Core Insights - The CEO of Hong Kong Stock Exchange (HKEX) highlighted a significant increase in IPO financing, with a year-on-year growth of over two times in the first nine months of the year, driven by international long-term capital and a shift in global asset allocation logic [1] Group 1: Market Performance - The total IPO financing amount in the Hong Kong market reached HKD 182.9 billion by the end of September, marking a substantial increase compared to the same period in 2024 [1] - The strong momentum in the new stock market continues, with nearly 300 public listing applications currently being processed by HKEX [1] - International long-term capital from Europe, the Middle East, and emerging markets is actively participating in the issuance of new shares for technology innovation companies, indicating high confidence in China's tech sector [1] Group 2: Market Enhancements - HKEX has implemented measures to lower the minimum price fluctuation in the securities market to enhance price discovery efficiency and trading flexibility [2] - Optimization of share settlement fees has been in effect since June, further reducing trading costs for investors [2] - Discussions are underway to shorten the settlement cycle for the Hong Kong stock market, marking a significant step towards improving market efficiency and aligning with international standards [2] Group 3: Future Outlook - HKEX is preparing to enhance its market infrastructure to meet the diverse investment needs of global investors, including mainland investors [3] - The exchange is poised to capitalize on the trend of global funds seeking diversified investments across regions and asset classes [3]

Group 1 - The Hong Kong Stock Exchange (HKEX) is actively preparing for optimization measures in the mutual market access programs, including the inclusion of REITs and a block trading mechanism [1] - As of September 30, the average daily trading volume for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached RMB 206.4 billion, a 68% year-on-year increase [1] - The average daily trading volume for the Hong Kong Stock Connect reached HKD 126 billion, more than double that of 2024 [1] Group 2 - The Bond Connect's northbound trading continues to show growth, with an average daily trading volume of RMB 44 billion as of August [2] - The average daily settlement amount for the Swap Connect reached a new high of RMB 22 billion, a 69% year-on-year increase [2] - HKEX aims to deepen collaboration with various parties to continuously optimize listing arrangements and expand mutual market access mechanisms, enhancing market efficiency [2]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has reformed the Growth Enterprise Market (GEM) to better serve high-growth potential small and medium-sized enterprises (SMEs) by focusing on business sustainability rather than just profitability [2][4]. GEM Listing Core Conditions - The core condition for GEM listing emphasizes "business sustainability," reducing the focus on mere profitability and instead prioritizing growth potential, market recognition, and operational history [2]. - GEM no longer has a single profitability threshold but offers multiple financial standards to accommodate different growth stages of companies [3]. - Companies must have a clear business model focused on high-growth industries, at least 24 months of active business records (which can be shortened to 12 months under specific conditions), and stable control and management [3]. Financial and Market Value Indicators - Financial standards include optional profitability tests, market value/income/cash flow tests, and a new market value/income test for high-growth, non-profitable companies [3]. - The public shareholding requirement is set at a minimum of 25%, with specific conditions allowing for a reduction to 15% for companies with a market value exceeding HKD 10 billion [3]. Positioning and Objectives - GEM is positioned as an "accelerator for growth-oriented enterprises," focusing on companies that have not yet met the main board's thresholds but possess operational records and market recognition [4]. Listing Process and Timeline - The listing process involves hiring intermediaries, conducting due diligence, drafting a prospectus, and submitting applications, typically taking 6-12 months depending on the company's readiness [5]. - Continuous listing responsibilities have been strengthened, requiring regular disclosures on business progress, financial health, and risk factors [5]. Advantages and Challenges - Advantages include lower listing thresholds compared to the main board, a clear pathway for transitioning to the main board, and a favorable investor base for innovative companies [5]. - Challenges involve lower liquidity, strict ongoing disclosure requirements, and higher costs associated with intermediaries [5].

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 regained global investor attention, leading to strong performance in the Hong Kong market [1] - As of September 30, 2023, the total IPO financing amount reached HKD 182.9 billion, more than doubling compared to the same period in 2022 [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, up 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 [2]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is expected to report strong earnings growth for Q3 2025, driven by high trading activity and increased revenue from main fee categories, despite a decline in investment income due to margin pressures [1][2]. Group 1: Earnings Forecast - Q3 2025 earnings are projected to increase by 49% year-on-year and 5% quarter-on-quarter, reaching HKD 46.8 billion [1]. - Total revenue for Q3 2025 is expected to rise by 40% year-on-year and 4% quarter-on-quarter to HKD 75.3 billion, with main fee income increasing by 57% year-on-year and 18% quarter-on-quarter to HKD 65.1 billion [1]. Group 2: Trading Activity - Trading activity remains robust, with Q3 average daily turnover (ADT) expected to rise by 141% year-on-year and 20% quarter-on-quarter to HKD 2,864 billion [1]. - Southbound ADT is anticipated to increase by 285% year-on-year and 36% quarter-on-quarter to HKD 1,525 billion, accounting for 26.6% of Hong Kong stocks [1]. - Northbound ADT is projected to grow by 144% year-on-year and 77% quarter-on-quarter to HKD 2,687 billion, representing 7.1% of A-shares [1]. Group 3: Investment Income and Margin Pressure - Investment income for Q3 2025 is expected to decline by 18% year-on-year and 36% quarter-on-quarter to HKD 9.9 billion due to margin pressures [2]. - The narrowing of margin interest spreads is anticipated as long-term yields decline while short-term costs rise, alongside a decrease in derivative margin requirements due to lower market volatility [2]. Group 4: Market Conditions and Future Outlook - The basic fundamentals of the market remain solid, with October ADT reaching HKD 2,880 billion, indicating sustained high trading activity [2]. - The potential for a rapid interest rate cut by the Federal Reserve in Q4 could support liquidity in the Hong Kong stock market [2]. - The company is advised to focus on the valuation adjustments following changes in risk appetite among investors [2]. Group 5: Profit Forecast and Valuation - The profit forecast for 2025 has been raised by 3% to HKD 171 billion, while the 2026 forecast remains unchanged [2]. - The current trading multiples are at 31x for both 2025 and 2026 earnings, with a target price maintained at HKD 500, indicating an 18% upside potential [2].

Core Insights - The number of listing applications in Hong Kong is rapidly increasing, with nearly 300 applications being processed by the Hong Kong Stock Exchange as of the end of September 2023 [1] - In the first three quarters of 2025, Hong Kong's new stock market welcomed 69 new listed companies, raising over HKD 180 billion, which is more than double the amount from the same period last year, making it the top globally [1] - More overseas issuers are choosing to list in Hong Kong, with over half of the companies listed this year having international business operations, averaging about 50% of their revenue from overseas markets [1] Market Developments - The GEM (Growth Enterprise Market) has seen 4 companies listed since its reform in 2024, raising HKD 280 million, with 11 applications from small and medium-sized enterprises received this year [1] - The Hong Kong Stock Exchange and the Securities and Futures Commission are working on further optimizing the system to enhance market vitality and competitiveness [1] Revenue Projections - The stock stamp duty revenue for the fiscal year 2024-2025 is projected to be approximately HKD 52 billion, an increase of about 43% compared to the previous year [1] - For the first two quarters of 2025-2026, the stock stamp duty revenue is expected to be around HKD 44 billion, reflecting a 143% increase compared to the same period last year [1]

Group 1 - The average daily trading volume of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached new highs in the first half of 2025, with the Shanghai and Shenzhen Stock Connect averaging a daily trading volume of RMB 206.4 billion, a 68% increase compared to the same period in 2024 [1] - The Hong Kong Stock Connect's average daily trading volume reached HKD 126 billion, more than double the level of the same period in 2024 [1] - The strong performance of the Hong Kong market is attributed to favorable economic policies and technological innovations in China, leading to increased global investor interest [1] Group 2 - The Hong Kong Stock Exchange (HKEX) is collaborating closely with the Shanghai and Shenzhen exchanges to include REITs in the Stock Connect, introduce a block trading mechanism, and incorporate RMB counters into the Hong Kong Stock Connect [1] - HKEX aims to deepen collaboration with various parties to optimize listing arrangements, expand the connectivity mechanism, and enhance market efficiency [2] - The exchange is focused on building a competitive ecosystem for fixed income and currency products, providing diverse asset allocation and risk hedging tools for domestic and international investors [2]

Core Insights - The Hong Kong market is experiencing a strong recovery as it approaches 2025, coinciding with the 25th anniversary of the Hong Kong Stock Exchange Group, which is enhancing capital flow between China and the world [1][3]. Market Performance - By the end of September, the new stock issuance scale on the Hong Kong Stock Exchange reached HKD 182.9 billion, more than doubling compared to the same period in 2024, with nearly 300 public listing applications currently being processed [3][4]. - The average daily trading volume in the Hong Kong securities market reached HKD 256.4 billion, a year-on-year increase of 126% [5]. IPO Market Dynamics - The Hong Kong IPO market has regained its top position globally by the end of September, with refinancing activities also growing rapidly, totaling HKD 456.1 billion, which is more than double the new stock market fundraising during the same period [4][5]. - The A+H listing model has further developed, with nearly half of the new stock total coming from A+H listed companies, indicating closer integration between mainland and Hong Kong markets [3][4]. International Investment Trends - International investors are showing strong interest in Hong Kong IPOs, with long-term funds from Europe, the Middle East, and emerging markets actively participating in the issuance of Chinese tech companies, reflecting growing confidence in China's technological innovation [3][4]. Regulatory and Market Innovations - The Hong Kong Stock Exchange has implemented various reforms to enhance market vitality, including measures to optimize the listing process for tech companies and improve market quality and transparency [4][6]. - Recent initiatives include the launch of the "Hang Seng Biotechnology Index Futures" to provide diversified risk management tools for investors, responding to the rising interest in the biotechnology sector [6][7]. Future Outlook - The Hong Kong Stock Exchange aims to enhance its international competitiveness and continue optimizing its listing system and product offerings to meet the diverse needs of global investors, particularly from mainland China [7].

Market Overview - The Hang Seng Index fell by 245.78 points, a decrease of 0.94%, closing at 25,781.77 points [1] - The total turnover for the day was 227.536 billion HKD [1] - The Hang Seng China Enterprises Index dropped by 78.88 points, closing at 9,223.78 points, a decline of 0.85% [1] - The Hang Seng Tech Index decreased by 84.85 points, closing at 5,923.09 points, a drop of 1.41% [1] Blue-Chip Stocks - Tencent Holdings decreased by 1.11%, closing at 623.5 HKD [1] - Hong Kong Exchanges and Clearing fell by 1.58%, closing at 422.4 HKD [1] - China Mobile declined by 0.88%, closing at 84.45 HKD [1] - HSBC Holdings increased by 0.1%, closing at 102.5 HKD [1] Local Hong Kong Stocks - Cheung Kong Holdings fell by 0.26%, closing at 37.86 HKD [1] - Sun Hung Kai Properties decreased by 1.44%, closing at 92.35 HKD [1] - Henderson Land Development dropped by 0.87%, closing at 27.3 HKD [1] Chinese Financial Stocks - Bank of China decreased by 0.23%, closing at 4.36 HKD [1] - China Construction Bank fell by 0.13%, closing at 7.81 HKD [1] - Industrial and Commercial Bank of China increased by 0.17%, closing at 5.96 HKD [1] - Ping An Insurance dropped by 0.72%, closing at 55.5 HKD [1] - China Life Insurance decreased by 2.33%, closing at 24.36 HKD [1] Oil and Petrochemical Stocks - Sinopec increased by 0.24%, closing at 4.13 HKD [1] - PetroChina rose by 1.15%, closing at 7.89 HKD [1] - CNOOC increased by 0.93%, closing at 19.5 HKD [1]

Core Insights - China's investment opportunities have regained global investor attention due to economic policies and technological innovations since September last year [1] - The Hong Kong market has shown strong performance, with record trading volumes in the securities and derivatives markets, and new stock market financing returning to the top globally [1] Group 1: Market Performance - As of September 30, 2023, the total IPO financing in Hong Kong reached HKD 182.9 billion, more than doubling compared to the same period in 2024 [3] - The average daily trading volume in the Hong Kong securities market reached HKD 256.4 billion, a 126% year-on-year increase [5] - The average daily trading volume for the derivatives market increased by 11% [5] Group 2: Investor Participation - There has been a notable increase in overseas investor participation in new stock subscriptions, particularly from Europe, the Middle East, and emerging markets [3] - The A+H listing model has developed further, with nearly half of the new stock financing in the first nine months coming from A+H listed companies [3] Group 3: Market Structure and Reforms - Recent listing policy reforms have enhanced the vitality of the Hong Kong capital market, attracting high-quality companies, especially in technology [4] - The "Tech Company Fast Track" launched in May aims to assist specialized technology and biotech companies in preparing for listings more efficiently [4] Group 4: Connectivity Mechanisms - The average daily trading volume for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached RMB 206.4 billion, a 68% year-on-year increase [7] - The Southbound and Northbound ETF trading volumes have also seen significant activity, with Southbound ETFs averaging HKD 4.2 billion and Northbound ETFs averaging RMB 3.2 billion in daily trading [7] Group 5: Future Outlook - The company plans to continue optimizing listing arrangements and expanding connectivity mechanisms to promote the joint development of capital markets in both regions [9]