Summary of Key Points from the Conference Call Industry Overview - The report presents the **Top 10 Asia Pac Ideas for Q1 2026**, focusing on stock recommendations for companies in the Asia Pacific region that are expected to have significant market and business-related catalysts in the upcoming quarter [1][2][10]. Company Recommendations - The **10 Buy-rated stocks** identified for Q1 2026 are: - **ASX Ltd**: Target Price (TP) of AUD 64.10, representing a 27% upside [3][5]. - **Chroma ATE**: TP of TWD 1,180, with a 38% upside [3][5]. - **Damai Entertainment**: TP of HKD 1.10, indicating a 22% upside [3][5]. - **H World Group**: TP of USD 62.00, with a 28% upside [3][5]. - **LG Electronics India**: TP of INR 1,840, representing a 23% upside [3][5]. - **Mitsubishi Heavy Industries**: TP of JPY 4,900, indicating a 15% upside [3][5]. - **Montage**: TP of CNY 155.00, with a 16% upside [3][5]. - **Ping An Insurance**: TP of HKD 74.00, representing a 3% upside [3][5]. - **Singtel**: TP of SGD 5.50, indicating a 21% upside [3][5]. - **Tencent Holdings**: TP of HKD 780.00, with a 23% upside [3][5]. Investment Rationale - The selection process involved consultations with BofA Fundamental Equity Research analysts and sector heads to ensure a diversified list of stocks with strong potential for outperforming or underperforming peers [2][11]. - The report emphasizes that the stocks are chosen based on their **Buy** or **Underperform** ratings, ensuring that only high-conviction ideas are included [2][14]. Performance and Updates - The list will be published at the beginning of each quarter and will remain unchanged unless there are significant developments affecting the stocks [4][15]. - Stocks may be re-evaluated for subsequent quarters based on ongoing catalysts and market conditions [16]. Additional Insights - **ASX Ltd**: The company has seen a share price decline of over 28% since mid-June, trading more than one standard deviation below historic levels, indicating potential for recovery [34]. - **Chroma ATE**: The company is positioned well in the semiconductor capital equipment industry, with expected growth driven by demand for AI server infrastructure and system-level testing [41][56]. - **Damai Entertainment**: As a subsidiary of Alibaba, it operates in various entertainment sectors, including live performance ticketing and content production, indicating a diversified revenue stream [64]. Risks and Considerations - Potential risks include regulatory interventions, market conditions affecting revenue growth, and competition within the semiconductor equipment sector [37][60]. - The report highlights the importance of monitoring macroeconomic factors and sector-specific developments that could impact the performance of the recommended stocks [7][60]. This summary encapsulates the key points from the conference call, focusing on the companies and industry dynamics relevant to the investment recommendations for Q1 2026.

Summary of Hong Kong Exchanges (0388.HK) Research Call Company Overview - **Company**: Hong Kong Exchanges and Clearing Limited (HKEX) - **Ticker**: 0388.HK - **Market Cap**: HK$538.3 billion / $69.1 billion Key Financial Updates - **Revised EPS Estimates**: - 2025E: -0.5% - 2026E: nil - 2027E: -0.6% - 2028E: -0.6% - **Target Price**: Revised to HK$546 from HK$550, implying a 39X P/E for 2026E [1][2][3] Revenue Projections - **Revenue Estimates**: - 2024: HK$22,374 million - 2025E: HK$28,525.4 million - 2026E: HK$29,644 million - 2027E: HK$31,457.6 million [3] Earnings Per Share (EPS) Estimates - **EPS Estimates**: - 2024: HK$10.32 - 2025E: HK$13.64 - 2026E: HK$14.10 - 2027E: HK$14.97 [3] Valuation Metrics - **P/E Ratios**: - 2024: 25.4X - 2025E: 31.3X - 2026E: 30.3X - 2027E: 28.5X [3] Dividend Information - **Dividend Per Share (DPS)**: - 2024: HK$9.26 - 2025E: HK$12.20 - 2026E: HK$12.69 - 2027E: HK$13.48 - **Dividend Yield**: - 2024: 3.5% - 2025E: 2.9% - 2026E: 3.0% - 2027E: 3.2% [3] Investment Thesis - **Rating**: Buy - **Investment Thesis**: No change to the investment thesis despite revisions in EPS estimates [1][2] Risks Identified - **Downside Risks**: 1. Increased competition from onshore capital markets 2. Lower trading velocity in the cash market 3. Fee pressure due to reduced fees onshore in China 4. Sustained deflationary environment in China [2] Market Context - **Current Price**: HK$426.80 - **Upside Potential**: 27.9% to target price of HK$546 [3] Additional Notes - The report indicates potential conflicts of interest due to Goldman Sachs' business relationships with HKEX [4][14] - The research is part of Goldman Sachs' broader investment analysis and is intended for clients [33][35] This summary encapsulates the essential financial metrics, investment outlook, and risks associated with Hong Kong Exchanges, providing a comprehensive overview for potential investors.

Core Viewpoint - Nasdaq reported its monthly volumes for December 2025, along with quarterly volumes, estimated revenue capture, number of listings, and index statistics for the quarter ending December 31, 2025 [1] Group 1: Monthly and Quarterly Volumes - The report includes detailed statistics on trading volumes for December 2025 and the entire quarter [1] - Nasdaq provides a data sheet with this information available on its Investor Relations website [1] Group 2: Company Overview - Nasdaq is a global technology company that serves corporate clients, investment managers, banks, brokers, and exchange operators [1] - The company aims to enhance liquidity, transparency, and integrity in the global economy through its diverse offerings [1] - Nasdaq's services include data, analytics, software, exchange capabilities, and client-centric solutions to help clients achieve their business goals [1]

Core Insights - Cboe Global Markets reported December and full year 2025 trading volume statistics, highlighting record trading volumes across various segments, including options and equities [1][4]. Trading Volume Highlights - Total volume traded across Cboe's four options exchanges reached 4.6 billion contracts in 2025, with an average daily volume (ADV) of 18.4 million contracts, marking the sixth consecutive record-breaking year [4]. - Multi-listed options accounted for 3.4 billion contracts traded, with an ADV of 13.5 million contracts [4]. - Proprietary index options product suite traded 1.2 billion contracts, achieving an ADV of 4.9 million contracts [4]. - S&P 500 Index (SPX) options traded 970.6 million contracts, with an ADV of 3.9 million contracts, and SPX zero-days-to-expiry (0DTE) options reached an ADV record of 2.3 million contracts, representing 59% of total SPX volume [4]. - Cboe Volatility Index (VIX) options traded 215.6 million contracts, with an ADV of 862 thousand contracts [4]. U.S. Equities Performance - BIDS Trading reported a yearly ADV record of 155 million matched shares, reflecting a 96% increase year-over-year [5]. European Equities and Global FX - Cboe Europe Equities achieved a record yearly average daily notional volume (ADNV) of €12.8 billion and a market share of 25% [9]. - Global FX reported a spot ADNV of $49.7 billion, surpassing the previous year's record of $45.4 billion [9]. Revenue Per Contract Guidance - Projected RPC/net capture metrics for the fourth quarter of 2025 indicate an increase in average revenue per contract across various products, including multi-listed options at $0.075 and index options at $0.937 [8].

Capital Markets 2026 Outlook Summary Industry Overview - The report focuses on the Capital Markets industry, specifically analyzing the performance and outlook for various segments including Alternative Asset Managers, Traditional Asset Managers, Brokers, Trust Banks, and Exchanges [2][8]. Key Themes and Insights Theme 1: Capital Markets Recovery - A significant recovery in Capital Markets is anticipated, particularly in M&A and Equity Capital Markets, with global announced M&A volumes increasing over 40% year-on-year in 2025 [28]. - IPO activity has also seen a meaningful re-acceleration, although both M&A and IPO volumes remain below cyclical averages, indicating potential for further growth [28][39]. - Companies such as CG, BX, TPG, and KKR are highlighted for their substantial earnings exposure to Capital Markets-sensitive revenues, estimated at 30%-40% of total revenues [29]. Theme 2: Interest Rates and Asset Growth - The Federal Reserve's funds rate is projected to decline to 3% by the end of 2026, with a steepening yield curve expected [6]. - Wealth Brokers and Trust Banks are anticipated to experience cash revenue and net interest income (NII) growth in 2026, driven by increased balances and lower asset sensitivity compared to previous cycles [6][15]. - Specific firms like RJF and SCHW are expected to outperform consensus estimates, with RJF projected to grow by 2% in 2026 and 7% in 2027 [6]. Theme 3: Alternative Managers' Growth - Alternative Asset Managers are expected to see management fee growth accelerate to a 16% compound annual growth rate (CAGR) in 2026-2027, up from 11% in 2023-2025 [6][11]. - Growth is anticipated to broaden beyond Credit, with Private Equity and Real Estate showing signs of recovery, alongside continued strength in Infrastructure and AI sectors [6]. Theme 4: Traditional Managers' Outlook - Traditional Asset Managers are expected to see long-term organic growth accelerate to over 1% in 2026, with firms like AMG and BLK leading in organic base fee growth [7]. - Growth drivers include increased flows into Fixed Income, Active ETFs, and leveraging distribution capabilities for Private Markets strategies [7]. Theme 5: Exchange Volume Challenges - Exchanges are facing tough year-on-year volume comparisons, particularly in 2026, following record volumes in 2025 [7]. - However, sectors such as Energy and Equities are expected to deliver meaningful volume growth, supported by retail investor participation and recovery in IPO markets [7][14]. Additional Insights - The report indicates a positive outlook for Trust Banks, with firms like BK and STT expected to benefit from accelerating deposit growth and favorable NII outlooks [15]. - The report emphasizes the importance of expense management and capital returns in driving EPS growth across various segments [15][12]. - Despite a challenging environment, select areas within the Capital Markets are expected to see structural growth, particularly in newer product areas like event contracts and prediction markets [16]. Conclusion - The Capital Markets industry is poised for a recovery driven by improving financial conditions, increased M&A and IPO activity, and growth in alternative and traditional asset management sectors. The outlook remains broadly constructive, with specific firms identified as key beneficiaries of these trends [2][8].

Core Viewpoint - The Chicago Mercantile Exchange (CME) has raised margin requirements primarily due to market volatility, aiming to protect clearinghouses and ensure system stability during price fluctuations [1] Group 1: Margin Requirement Adjustments - The CME regularly reviews margin requirements to ensure traders can meet obligations during significant price movements [1] - The decision to raise margins is intended to safeguard the clearinghouse and maintain robustness under volatile conditions [1] Group 2: Market Reactions - Analysts report that the margin increase has led to large-scale trading and forced liquidations at the New York Mercantile Exchange, resulting in a surge in trading volume [1] - This surge in trading activity may temporarily boost CME's revenue [1] Group 3: Trader Sentiment - Some traders criticize the CME's actions as an attempt to suppress prices [1] - Analysts are closely monitoring the impact of margin increases on market behavior, with concerns that it may dampen trading interest and negatively affect long-term participation in the precious metals market [1]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and opinions [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any of the companies mentioned [1]. - The article expresses personal opinions of the analyst and does not reflect the views of Seeking Alpha as a whole [2]. - The article emphasizes that past performance is not indicative of future results, and no investment recommendations are provided [2].

Core Viewpoint - The future of exchanges will be shaped by increased volatility, supportive U.S. economic policies, higher acceptance of digital assets, and increased retail trading, with a focus on comparing Coinbase Global Inc. (COIN) and CME Group (CME) for long-term growth potential [1] Group 1: Coinbase Global Inc. (COIN) - Coinbase is strategically positioned to benefit from President Trump's pro-crypto stance and aims to transform into an "everything exchange" offering a comprehensive range of financial services [3] - The company is expanding its product ecosystem, including enabling Solana on Base, launching decentralized exchange trading, and introducing new offerings like prediction markets and tokenized equities [4][5] - Coinbase's strategy extends beyond trading, promoting stablecoins for online payments and collaborating with Kalshi for prediction markets, reflecting efforts to diversify revenue streams [5][6] - The company is acquiring The Clearing Company to strengthen its presence in prediction markets, marking its tenth acquisition this year [6] - Coinbase has deepened integration with traditional finance by partnering with major institutions and discussing pilot programs for stablecoins and crypto trading services [7] - Despite facing profitability pressure from high operating costs and market volatility, Coinbase's expanding ecosystem and improving regulatory outlook support a long-term growth narrative [8] Group 2: CME Group (CME) - CME Group is the largest futures exchange globally, benefiting from a strong global presence, compelling product portfolio, and focus on over-the-counter clearing services [2] - The company supports global risk management across various asset classes, including digital assets, and is well-positioned for long-term growth through ongoing product innovation [10] - CME is experiencing rising electronic trading volumes and growing adoption of crypto-related products, supported by a favorable regulatory environment under President Trump [11] - The company's ability to grow organically and benefit from heightened market volatility translates into higher trading volumes and revenues [12] - CME's strong network effects and disciplined cost management enhance margins, allowing for regular capital returns through dividends and share repurchases [14] - However, CME faces concentration risk as interest rate and equity products account for a significant portion of revenues, and increasing competition from crypto platforms poses challenges [15] Group 3: Financial Estimates and Performance - The Zacks Consensus Estimate for COIN's 2025 revenues implies a 13.5% year-over-year increase, while EPS is expected to rise 4.7% [16] - In contrast, CME's 2025 revenues are projected to increase by 5.1%, but EPS is expected to decline by 4.3% [18] - COIN shares have lost 3.5% year-to-date, while CME shares have rallied 19% in the same period [21] - Coinbase is trading at a forward P/E multiple of 40.6, lower than its median of 46.1, while CME's forward P/E is at 23.8, higher than its median of 22.4 [22] Group 4: Conclusion - Coinbase benefits from a diversified revenue base, including trading fees, staking, custodial services, and derivatives, driven by growing institutional demand [23] - CME Group is well-positioned for growth through its efforts to expand futures products, diversify derivative offerings, and maintain a strong liquidity position [24]

Core Insights - Bitget has launched a significant upgrade to its mobile application, providing a unified interface for 120 million users to access cryptocurrency, tokenized stocks, on-chain assets, and traditional financial markets [2][12] Group 1: Application Upgrade - The updated application features a consolidated market overview, allowing users to view various asset categories without switching pages, thus reducing operational friction when managing diversified portfolios [5][11] - The stock section has been redesigned for clearer market context and faster decision-making, supporting over 100 on-chain stock tokens and more than 30 mainstream stock futures [6][11] Group 2: Trading Features - Users can trade forex currency pairs, precious metals, commodities, and major indices using USDT as margin, with leverage options up to 500 times for certain tools [11] - The upgrade aims to simplify the trading process across cryptocurrency, tokenized stocks, and traditional markets, addressing fragmentation in modern trading workflows [11][12] Group 3: Strategic Vision - The latest upgrade aligns with Bitget's UEX strategy, focusing on unified access across asset classes, continuous market availability, and capital efficiency [12] - Bitget continues to enhance its multi-asset trading infrastructure, with plans for further feature upgrades and market expansion [12][13]

Core Viewpoint - Bitget, the world's largest panoramic exchange (UEX), has launched a comprehensive mobile app upgrade aimed at enhancing multi-asset trading experiences for its 120 million users [2]. Group 1: App Upgrade Features - The updated app introduces a unified interface that allows users to access cryptocurrencies, tokenized stocks, on-chain assets, and traditional financial markets through a single navigation process [2][5]. - Users can now view asset performance metrics, portfolio values, and market snapshots in a consolidated layout, reducing operational friction when managing diversified portfolios across multiple markets [5]. - The stock section has been redesigned to provide clearer market context and faster decision-making support, allowing direct access to industry-based views, real-time price changes, trending stock themes, and an integrated earnings calendar [5]. Group 2: Trading Capabilities - The platform currently supports over 100 types of on-chain stock tokens and more than 30 mainstream stock futures, enabling users to trade shares of leading global companies like Apple, Tesla, Nvidia, and Alphabet using USDT without traditional brokerage account requirements [5]. - A flexible margin model and leverage of up to 25 times support various trading strategies while ensuring consistent capital management across asset classes [5]. - The newly introduced TradFi section allows users to trade forex currency pairs, precious metals, commodities, oil, and major indices using USDT as margin, with leverage options up to 500 times [9]. Group 3: Strategic Goals and Future Plans - This upgrade aligns with Bitget's UEX strategy, which focuses on unified access across asset classes, continuous market availability, and capital efficiency [10]. - As Bitget continues to enhance its multi-asset trading infrastructure, further feature upgrades and market expansions are expected in the future [10].