Core Viewpoint - Hong Kong Stock Exchange is enhancing its collateral arrangements for securities and derivatives clearinghouses to improve market efficiency and reduce costs for participants [1] Group 1: Changes in Collateral Arrangements - The exchange will adjust the interest calculation method for cash collateral, aligning it with international market standards and calculating it daily based on the overnight reference rate minus fees [1] - The new fee structure for cash collateral will set the fee at 0.8% from October 2025 to December 2026, decreasing by 10 basis points annually until it reaches 0.5% by the end of 2028 [1] - The financing cost for non-cash collateral will be reduced from 0.5% per year to 0.25% [1]

格隆汇9月1日｜香港交易所：2025年上半年收入及其他收益为140.76亿元，较2024年上半年上升33%； 股东应占溢利为85.19亿元，较2024年上半年上升39%。 ...

人民财讯9月1日电，香港交易所披露2025年中期业绩报告，集团2025年上半年收入及其他收益和溢利创 历来半年度新高。2025年上半年收入及其他收益为140.76亿港元，较2024年上半年上升33%；股东应占 溢利为85.19亿港元，较2024年上半年上升39%。 ...

Core Insights - The Hong Kong Stock Exchange (HKEX) is actively promoting economic and financial development in the Guangdong-Hong Kong-Macao Greater Bay Area, positioning itself as a key financial infrastructure [1] - Recent reforms in listing rules have made it easier for new economy companies, particularly in healthcare, renewable energy, and TMT sectors, to raise funds in Hong Kong, with over 60% of new stock financing coming from these industries [1] - HKEX has established various connectivity mechanisms with mainland financial markets, enhancing capital market openness and providing international investors with convenient access to Chinese markets [2] Group 1: Financial Development Initiatives - HKEX has implemented multiple listing rule reforms, allowing companies with dual-class share structures and biotech firms without revenue to list in Hong Kong [1] - In the first seven months of the year, Hong Kong's new stock market raised HKD 127.9 billion, ranking first globally [1] - There are currently over 200 listing applications being processed, many from high-tech companies in the Greater Bay Area [1] Group 2: Connectivity and Collaboration - HKEX has been working closely with mainland financial institutions to enhance connectivity through mechanisms like Stock Connect and Bond Connect, facilitating cross-border investment [2] - Ongoing collaborations with Shanghai and Shenzhen Stock Exchanges aim to optimize trading mechanisms, including the inclusion of REITs and a block trading mechanism [2] - HKEX is also developing a comprehensive fund platform in partnership with Shenzhen Stock Exchange to improve market efficiency and reduce trading costs [2] Group 3: Green Finance and Low-Carbon Transition - HKEX is committed to developing green finance in response to the global shift towards low-carbon economies, collaborating with mainland financial institutions [2] - Future plans include exploring opportunities for carbon market cooperation within the Greater Bay Area to support national dual carbon goals [2]

Group 1 - The Hong Kong Stock Exchange (HKEX) is actively promoting the economic and financial development of the Greater Bay Area, serving as a core financial infrastructure [1] - Recent reforms in listing rules have provided diverse and convenient channels for new economy companies to list in Hong Kong, including those with dual-class share structures and biotech firms without revenue [1] - New economy sectors, such as healthcare, renewable energy, and TMT, account for over 60% of new stock financing in Hong Kong, with total financing reaching HKD 127.9 billion from January to July, ranking first globally [1] Group 2 - HKEX is enhancing connectivity with mainland financial markets through mechanisms like Stock Connect and Bond Connect, facilitating international investment in China and providing mainland funds access to overseas assets [2] - Ongoing collaborations with the Shanghai and Shenzhen stock exchanges aim to optimize Stock Connect by including REITs and introducing block trading mechanisms [2] - HKEX is also focusing on green finance and low-carbon transition, seeking to explore carbon market cooperation opportunities with more financial institutions in the Greater Bay Area [2]

Core Insights - The seventh Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum was held in Guangzhou, focusing on comprehensive financial cooperation and development [1] - Hong Kong's financial market raised HKD 127.9 billion from January to July this year, ranking first globally, with over 200 listing applications currently being processed, many from high-tech companies in the Greater Bay Area [1] - The Hong Kong Stock Exchange (HKEX) has optimized its listing system for new economy companies, allowing dual-class share structures and biotech firms without revenue to list, with at least 60% of the financing coming from sectors like pharmaceuticals, new energy, and TMT [1] Listing and Regulatory Developments - In October 2024, HKEX and the Hong Kong Securities and Futures Commission will streamline the approval process for eligible A-share companies seeking to list in Hong Kong [1] - By May 2025, HKEX will launch a technology-focused channel to further optimize the application process for specialized technology and biotech companies [1] - In August 2025, HKEX will enhance new stock pricing and public holding requirements, easing restrictions to improve pricing efficiency and international competitiveness [1] Market Connectivity and Collaboration - The Shenzhen-Hong Kong Stock Connect has seen active trading, with cumulative transactions reaching approximately RMB 116 trillion by the end of July this year [2] - HKEX is collaborating with the Shanghai and Shenzhen stock exchanges to include block trading in the connectivity mechanism and optimize the inclusion of RMB counters in the Hong Kong Stock Connect [2] - HKEX is also working on a comprehensive fund platform with the Shenzhen Stock Exchange to enhance the fund distribution network and market efficiency [2] - The establishment of HKEX's subsidiary in Shenzhen, with over 200 employees, aims to leverage the region's technological and talent advantages to enhance market competitiveness [2]

Core Viewpoint - The article highlights the robust mid-term dividend distribution among Hong Kong-listed companies, driven by strong performance and a growing trend towards returning value to shareholders [1][5]. Group 1: Dividend Distribution Overview - As of August 28, 277 Hong Kong-listed companies announced mid-term dividend plans, with a total proposed dividend exceeding 380 billion HKD [1]. - Major state-owned enterprises, such as China Mobile and China Petroleum, are leading in dividend payouts, with each company distributing over 10 billion HKD [2]. - China Mobile plans to distribute a mid-term dividend of 2.75 HKD per share, reflecting a 5.8% year-on-year increase, while China Telecom aims to distribute approximately 182.3 billion HKD, with a payout ratio of 72% [2]. Group 2: Notable Companies and Their Dividends - CITIC Bank has increased its mid-term dividend to 104.6 billion RMB, achieving a payout ratio of 30.7% [3]. - Several companies, including China CRRC and Midea Real Estate, are initiating their first mid-term dividends, with China CRRC proposing a cash dividend of 31.57 billion RMB at a payout ratio of 43.57% [4]. - Aneng Logistics is also distributing its first dividend post-listing, with a total of 0.16 HKD per share, alongside a special dividend of 0.04 HKD per share [4]. Group 3: Factors Driving Dividend Growth - The trend of increasing dividends is supported by stable corporate performance, with nearly 60% of Hong Kong-listed companies reporting profit growth or returning to profitability [5][6]. - The regulatory environment is encouraging companies to enhance cash dividend distributions, particularly under the new "National Nine Articles" which strengthens dividend regulations [5]. - The established culture of high dividends in the Hong Kong market is attracting long-term investors, especially in a low-interest-rate environment, making dividend-paying stocks appealing [6].

Group 1 - Morgan Stanley has slightly raised its average daily trading volume (ADV) forecast for Hong Kong Exchanges and Clearing (HKEX) to HKD 230 billion for this year due to better-than-expected Q2 performance and strong ADV [1] - The ADV forecasts for 2026 and 2027 remain unchanged [1] - Morgan Stanley has increased its earnings per share (EPS) estimates for HKEX from 2025 to 2027 and maintained an "Overweight" rating, raising the target price from HKD 500 to HKD 508 [1]

Core Viewpoint - Morgan Stanley has updated its forecast for Hong Kong Exchanges and Clearing (HKEX) based on better-than-expected Q2 performance and strong average daily trading volume (ADV) to date [1] Summary by Category Performance Forecast - Morgan Stanley has slightly raised its ADV forecast for HKEX to HKD 230 billion for the current year, compared to the year-to-date ADV of HKD 245 billion as of August 22 [1] - The ADV forecasts for 2026 and 2027 remain unchanged at HKD 240 billion and HKD 265 billion, respectively [1] Earnings Projections - The earnings per share (EPS) forecasts for HKEX from 2025 to 2027 have been increased by 3.8%, 1.1%, and 1.1%, leading to growth rates of 25%, 5.3%, and 10.4% [1] Investment Rating - Morgan Stanley maintains an "Overweight" rating on HKEX, with the target price raised from HKD 500 to HKD 508 [1]

Core Insights - Hong Kong Stock Exchange (HKEX) has implemented various measures to enhance market activity, resulting in significant performance improvements in 2025 [1][2] - The exchange aims to continue enhancing its platform, infrastructure, and product offerings to provide diverse options, ample liquidity, and efficient connectivity for investors and issuers [1] Market Performance - In the first half of 2025, HKEX achieved record highs in multiple market metrics, with an average daily trading amount of HKD 240.2 billion, a year-on-year increase of 118% [2] - The average daily trading volume for futures and options exceeded 1.7 million contracts, up 11% year-on-year [2] - The Hong Kong ETF market saw a significant increase, with an average daily trading amount of HKD 33.8 billion, rising 184% compared to the same period last year [2] - Northbound and southbound trading through the Stock Connect also reached record highs, with an average daily trading amount of RMB 171.3 billion, a 32% increase from the first half of 2024 [2] Revenue Growth - HKEX reported a record revenue and other income of HKD 14.076 billion in the first half of 2025, a 33% increase from the same period in 2024 [3] - The increase in trading activity significantly contributed to revenue growth, with trading fees and system usage fees reaching HKD 4.906 billion, up 49.11% year-on-year [3] - Clearing and settlement fees amounted to HKD 3.155 billion, reflecting a year-on-year growth of 48.47% [3] - Nearly 90% of HKEX's profits are allocated for dividends, with a total interim dividend of approximately HKD 7.6 billion [3] IPO Market - HKEX regained the top position globally in terms of fundraising in the first half of 2025, welcoming 44 new listings, a 716% increase year-on-year [4] - Notable IPOs included CATL, which raised HKD 41 billion, marking the largest IPO on HKEX since February 2021 [4] - The number of companies waiting to go public reached 207, indicating a robust pipeline for new listings [4] - The total amount raised through refinancing reached HKD 244.8 billion, the highest for a half-year since 2021 [4] Strategic Initiatives - HKEX is advancing several strategic initiatives to solidify its role as a global hub, including extending the duration of interest rate swap contracts to 30 years to meet diverse risk management needs [5] - Plans to include RMB-denominated stocks in the Stock Connect are underway, enhancing connectivity between Hong Kong and mainland markets [5] - The introduction of the "Specialized Technology Company Route" allows tech firms to submit IPO applications confidentially, promoting a more accessible listing process [6] - HKEX has expanded its product offerings, including new stock options and the first Nasdaq-100 ETF listed in Asia, enhancing investor choices [6] Future Outlook - Despite various external uncertainties, HKEX remains cautiously optimistic about the market outlook for the second half of 2025, with confidence in its ability to adapt to changing conditions [6][7]