Group 1 - The core viewpoint is that Hong Kong's capital market has become a significant highlight globally in 2023, with an average daily trading volume exceeding HKD 250 billion and over 60 companies listed, raising a total of HKD 182.9 billion, ranking first worldwide [1][3] Group 2 - There are currently around 300 companies waiting for listing approval, with half of them from new economy sectors such as electric vehicles, renewable energy, artificial intelligence, new materials, and biotechnology [3] - The Hong Kong Stock Exchange aims to diversify its asset classes, focusing on expanding fixed income and other asset categories to meet global investors' needs for alternatives to traditional equities [2][3] Group 3 - Factors contributing to the rise of the Hong Kong stock market include China's economic stimulus policies and the emergence of new technology companies, which have attracted significant global investment [4] - The "secret weapon" for attracting capital and enhancing market activity is the interconnectivity mechanisms, such as the Stock Connect programs, which have facilitated cross-border investments and increased participation from both local and mainland investors [4]

Group 1 - The 2025 Bund Summit will be held from October 23 to 25 in Shanghai, focusing on the theme "Embracing Change: New Order, New Technology" [2] - The summit is co-hosted by the China Financial Forty Forum (CF40) and Tsinghua University (THU), featuring discussions among global policymakers, entrepreneurs, and scholars on the reshaping of the global economy and financial landscape [2] Group 2 - Hong Kong's stock market rebound is attributed to ongoing economic stimulus policies from mainland China and a resurgence of global investor confidence in the Chinese market [4] - As of the first three quarters of this year, the average daily trading volume in Hong Kong exceeded 250 billion HKD, with over 60 companies listed, raising a total of 182.9 billion HKD, making it the top global market for IPOs [4] - Approximately 300 companies are currently in the queue for listing, with about half from new economy sectors such as electric vehicles, renewable energy, artificial intelligence, new materials, and biotechnology [4] Group 3 - The "secret weapon" of Hong Kong is its connectivity mechanisms, including the Stock Connect programs, which allow for two-way capital flow between global and mainland markets [5] - Both southbound and northbound capital flows are active, with increasing participation from global investors in mainland markets and vice versa [5] Group 4 - The Hong Kong Stock Exchange aims to build a more diversified multi-asset ecosystem, expanding beyond its traditional strengths in equities to include bonds, commodities, and other asset classes [6] - The shift from a "single listing center" to a "multi-asset ecosystem platform" is underway, highlighting Hong Kong's pivotal role in the global financial landscape as new economy enterprises emerge and global capital seeks new balance [6]

Core Insights - The CEO of Hong Kong Exchanges and Clearing (HKEX), Charles Li, emphasized the need for a more diversified multi-asset ecosystem to address current challenges [1] - In the context of global investors considering de-dollarization and seeking new balance points, HKEX aims to expand its offerings beyond IPOs and equities to include fixed income, commodities, and other asset classes [1] Group 1 - HKEX's primary challenge is to establish a more diverse ecosystem that includes various asset classes [1] - The focus on fixed income and other asset classes is seen as essential for meeting investor demands [1] - The current global trend of de-dollarization is influencing HKEX's strategic direction [1]

Core Insights - The average daily trading volume of Hong Kong stocks has reached over 250 billion HKD since the beginning of the year [1] - The number of companies listed on the Hong Kong Stock Exchange (HKEX) has significantly increased, with over 60 IPOs and a total fundraising amount of 182.9 billion HKD from January to September, ranking first globally [1] - There are currently around 300 listing applications being processed, with half of them from new economy sectors such as electric vehicles, renewable energy, artificial intelligence, new materials, and biotechnology [1]

Core Insights - The average daily trading volume of Hong Kong stocks has exceeded 250 billion HKD since the beginning of this year [1] - Over 60 companies have listed on the Hong Kong Stock Exchange (HKEX) from January to September, raising a total of 182.9 billion HKD, ranking first globally [1] - There are approximately 300 companies waiting for listing approval, with half from new economy sectors such as electric vehicles, renewable energy, artificial intelligence, new materials, and biotechnology [1] - The main challenge for HKEX is to establish a more diversified ecosystem with multiple asset classes, as it has traditionally been strong in equities but relatively weak in fixed income [1]

Core Viewpoint - The 10th Pharmaceutical Innovation and Investment Conference, organized by the Hong Kong Stock Exchange, will be held from October 26 to 27 in Nanjing, focusing on the theme "Innovation. Ten Years. Investment. Future" [1] Group 1 - The conference will adopt a new roadshow recruitment format [1] - It aims to explore new trends in innovative development by integrating the latest domestic and international political and economic environments [1] - The event will create a dialogue platform covering the entire industry chain, including government, industry, academia, research, application, and investment [1]

Core Insights - Hong Kong's ETP (including ETFs and leveraged/inverse products) has achieved record daily trading volume, with a year-on-year increase of 146% in the first three quarters, making it the third-largest ETP market globally, surpassing South Korea and Japan [1][3] - The significant contribution from southbound capital, particularly in technology ETFs, has driven this growth, with the Hang Seng Tech Index ETP being a major contributor [2][3] - The asset management scale of Hong Kong's ETP market has grown by 34.1% year-on-year, reaching HKD 653.5 billion, with technology and biotechnology products being the most favored [4] ETP Market Performance - As of September 2023, the average daily trading amount for Hong Kong ETPs reached HKD 37.8 billion, marking a 146% increase year-on-year, establishing Hong Kong as a leading global market [3] - The turnover rate of Hong Kong's ETP market has surged to 14.7, solidifying its position as the highest globally [4] Southbound Capital and ETF Expansion - The inclusion of more ETFs in the Stock Connect program is expected in November, which will further enhance cross-border ETF trading activity [2][6] - The number of qualified ETFs under the Stock Connect has increased, with 290 ETFs currently eligible, including 273 mainland-listed and 17 Hong Kong-listed ETFs [6] Active ETFs Growth - Active ETFs in Hong Kong have seen a remarkable increase, with average daily trading volume growing over three times in the first three quarters of 2025, driven by strong market performance and robust company earnings [7] - As of September 2025, there are 31 active ETFs listed in Hong Kong, with a total market value of approximately HKD 23.7 billion, reflecting a 143% increase from the previous year [7]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) is committed to enhancing collaboration with various parties, optimizing listing arrangements, and expanding connectivity mechanisms to promote the development of capital markets in both Hong Kong and mainland China [1][2] Group 1: Market Performance - Since September of the previous year, China's investment opportunities have gained global investor attention, leading to strong performance in the Hong Kong market, with trading volumes in the securities and derivatives markets reaching six-month highs [1] - As of September 30, 2023, the total IPO financing amount for the year reached HKD 182.9 billion, more than doubling compared to the same period in 2024 [1] - The average daily trading volume in the Hong Kong securities market was HKD 256.4 billion, a year-on-year increase of 126% [1] - The derivatives market saw an average daily trading volume of 1.68 million contracts, an increase of 11% year-on-year [1] Group 2: Strategic Developments - HKEX plans to launch the Hang Seng Biotechnology Index futures to meet the growing risk management needs of investors in the biotechnology sector [2] - The company is collaborating closely with the Shanghai and Shenzhen stock exchanges to incorporate REITs into the Stock Connect, introduce block trading mechanisms, and include RMB counters in the Hong Kong Stock Connect [2] - HKEX aims to enhance the international competitiveness of the Hong Kong stock market and cater to the diverse investment needs of global investors, including those from mainland China [2] - As a leading offshore RMB center, HKEX will continue to build a competitive ecosystem for fixed income and currency products, providing various asset allocation and risk hedging tools to support the steady internationalization of the RMB [2]

Core Viewpoint - Morgan Stanley anticipates strong revenue and profit growth for Hong Kong Exchanges and Clearing (HKEX) continuing until Q3 2025, driven by a robust average daily trading volume (ADV) of HKD 286 billion and high liquidity [1] Group 1: Revenue and Profit Growth - The firm expects core business growth to remain strong in Q3, with trading fees and clearing fees increasing by 75% and 97% year-on-year, respectively [1] - Revenue and profit are projected to grow by 47% and 59% year-on-year by Q3 2025, respectively, with EBITDA margin increasing by 7 percentage points to 80% [1] Group 2: Market Activity and Conditions - Increased trading activity in the Hong Kong capital market is noted as evidence of the financial system cycle bottoming out [1] - The second quarter's high foreign exchange earnings have created a high base, and the ongoing low interest rate environment is expected to lead to a 22% quarter-on-quarter decrease in net investment income for Q3 [1] Group 3: Investment Rating - Morgan Stanley maintains an "Overweight" rating for HKEX with a target price set at HKD 508 [1]

Core Viewpoint - Companies planning to shift their main business to Digital Asset Treasury (DAT) may struggle to achieve their goal of listing in Hong Kong due to the cautious stance of the Hong Kong Stock Exchange (HKEX) towards cryptocurrency accumulation platforms posing as listed companies [2][3] Regulatory Stance - HKEX has raised inquiries with at least five companies attempting to make DAT their core business, and none of these listing applications have been approved [2] - The regulatory approach of HKEX aligns with existing rules aimed at preventing the emergence of "shell companies" and ensuring that listed companies have substantive business operations [5][6] - The HKEX's decision reflects a broader regulatory framework in Hong Kong, where the Securities and Futures Commission has not prioritized DAT in its digital asset development policy [7] Market Impact - The DAT business model, characterized by a cycle of financing, cryptocurrency acquisition, market value growth, and refinancing, has attracted significant capital, with total financing exceeding $20 billion from early this year to late September [8] - Despite the influx of capital, many DAT companies are trading at or below their net asset values, raising concerns about asset bubbles and insider trading [9] - The restrictions imposed by HKEX may lead to a cooling effect on the cryptocurrency sector, prompting investors to reassess compliance risks and focus on regulated products [10] Future Directions - Companies looking to enter the digital asset space must integrate their operations with the real economy, as exemplified by firms like 瑞和数智, which are investing in Web3.0 and collaborating on real-world asset digitization [11] - There remains potential for DAT companies to gain regulatory approval if they can connect their cryptocurrency assets with practical applications such as supply chain finance and cross-border payments [11] - The decision by HKEX aims to maintain stability in traditional capital markets while allowing room for compliant innovation, potentially positioning Hong Kong as a model for digital transformation in global financial centers [11]