 alone had 25 new listings, with a fundraising amount of HKD 78.865 billion, up 86.79% year-on-year [2] Investment Income - Despite a decline in HIBOR rates due to the Federal Reserve's actions, investment income remained positive, with net investment income for the first three quarters reaching HKD 3.893 billion, a year-on-year increase of 4.43% [3] - The annualized net investment return for margin and clearing funds was 1.98% and 1.85%, respectively, showing a decline compared to the previous year [3] Future Outlook - The company expects continued high performance in 2025, supported by the Federal Reserve's interest rate cuts, ongoing southbound capital inflows, and the relative valuation advantage of Hong Kong stocks [4][6] - The projected target price for HKEX is HKD 543 per share, maintaining a "buy" rating based on historical valuation levels and market conditions [5][6]

Group 1 - The Hong Kong innovative drug sector is experiencing a significant pullback, with the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index dropping nearly 4% and most constituent stocks declining [1] - Major stocks such as Kelun-Botai Biopharmaceutical, CanSino Biologics, and Zai Lab fell over 5%, while China Biologic Products and 3SBio dropped over 4% [1] - The Hong Kong Stock Connect Innovative Drug ETF (520880) saw a price drop of over 4% but later reduced its decline, indicating positive buying sentiment with a real-time premium rate exceeding 0.4% [1] Group 2 - The Hang Seng Hong Kong Stock Connect Innovative Drug Select Index has risen 101.58% year-to-date as of July 31, significantly outperforming the Hang Seng Index and Hang Seng Technology Index by 78.08 and 79.53 percentage points, respectively [2] - The ETF is the first in the market to track this index, focusing on the innovative drug industry chain with a high concentration of leading companies [2]

Group 1 - The core viewpoint of the articles indicates that the Hong Kong stock market, particularly the internet sector, is experiencing a rebound, with significant gains in major tech stocks and ETFs [1][2][4] - The Hong Kong Internet ETF (513770) has seen a strong performance, with a year-to-date increase of over 35% as of the end of July, outperforming the Hang Seng Tech Index [4][5] - Recent data shows that the Hong Kong Internet ETF has attracted substantial capital inflow, totaling 773 million yuan over ten consecutive days, reaching a record high fund size of nearly 8.7 billion yuan [2][4] Group 2 - The liquidity situation in the Hong Kong market has improved, with the interbank lending rates stabilizing and external liquidity conditions becoming more favorable, supporting a potential phase of price recovery [2] - Major holdings in the Hong Kong Internet ETF include Xiaomi, Tencent, Alibaba, and Meituan, which collectively account for over 54% of the fund's total weight [5][6] - The average daily trading volume of the Hong Kong Internet ETF has been 593 million yuan, indicating strong liquidity and the ability to support intraday trading without restrictions [7]

Group 1 - The non-bank sector showed collective strength, with the CSI All Share Securities Company Index and Hong Kong Securities Index both rising by 0.3%, while the CSI 300 Non-Bank Financial Index increased by 0.2%. The CSI Bank Index, however, fell by 0.2% [1] - As of yesterday, the Hong Kong Securities ETF (513090) experienced a net inflow of 11.7 billion yuan over the past month, bringing its latest scale to 23.4 billion yuan [1] - GF Securities expressed optimism regarding the improvement in risk appetite and liquidity in the Hong Kong stock market, benefiting from increased support for "A+H" listings, potential repatriation of Chinese concept stocks, and the advancement of the Hong Kong stock connect program [1] Group 2 - The CSI 300 Non-Bank Financial Index consists of 27 stocks from the CSI 300 Index that belong to the capital market, other financial sectors, and the insurance industry, with the insurance sector accounting for over 35%, making it one of the indices with the highest insurance sector representation in the market [3] - The Hong Kong Securities ETF tracks the CSI Hong Kong Securities Investment Theme Index [4] - The index includes stocks from asset management, custodial banks, investment banking, and brokerage industries within the scope of the Hong Kong Stock Connect, as well as the Hong Kong Stock Exchange as a sample stock [5]

Core Insights - On July 30, the A-share market experienced fluctuations with the three major indices showing mixed results, while stock ETFs saw a net inflow of 7.5 billion yuan [1][2][3] Group 1: Stock ETF Inflows - On July 30, stock ETFs had a net inflow of 7.5 billion yuan, with significant inflows into the ChiNext index and Hong Kong-related ETFs covering sectors such as technology, finance, pharmaceuticals, and the internet [1][3] - The top three stock ETFs by net inflow were the E Fund ChiNext ETF (1.542 billion yuan), E Fund Hong Kong Securities ETF (976 million yuan), and the Fortune Hong Kong Internet ETF (811 million yuan) [3][4] - In July, net inflows into Hong Kong securities, internet, pharmaceuticals, and technology sectors reached 30 billion yuan [2][4] Group 2: Stock ETF Outflows - On the same day, 20 stock ETFs experienced net outflows exceeding 1 billion yuan, with the CSI 300, CSI 500, and CSI A500 ETFs among the hardest hit [6][7] - The top three stock ETFs by net outflow were the CSI 300 ETF (1.345 billion yuan), pharmaceutical ETFs (629 million yuan), and CSI 500 ETF (415 million yuan) [6][7] - The total net outflow from the top 20 stock ETFs included four CSI 300 ETFs with a combined outflow of over 2.1 billion yuan and four pharmaceutical-related ETFs with a total outflow exceeding 1 billion yuan [6][7]

| 该指数由A股中市值大、流动性 | 今日该指数涨跌 | 该指数市净率 | 以指数目 发布以来们 | | --- | --- | --- | --- | | 好的50只证券行业股票组成,反 | | | | | 映A股证券行业股票的整体表现 | -1.2% | 1.6倍 | 38. | | | | 截至收盘，中证银行指数上涨0.6%，沪深300非银行金融指数上涨0.01%，中证全指证券公司指数下跌1.2%，香港证券指数下跌1.6%。Wind数据显示，香港 证券ETF（513090）连续17个交易日成交额超100亿，该产品月内规模增超130亿元，最新规模达230亿元，较月初实现翻倍。 广发证券表示，看好港股风险偏好和资金面持续改善。受益于"A+H"上市支持力度提升、中概股潜在回流空间增大以及港股互联互通进程的推进，港股流通 性有望持续改善，服务港股IPO和市场交易的券商有望受益。 | 该指数由A股中市值大、流动性 | 今日该指数涨跌 | 该指数市净率 | 该指数自 发布以来仁 | | --- | --- | --- | --- | | 好的42只银行业股票组成,反映 | | | | | A股银行业股票的整体表现 ...

Core Viewpoint - The valuation of Hong Kong stocks has significantly recovered, and further expansion may be limited, with future growth relying more on corporate earnings rather than valuation [1][3]. Group 1: Market Liquidity - Continuous improvement in liquidity has provided strong support for the upward movement of the Hong Kong stock market this year [2]. - The improvement in liquidity is attributed to factors such as liquidity injections by the Monetary Authority, sustained net inflows from southbound funds and foreign capital, a booming IPO market, and accelerated share buybacks by Hong Kong companies [2]. - Despite a recent decrease in the banking system's surplus, the overall liquidity environment remains loose, with the one-month HIBOR around 1% [2]. Group 2: Earnings Growth - Future upward movement in the market will depend more on corporate earnings growth, as the expected profit growth rate for the Hang Seng Index is relatively low for the next two years [3]. - The impact of tariff policies will gradually reflect in the fundamentals, and the strong resilience of the domestic economy in the first half of the year may weaken short-term policy expectations [3]. - Identifying sectors and stocks that are less affected by tariffs and have strong profit growth potential through AI development is crucial for better returns [3]. Group 3: Structural Market Trends - The market is expected to exhibit a structural trend, with accelerated sector rotation before new trend investment themes emerge [4]. - As the half-year earnings reporting period approaches, market participants have high expectations for corporate performance, which may lead to a rotation of funds from crowded sectors like new consumption, innovative pharmaceuticals, and banking to lower-crowded sectors with better earnings prospects, such as technology [4]. - If market sentiment remains high and liquidity is ample, even if crowded sectors experience a pullback, it will not hinder the medium-term positive outlook for the Hong Kong stock market [4].

Group 1: Market Liquidity and ETP Growth - The liquidity in the Hong Kong stock market has significantly improved, with the average daily trading amount reaching HKD 240.2 billion in the first half of 2025, a 118% increase from HKD 110.4 billion in the same period last year [1] - There are currently over 210 Exchange Traded Products (ETPs) listed in Hong Kong, with total managed assets nearing HKD 510 billion, reflecting a 30% increase since 2020 [1] - The daily trading volume of ETPs has increased fivefold to approximately HKD 40 billion, indicating a strong growth in this segment [1] Group 2: IPO Activity and Market Sentiment - The Hong Kong stock market has seen a positive trend, with the Hang Seng Index rising 20% in the first half of 2025, marking the largest increase for this period historically [2] - There were 44 new listings in the first half of 2025, a 47% increase from 30 in the same period last year, with total IPO fundraising amounting to HKD 107.1 billion, up 699% from HKD 13.4 billion [2] - The total fundraising amount in the first half of 2025 reached HKD 280.8 billion, a 322% increase from HKD 66.5 billion in the previous year [2] Group 3: Factors Driving IPO Market - The robust IPO market in Hong Kong is attributed to regulatory reforms by the China Securities Regulatory Commission and the Hong Kong Stock Exchange, which have facilitated easier access for companies to list [3] - Key sectors such as technology, healthcare, consumer goods, and green economy have shown strong performance, boosting investor confidence [3] Group 4: ETP Market Innovations - The ETP market in Hong Kong has been innovative, with products linked to various asset classes including stocks, fixed income, commodities, currencies, and digital assets [3] - The share of ETP trading volume in the overall market has increased from less than 5% five years ago to approximately 17% in the first five months of this year [3] Group 5: ETF Developments - The Hong Kong ETF market has experienced significant inflows, with the Tracker Fund of Hong Kong seeing a net value increase of 1.18% and a single-day trading volume of HKD 12.5 billion [4] - The Hong Kong Stock Exchange is actively promoting the launch of various thematic ETFs, including those focused on innovative technology, climate change, renewable energy, and biotechnology [4]

Core Viewpoint - The Hong Kong biopharmaceutical market is experiencing a significant resurgence in IPO activity, with a notable increase in both the number of companies going public and the total amount of capital raised in the first half of 2025 [1][2][4]. Group 1: IPO Activity - In the first half of 2025, 10 biopharmaceutical companies successfully listed on the Hong Kong Stock Exchange, compared to only 12 for the entire previous year [1] - The medical and pharmaceutical sectors accounted for the highest number of IPOs, with 6 companies in biopharmaceuticals and 4 in medical devices and services [1] - A total of 39 healthcare companies are currently waiting to go public on the Hong Kong Stock Exchange [3] Group 2: Fundraising and Market Performance - The biopharmaceutical sector raised 15.6 billion HKD in the first half of 2025, making it the second-highest fundraising sector during this period [2] - Heng Rui Medicine raised 9.89 billion HKD, representing a significant portion of the total fundraising in the sector [2] - The IPO of Heng Rui Medicine was the largest in the Hong Kong medical sector in nearly five years, with a subscription rate of 454.85 times [4] Group 3: Market Trends and Investor Behavior - The influx of southbound capital has significantly improved liquidity in the Hong Kong market, with net purchases reaching nearly 730 billion HKD in 2025, the highest for the same period in history [7] - Southbound funds now account for over 40% of trading volume in the Hong Kong market, indicating their growing influence on market pricing [7][8] - The biopharmaceutical sector's valuation has rebounded to near three-year highs, with innovative biotech companies seeing an overall increase of approximately 70% [8] Group 4: Challenges and Strategic Moves - Many biopharmaceutical companies are facing urgent financing needs due to high R&D costs and ongoing losses, leading them to pursue IPOs as a necessary funding avenue [9][10] - The trend of dual listings in both A-share and H-share markets is becoming more common, as companies seek to broaden their financing channels and enhance international visibility [5] - Despite the positive trends, the overall IPO market remains fragile, with concerns about post-listing stock performance and limited financing scale [10]