Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record-breaking revenue and net profit for the first half of 2025, with revenue reaching HKD 14.076 billion, a 33% year-on-year increase, and net profit attributable to shareholders at HKD 8.519 billion, up 39% [2] Group 1: Financial Performance - HKEX's main business revenue grew by 34% to HKD 12.954 billion, driven by record trading volumes in the spot and stock options markets, increased custody fees, and higher margin balances contributing to net investment income [2] - The average daily trading volume in the securities market surged to HKD 240.2 billion, a 118% increase year-on-year, influenced by favorable market conditions and increased participation from international and mainland investors [3] Group 2: Market Trends and Innovations - Northbound and Southbound trading under the Stock Connect programs reached historical highs, with the average daily turnover for the Stock Connect at RMB 171.3 billion, a 32% increase, and HKD 111 billion for Hong Kong Stock Connect, soaring 196% [3] - The Hong Kong ETF market also saw significant growth, with an average daily turnover of HKD 33.8 billion, up 184% from the previous year [3] Group 3: IPO Activity - The first half of the year saw 44 companies listed on the Hong Kong Stock Exchange, raising a total of HKD 109.4 billion, a staggering 716% increase year-on-year, marking the strongest performance since 2021 [6] - There are currently over 200 IPO applications being processed, more than double the 84 applications at the end of the previous year, indicating a robust pipeline for new listings [6][5] Group 4: Future Outlook - Despite global economic uncertainties, HKEX is expected to maintain its growth momentum, particularly with more innovative companies, especially in technology and biotechnology, choosing to list in Hong Kong [4] - Predictions suggest that if the Federal Reserve initiates interest rate cuts, liquidity in the Hong Kong market will improve, potentially leading to valuation recovery in sectors like technology and biomedicine [4] - HKEX has implemented reforms to attract specialized technology companies, which have already shown positive results in attracting new listings and enhancing market competitiveness [6][7]