Group 1 - The core viewpoint of the article highlights the strong financial performance of Hong Kong Exchanges and Clearing Limited (HKEX) in the first half of 2025, with record revenue and profit figures [1] - HKEX reported a revenue and other income of HKD 14.076 billion, a year-on-year increase of 33%, and a profit attributable to shareholders of HKD 8.519 billion, up 39%, both reaching historical highs [1] - The board declared an interim dividend of HKD 6.00 per share, representing a 38% increase compared to the previous year [1] Group 2 - In the first half of the year, HKEX welcomed 44 new listed companies, raising a total of HKD 109.4 billion, which is the highest globally and a 716% increase year-on-year [1] - The average daily trading volume in the securities market was HKD 240.2 billion, a 118% increase year-on-year, while the average daily trading volume for ETFs rose by 184% to HKD 33.8 billion [3] - The introduction of the "Science and Technology Company Fast Track" has led to 50 companies applying for IPOs under the 18A and 18C rules since its launch [3][4] Group 3 - HKEX's CEO mentioned that the confidentiality of submissions is not new and is designed to protect sensitive information of companies in the R&D phase [4] - The discussion around extending trading hours to 24 hours is ongoing, with the aim of enhancing market accessibility for investors [5] - HKEX has initiated consultations on shortening the settlement cycle to T+1, aligning with global trends, and aims to establish a feasible implementation timeline [6][7]

Group 1: Hong Kong Stock Exchange Performance - Hong Kong Stock Exchange reported a record high total revenue of HKD 14.076 billion and a shareholder profit of HKD 8.519 billion for the first half of 2025, marking a historical peak for the semi-annual performance [1] - The new stock market financing amount has returned to the top of global exchanges, reinforcing Hong Kong's leading position in the global capital market [1] Group 2: Tianyue Advanced Listing - Tianyue Advanced, a semiconductor silicon carbide substrate manufacturer, officially listed on the Hong Kong Stock Exchange, with its stock price rising by 6.4% on the first day of trading [2] - The company issued 47.7457 million shares at a price of HKD 42.80 per share, focusing on the research and industrialization of silicon carbide substrates [2] Group 3: Zhaochuang Information's IPO Plans - Zhaochuang Information announced plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its global strategy and brand image [3] - The details of the H-share issuance and listing are yet to be determined, but this move aims to provide new opportunities in the international market [3] Group 4: Hansoh Pharmaceutical Fundraising - Hansoh Pharmaceutical announced a placement agreement to raise approximately HKD 3.897 billion by issuing 108 million shares at a price of HKD 36.30 per share, representing a discount of about 6.49% from the previous closing price [4] - The fundraising is expected to improve the company's financial position and support future research and business expansion [4] Group 5: Hong Kong Stock Market Overview - The Hong Kong stock market index closed at 25,165.94, with a slight increase of 0.17% on August 20 [5] - Other indices showed minor fluctuations, indicating a stable market environment [5]

Core Viewpoint - The introduction of 24-hour trading mechanisms is reshaping global financial markets, driven by the need for extended trading hours and the competition among exchanges [1][5][7] Group 1: Global Market Developments - Nasdaq plans to launch 24-hour trading for stocks, ETFs, and closed-end funds in the second half of 2026, pending regulatory approval [2] - NYSE has received approval to extend trading hours for its fully electronic exchange, NYSE Arca, to 22 hours each trading day [2] - The Chicago Board Options Exchange (CBOE) announced plans for 24-hour trading starting in February 2025, aligning with Nasdaq's initiatives [2] Group 2: Regional Market Responses - The London Stock Exchange Group (LSEG) is exploring the feasibility of extending trading hours, considering both technological and regulatory impacts [3] - The Tokyo Stock Exchange has extended its trading hours to 5.5 hours, marking its first adjustment since 1954 [3] - The cryptocurrency market operates 24/7, with platforms like Kraken offering tokenized versions of U.S. stocks for continuous trading [3][4] Group 3: Expansion of Trading Mechanisms - The 24-hour trading model is expanding beyond futures to include stocks and derivatives, creating a comprehensive trading network [4] - Nasdaq and NYSE's plans cover equities, while CBOE's initiative includes derivatives, indicating a broadening of the trading landscape [4] Group 4: Strategic Considerations for Exchanges - Nasdaq's push for 24-hour trading is driven by global client demand, competitive pressures, and technological advancements [5] - Data shows that 63% of non-traditional trading volume in U.S. stocks comes from the Asia-Pacific region, highlighting the need for extended trading hours [5] - The rise of alternative trading systems has increased non-traditional trading volumes, necessitating Nasdaq's response to maintain market share [5] Group 5: Implications for Hong Kong Stock Exchange - The Hong Kong Stock Exchange (HKEX) is considering 24-hour trading to enhance its competitiveness and attract international capital [6] - Currently, HKEX operates for only 5.5 hours, which is significantly shorter than other major financial centers [6] - HKEX's trading system is expected to support T+1 settlement by the end of 2025, laying the groundwork for 24-hour trading [6] Group 6: Future Outlook - The implementation of 24-hour trading could enhance market efficiency and attract a broader investor base, particularly younger investors [7] - However, challenges such as potential liquidity issues during off-peak hours and the risk of market manipulation by high-frequency traders must be addressed [7] - The evolution towards 24-hour trading is seen as essential for HKEX to avoid being marginalized in the global market [7]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) achieved record high revenue and profit in the first half of 2025, driven by significant increases in spot trading, derivatives, and trading volumes through the Stock Connect programs [1][4]. Group 1: Financial Performance - In the first half of 2025, HKEX reported total revenue (including other income) of HKD 14.1 billion, a year-on-year increase of 33% [4]. - The main business revenue reached HKD 13 billion, up 32% year-on-year, while net profit after tax was HKD 8.5 billion, reflecting a 39% increase compared to the previous year [4]. - Despite a slight decline in trading volume in Q2 compared to Q1, HKEX still achieved record quarterly revenue and profit, with average daily trading volume increasing by 95% year-on-year [7]. Group 2: Trading Volume and Market Dynamics - Spot trading revenue grew by 39% year-on-year, while revenue from stock and financial derivatives increased by 29% [7]. - The average daily trading volume for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached new highs, with the daily average for the Shanghai-Hong Kong Stock Connect increasing by 32% year-on-year [7]. - The cumulative revenue from the Stock Connect programs amounted to HKD 1.813 billion, representing a 51% year-on-year growth [7]. Group 3: IPO Activity - The Hong Kong market saw strong momentum in IPOs, with 44 new listings and a total fundraising amount of HKD 109.4 billion, more than eight times that of the same period last year [8]. - HKEX approved 50 IPO applications in the first half of the year, with over 230 IPO applications currently submitted [8][9]. - The introduction of the "Science and Technology Enterprise Channel" has facilitated the addition of 50 new applications under categories 18A and 18C [8]. Group 4: Future Outlook and Strategic Initiatives - HKEX plans to continue optimizing its trading mechanisms, including shortening the settlement cycle for the cash market to enhance efficiency [10]. - The company anticipates a potential decline in investment income in the second half of the year due to falling interbank rates and property acquisitions [10]. - HKEX is preparing to adapt to the trend of international capital returning to Chinese assets, with a focus on meeting the diverse investment needs of global investors [7].

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The report highlights that Hong Kong Exchanges achieved record high quarterly profits supported by trading volume, with a 33% year-on-year increase in revenue to HKD 14.076 billion and a 39% increase in net profit to HKD 8.519 billion for the first half of 2025 [1][2] - The trading fee income from the stock market saw a significant increase of 112% to HKD 2.556 billion, driven by a 122% year-on-year growth in average daily trading volume [2] - The report anticipates continued growth in net profit for 2025-2027, projecting HKD 17 billion, HKD 18 billion, and HKD 19.6 billion respectively, with corresponding EPS of HKD 13.48, HKD 14.22, and HKD 15.43 [3] Summary by Sections Performance Overview - In 1H25, the revenue breakdown by business lines showed significant growth rates: cash market at 62%, derivatives at 15%, commodities at 8%, data and connectivity at 5%, and company projects at 28% [1] - The trading and transaction system usage fees increased by 49%, while listing fees rose by 30% due to a recovery in the IPO market [2] Revenue and Profit Forecast - The report forecasts revenue growth rates of 26% for 2025, followed by 6% and 7% in subsequent years, with net profit growth rates of 31%, 6%, and 9% respectively [3][7] - The projected P/E ratios for the next three years are 33, 31, and 29 times [3]

Summary of Hong Kong Exchanges and Clearing Limited (HKEX) Conference Call Industry Overview - The conference call focuses on the performance and strategic developments of the Hong Kong Exchanges and Clearing Limited (HKEX) in the financial market, particularly in the context of the cash and derivatives markets, IPO activities, and community investments. Key Financial Performance - In the first half of 2025, HKEX reported a total revenue and other income growth of 33%, reaching HKD 14.1 billion, with a net profit of USD 8.5 billion and earnings per share of USD 6.74, both reflecting a 39% year-on-year increase [3][9][10]. - The board declared an interim dividend of USD 6 per share, a 38% increase from the previous year, representing 90% of the group's profit [3][9]. - Daily average trading volume in the cash market reached USD 240 billion, more than double that of the same period last year [2][3]. IPO and Fundraising Achievements - HKEX became the world's largest IPO market in the first half of 2025, with 44 companies going public and raising over HKD 109 billion, marking the best half-year performance since 2021 [2][6][7]. - Follow-on fundraising totaled over HKD 240 billion, also the highest since 2021 [7]. Market Performance Highlights - The cash market showed strong performance with historical trading volume records; ETP market daily average trading volume increased by 163% [5]. - Derivatives market recorded a daily average trading volume of 1.7 million contracts, an 11% year-on-year increase, with USD/CNY futures seeing a 44% increase in daily average trading volume [2][11]. Strategic Developments - HKEX signed a memorandum of understanding with the Central Clearing Company to support the development of Hong Kong's fintech ecosystem [4]. - Initiatives included launching a technology enterprise channel, approval for Hong Kong as a new ENE storage location, and the initiation of a 30-year swap trading under the Northbound Swap Connect [4]. Community Investment Initiatives - To celebrate its 25th anniversary, HKEX committed to investing at least HKD 25 million in a flagship charity program focused on supporting caregivers in Hong Kong [8]. Future Outlook - Despite potential impacts from macroeconomic and geopolitical factors, HKEX maintains a cautiously optimistic outlook for the coming year, driven by positive prospects for the Chinese economy and advancements in AI and innovation [9]. Southbound Trading Activity - Southbound average daily trading volume reached HKD 111 billion, tripling from the previous year and accounting for nearly 23% of cash market trading volume [10][14]. Derivatives and Commodity Market Performance - The derivatives market saw robust growth, with significant increases in trading volumes, particularly in USD/CNY futures [11]. Digital Asset Ecosystem Development - HKEX is focusing on the development of the digital asset ecosystem, allowing ETFs linked to cryptocurrencies to be listed and exploring the potential use cases for stablecoins [25][26]. Conclusion - HKEX's strategic initiatives and strong financial performance position it well as a leading international financial center, with ongoing efforts to enhance market liquidity and community engagement while navigating the evolving regulatory landscape for digital assets.

Investment Rating - The report maintains a "Strong Buy" investment rating for Hong Kong Exchanges and Clearing Limited (HKEX) with a target price of HKD 515.00, indicating a potential upside of 17% from the current price of HKD 441.2 [2][8]. Core Insights - The report highlights that HKEX achieved record half-year results in H1 2025, with total revenue of HKD 14.1 billion, a year-on-year increase of 33%, and net profit attributable to shareholders of HKD 8.5 billion, up 39% year-on-year [1][5]. - The report emphasizes strong trading activity in both the cash and derivatives markets, contributing to the revenue and profit growth [5][8]. - The report projects continued growth in net profit for HKEX, estimating HKD 16.6 billion, HKD 18.1 billion, and HKD 19.5 billion for the years 2025 to 2027, representing year-on-year growth rates of 27%, 9%, and 7% respectively [8]. Financial Performance Summary - H1 2025 financial highlights include: - Total revenue: HKD 14.1 billion, +33% YoY - Net profit: HKD 8.5 billion, +39% YoY - EBITDA: HKD 10.9 billion, +43% YoY, with an EBITDA margin of 79%, up 6 percentage points YoY [1][5][8]. - Revenue breakdown by business segment for H1 2025: - Cash market: HKD 6.7 billion, +62% YoY - Equity securities and financial derivatives: HKD 3.55 billion, +15% YoY - Other segments also showed positive growth [5][8]. Market Activity - The report notes that the cash market saw record trading volumes, with average daily turnover (ADT) reaching HKD 222.8 billion, a 122% increase YoY [5][6]. - The primary market experienced a strong momentum with 44 new listings in H1 2025, raising HKD 109.4 billion, which is more than eight times the amount raised in H1 2024 [8][34]. Valuation Metrics - The report provides projected financial metrics for HKEX: - Revenue growth forecast for 2025: HKD 27.8 billion, +24% YoY - Projected PE ratio for 2025: 22.23 [7][33]. - The report indicates a strong return on equity (ROE) of 25.1% and a book value per share of HKD 41.0 [2][7].

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (00388.HK) [1] Core Views - The company achieved record high semi-annual performance with total revenue and other income reaching HKD 141 billion, a year-on-year increase of 33%, and net profit attributable to shareholders at HKD 85 billion, up 39% year-on-year [7] - The significant growth in performance is attributed to improved investment sentiment supported by mainland policies, leading to increased participation from mainland investors in offshore markets, which boosted trading volumes in the Hong Kong stock market [7] - The report forecasts continued strong growth for the company, with expected shareholder profits of HKD 174.19 billion, HKD 192.62 billion, and HKD 207.88 billion for 2025-2027, corresponding to growth rates of 33%, 11%, and 8% respectively [7] Financial Performance Summary - Total revenue (in million HKD) for 2023A, 2024A, 2025E, 2026E, and 2027E is projected at 20,516, 22,374, 27,785, 30,524, and 32,970 respectively, with year-on-year growth rates of 11.16%, 9.06%, 24.18%, 9.86%, and 8.01% [1] - Net profit attributable to shareholders (in million HKD) for the same years is expected to be 11,862, 13,050, 17,419, 19,262, and 20,788, with growth rates of 17.70%, 10.02%, 33.48%, 10.58%, and 7.92% [1] - The latest diluted EPS is projected to be 9.36, 10.29, 13.74, 15.19, and 16.40 for the years 2023A to 2027E [1] Market Data - The closing price of the stock is HKD 441.20, with a market capitalization of approximately HKD 559.37 billion [5] - The stock has a price-to-earnings (P/E) ratio of 47.16 for 2023, decreasing to 26.91 by 2027 [1][5] - The company has a book value per share of HKD 44.89 and a price-to-book (P/B) ratio of 9.83 [6][5]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first half of 2025, driven by a significant market recovery and a strong IPO pipeline [1][2]. Group 1: Financial Performance - HKEX's revenue and other income for H1 2025 reached HKD 14.076 billion, a 33% increase compared to H1 2024 [1] - Shareholder profit for H1 2025 was HKD 8.519 billion, up 39% from H1 2024 [1] - Daily trading volume in the cash market hit a half-year record, doubling compared to H1 2024 [1] Group 2: IPO Activity - HKEX completed over 50 IPOs in the first half of 2025, raising nearly USD 17 billion, maintaining a leading global IPO ranking [2] - There are approximately 230 companies in the IPO pipeline, indicating strong demand for listings [2] - HKEX aims to collaborate with mainland exchanges to support companies with overseas expansion plans [3] Group 3: Investment Trends - Global investors are increasingly looking to diversify into Asian markets, particularly China, which is seen as a favorable investment destination [4] - High foreign participation in IPOs, especially among cornerstone investors, reflects strong interest from international investment funds [4] Group 4: Technology and Confidentiality - HKEX has received 50 applications from companies under the new technology listing framework, which allows for confidential submissions [5] - The confidentiality provision is designed to protect sensitive information during the approval process while ensuring transparency at the time of the IPO [5] Group 5: Trading Hours and Market Accessibility - There is ongoing discussion about the potential for 24-hour trading at HKEX, which could enhance market accessibility for investors [6] - The company is evaluating the implications of extended trading hours on operational processes and risk management [6] - HKEX is committed to optimizing trading conditions and ensuring competitive positioning against other exchanges [6]

Market Overview - The A-share market experienced a significant rise, with the Shanghai Composite Index increasing by over 1%, reaching a nearly 10-year high [1] - The market showed strong momentum with net financing purchases close to 30 billion, marking the second highest this year and surpassing any weekly total for net financing purchases [2] Market Sentiment - The market sentiment was mixed, with positive financing data contrasted by negative news from the lithium sector, where a lithium mine resumed production, leading to a drop in lithium carbonate futures [2] - There were concerns regarding the impact of regulatory actions against "small essays" from sell-side research firms, which could affect market dynamics [2][3] Industry Insights - The automotive sector saw a notable rebound, particularly in commercial vehicles, which rose by 4.59%. This was partly driven by speculation about a potential investment by FAW in Leap Motor, although FAW later denied the report [7][10] - The economic pressures faced by traditional automakers like FAW highlight the competitive environment and the need for collaboration with new energy vehicle companies [10] Hong Kong Market Performance - Hong Kong stocks reported strong earnings, with companies like Xiaomi, Xpeng, and PP Mart showing significant gains. PP Mart's stock surged over 12%, reaching a historical high [13][14] - The Hong Kong Stock Exchange reported a net profit of 4.44 billion HKD, a 41% year-on-year increase, benefiting from being the largest IPO market globally [15] Bond Market Commentary - The bond market experienced volatility, with a brief period of stability followed by a decline in sentiment, indicating a challenging environment for bond investors [17][18] Investment Recommendations - No new investment operations were suggested for the day, with existing investors encouraged to engage with community resources for further insights [19][20]