Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was HKD 6.4 billion, an increase of 86% from HKD 3.4 billion in Q3 2024 [13] - Net income rose by 143% year-over-year to HKD 3.2 billion, with a net income margin expanding to 50.1% from 38.4% in the same quarter last year [17] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter [7] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter [13] - Interest income increased to HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [14] - Total trading volume rose 105% year-over-year to HKD 3.9 trillion, with crypto trading volume surging 161% sequentially [8][9] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts, with the highest quarterly net client addition since Q1 2021 [4] - Singapore led peers in daily active users (DAUs) and continued to see steady growth in new funded accounts [5] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [6] Company Strategy and Development Direction - The company aims to enhance its product offerings and client experience, particularly in crypto and AI capabilities [16][34] - Futu is focusing on integrating banking services through Airstar Bank to improve client stickiness and expand service offerings [46] - The company is optimistic about the growth potential in the crypto market, with plans to broaden token offerings and explore derivatives [28][50] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition momentum and cost trends, despite a slight increase in customer acquisition costs [20][21] - The company noted that market fluctuations have impacted asset inflows, but robust client acquisition momentum remains [20] - Management highlighted the importance of regulatory developments in shaping future product offerings, particularly in the crypto space [49] Other Important Information - The company hosted its annual investor events, attracting over 28,000 investors, enhancing brand recognition in the region [5] - The average client acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [20] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [20] Question: Drivers behind strong interest income growth - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from the securities borrowing business [23][25] Question: Insights on crypto business contribution and future growth - Crypto trading volume saw triple-digit growth across markets, with new features and token offerings expected to drive further expansion [26][28] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed an upward trajectory in average client assets, with trading behavior influenced by market performance [54] Question: Gross margin trends in international markets - Operating margins in Singapore have consistently topped 60%, indicating strong operating leverage as the company scales [56]

Core Insights - The credit markets are experiencing a significant uptick in activity, particularly in high yield and loan volumes, indicating a strong market sentiment [2][3] - M&A activity has increased by 8%, which is seen as a positive indicator for credit market volumes, as these transactions are often financed through credit [3][15] - The potential for a Federal Reserve rate cut could lower the cost of capital, benefiting borrowers and overall market conditions [4][5] Credit Market Dynamics - Credit market volumes have risen notably since "liberation day," with tight spreads and active participation from borrowers and issuers [2] - There is a significant demand for financing in infrastructure and energy transition, with estimates of a $100 trillion capital requirement [7][11] - The private credit market is growing rapidly, with a current valuation of $1 trillion, while public markets are valued at approximately $2.6 trillion [10][11] M&A and Investment Trends - Large M&A transactions, particularly those over $10 billion, have seen a year-over-year increase of 100% to 130%, marking the best performance in five years [13][15] - The equity capital markets are also performing well, with September recording the best start since 2012, indicating strong investor confidence [15][16] - The convergence of public and private markets is being actively pursued, with new organizational structures being created to address client needs [10][11]