Financial Data and Key Metrics Changes - HKEX reported record financial results for 2024, with revenue and other income increasing by 9% year-on-year, and a remarkable 31% increase in Q4 compared to the previous year [4][7] - Profit attributable to shareholders rose by 10% year-on-year, with Q4 profit showing a significant 46% increase [4][8] - Headline average daily turnover (ADT) reached $186.9 billion in Q4 2024, more than doubling from Q4 2023 [7][9] - Full-year profit after tax was $13.1 billion, with earnings per share at $10.32, both up 10% from 2023 [8][10] Business Line Data and Key Metrics Changes - The cash, commodities, and ETP markets all recorded double-digit growth in average daily turnover and volume, while the derivatives market achieved record average daily volumes [5][10] - Derivatives trading volumes reached new highs, contributing significantly to revenue, with average daily volumes up 15% from 2023 [19][10] - The LME's chargeable average daily volume increased by 18% from 2023, reflecting strong performance in the commodities market [10][12] Market Data and Key Metrics Changes - Northbound and southbound Stock Connect volumes reached record quarterly highs, with northbound ADT up 39% year-on-year and southbound up 55% [17][10] - IPOs in 2024 raised a total of $88 billion from 71 new listings, with new economy companies accounting for over 80% of the capital raised [18][10] Company Strategy and Development Direction - HKEX is focused on enhancing market resilience and competitiveness through strategic reforms, new products, and microstructure enhancements [5][14] - The company aims to modernize its infrastructure and enhance product offerings to ensure long-term market vibrancy and sustainability [14][30] - HKEX is exploring adjacent business opportunities, including the introduction of a virtual asset index series and a data marketplace [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating continued macro uncertainties but renewed interest in trading and IPOs [29][30] - The company plans to implement a minimum spread reduction and explore a shorter settlement cycle (T+1) to enhance market competitiveness [66][70] - Management emphasized the importance of maintaining cost discipline while investing in talent and technology to support sustainable growth [72][75] Other Important Information - The Board declared a second interim dividend of $4.9 per share, bringing the total full-year dividend to $9.26 per share, up 10% from 2023 [8][10] - Operating expenses increased by 6% year-on-year, primarily due to higher staff and IT costs, but the company maintained a strong EBITDA margin [11][12] Q&A Session Summary Question: Update on IPO pipeline and secondary listings - Management noted a strong trend in A-share companies pursuing dual listings in Hong Kong, with around 30 companies already in the pipeline [39][40] - Concerns about SAFE's scrutiny on IPO proceeds were addressed, with management confident in the ongoing encouragement for offshore investments [40][41] Question: Listing requirements and post-listing obligations - Management confirmed ongoing reviews of listing eligibility and compliance requirements to attract more companies [49][50] - Continuous improvements to the listing regime are aimed at maintaining competitiveness [50][52] Question: Effective tax rate and depreciation - Management indicated that the effective tax rate may rise to a minimum of 15% due to BEPS regulations, impacting financials [55][56] - Depreciation and amortization are expected to increase with the launch of new systems in 2025 [58][59] Question: 2025 strategy and operational expenses - Plans for 2025 include enhancing market vibrancy, future-proofing technology, and exploring adjacent business opportunities [64][70] - Management emphasized maintaining cost discipline while investing in talent and IT systems [72][75] Question: Data-related business growth - Management acknowledged the potential for growth in data-related business and the importance of developing a data marketplace [81][84] - The focus remains on diversifying revenue streams while maintaining a strong core business [81][84]