Group 1: Policy Focus - The Chief Executive of Hong Kong, John Lee, emphasized that "benefiting people's livelihood" is a key focus of the new policy report, aiming to enhance long-term economic competitiveness and improve citizens' happiness and sense of gain [2][11] - The report outlines nine key areas related to citizens' daily lives, with housing being the top priority, including accelerated construction of public housing and innovative "simple public housing" initiatives [2][3] Group 2: Northern Metropolis Development - The Northern Metropolis is highlighted as strategically important, occupying one-third of Hong Kong's land, with plans to accelerate its development and attract industries and major projects [4][6] - A new "Northern Metropolis Development Committee" will be established to streamline administrative processes and introduce competitive practices for land management [5][6] Group 3: Housing and Land Policies - The government plans to allow the transfer of unused plot ratios from redevelopment projects to other areas, aiming to optimize land use and facilitate urban renewal [3][6] - A pilot program will permit property owners to offset land compensation costs by returning land to the government, with specific compensation rates set for different land classifications [6][7] Group 4: Financial Market Initiatives - The report proposes exploring the reduction of the stock settlement cycle to T+1, with consultations planned for the first half of next year [9] - The government aims to optimize the "New Capital Investor Entry Scheme" by lowering the residential transaction threshold to HKD 30 million, enhancing the scheme's attractiveness to investors [10]

Group 1: Hong Kong Government Initiatives - The Chief Executive of Hong Kong, John Lee, presented his fourth policy address focusing on economic and livelihood issues, proposing a series of measures [1] - Key reform initiatives include accelerating the development of the Northern Metropolis, establishing a development committee led by the Chief Executive [1] - In financial market development, there are plans to explore the establishment of an international gold trading market and a T+1 stock settlement cycle [1] - Housing policy reforms aim to increase public housing supply and lower the investment threshold for residential properties from HKD 50 million to HKD 30 million [1] Group 2: Market Performance and Analysis - As of September 17, the Hang Seng Tech Index has increased by 41.77% year-to-date, while the Hang Seng Index has risen by 34.14%, both reaching new highs for the year [3] - Analysts suggest that the anticipated interest rate cuts by the Federal Reserve will enhance global liquidity, potentially boosting liquidity in the Hong Kong stock market [3] - There is a notable net inflow into Hong Kong stocks through the Stock Connect, significantly exceeding levels from previous years [3] - Despite the positive outlook, experts caution that uncertainties such as the pace of global economic recovery and geopolitical factors may impact the market [3]

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]