Core Viewpoint - The Hong Kong Stock Exchange (HKEX) has announced a reduction in the minimum price fluctuation unit for trading securities, effective August 4, aimed at lowering transaction costs and enhancing market efficiency [1][3][6]. Summary by Sections Minimum Price Fluctuation Adjustment - The minimum price fluctuation for securities priced between HKD 10 and HKD 20 will be reduced from HKD 0.02 to HKD 0.01, and for those priced between HKD 20 and HKD 50, it will be reduced from HKD 0.05 to HKD 0.02 [2][5]. - This adjustment applies to stocks, Real Estate Investment Trusts (REITs), and equity warrants [2][4]. Benefits of the Adjustment - The initiative is expected to lower trading costs, facilitate order execution at expected prices, improve market efficiency, and enhance the price discovery function [3][6]. - The HKEX plans a second phase of adjustments in mid-2026, which will further reduce the minimum price fluctuation for securities priced between HKD 0.5 and HKD 10 by 50% [3][8]. Settlement Cycle Changes - The HKEX is also considering shortening the stock settlement cycle from T+2 to T+1, aligning with international practices [10][11]. - This change aims to reduce market risk and improve capital efficiency for market participants [15]. Market Context - The HKEX has been actively working on reforms to lower transaction costs and enhance liquidity, with the goal of increasing its international competitiveness [3][10]. - As of mid-2025, the HKEX is expected to have over 2,600 listed companies, with an average daily trading volume of HKD 240.2 billion [13].

Group 1 - Goldman Sachs raised the earnings per share forecast for Hong Kong Exchanges and Clearing (HKEX) for 2025, 2026, and 2027 by approximately 4% based on better-than-expected average daily trading volume [1] - The target price for HKEX was increased by 11%, from HKD 450 to HKD 500, corresponding to a price-to-earnings ratio of 40 times for 2026 [1] - Despite the upward revision of earnings estimates, HKEX's stock price remains about 20% lower than its peak in 2021, even as average daily trading volume in cash equities has reached a historical high of over HKD 200 billion [1] Group 2 - The number of IPO applications is nearing the peak levels of 2021, but the pace of new listings is still in the mid-cycle [2] - Key market activity indicators, such as turnover rate and the ratio of small to large-cap stock trading, are above the historical 90th percentile, yet the market's valuation relative to GDP is at historical average levels [1][2] - The average year-on-year growth in earnings per share for HKEX is projected to reach 42% from Q4 2024 to Q1 2025, with a 29% growth expected in Q2 2025, which is 3 to 4 times the normal growth rate [2]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is implementing a phased reduction in the minimum price fluctuation for stocks, aimed at lowering trading costs and enhancing market efficiency, with the first phase effective from August 4, 2023 [1][6]. Group 1: Phase One Implementation - The first phase will adjust the minimum price fluctuation for stocks priced between HKD 10 to 20 from HKD 0.02 to HKD 0.01, and for stocks priced between HKD 20 to 50 from HKD 0.05 to HKD 0.02, representing a reduction of 50% and 60% respectively [5][9]. - A preparatory period of at least six months is allocated before the implementation of both phases, with the first phase set to be reviewed after its implementation [5][10]. - A pre-launch test is scheduled for August 2, 2025, to ensure that market participants are ready for the changes [7][8]. Group 2: Phase Two Considerations - The second phase is expected to be implemented around mid-2026, contingent on the review of the first phase's effectiveness [4][6]. - Concerns have been raised regarding the potential impact of the second phase on lower-priced securities, particularly regarding the narrowing of bid-ask spreads and its effect on liquidity [9][10]. - HKEX believes that the reduction in minimum price fluctuation will lower transaction costs for active investors, thereby increasing trading volume and market liquidity [10].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is implementing a significant change by reducing the minimum price fluctuation for certain stocks, which is expected to lower trading costs and enhance market efficiency [1][4]. Summary by Sections Phase One Implementation - The first phase of the adjustment will take effect on August 4, 2023, focusing on stocks priced between HKD 10 to 20 and HKD 20 to 50, with minimum price fluctuations reduced from HKD 0.02 to HKD 0.01 and from HKD 0.05 to HKD 0.02, respectively [1][6]. - The adjustments represent a 50% reduction for stocks priced between HKD 10 and 20, and a 60% reduction for those priced between HKD 20 and 50 [5]. Consultation and Support - The HKEX conducted a consultation process that began in June 2022, receiving 110 responses from various market participants, with a majority supporting the proposed changes [4][9]. - The feedback indicated a consensus on the positive impact of smaller minimum price fluctuations on market liquidity [9][10]. Future Phases - A second phase is planned for mid-2026, contingent on the evaluation of the first phase's effectiveness, with a six-month preparation period before implementation [5][10]. - The second phase will also target stocks priced between HKD 0.5 and 10, proposing a 50% reduction in minimum price fluctuation [5]. Market Impact and Concerns - Some market participants, particularly traders and retail investors, expressed concerns about the potential impact of the second phase on lower-priced securities, fearing it may narrow bid-ask spreads and hinder profitability [8][10]. - The HKEX acknowledged these concerns, stating that lower minimum price fluctuations could reduce trading costs and improve liquidity, thus benefiting public investors overall [10].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is launching a new communication platform called "Hong Kong Stock Exchange Connect" (Connect) to enhance interaction between listed issuers and HKEX, and to modernize the market infrastructure in Hong Kong [1][2]. Group 1: Platform Features - "Connect" is a secure web-based electronic platform that allows listed issuers to make public disclosures, submit case materials, and communicate with HKEX, replacing current email exchanges and electronic form submissions [3]. - The platform will feature a user-friendly interface with information alerts, workflow tracking, guidance, and automated reminders to assist issuers in meeting their compliance and reporting requirements [4]. - The platform is expected to be free of charge for issuers, as HKEX has indicated it will not impose fees for using the issuer platform [3]. Group 2: Implementation Timeline - The platform is scheduled to officially launch in 2026, with a trial version available in the second half of 2025 for users to familiarize themselves with its functionalities [4]. - Guidelines for account opening and user registration will be released by the end of 2025, with phased implementation for document submission starting in the second quarter of 2026 [4]. Group 3: Regulatory Changes - The introduction of "Connect" is part of HKEX's initiative to enforce mandatory electronic submission of documents, contributing to the establishment of a paperless securities market [5][7]. - Currently, while most documents can be submitted electronically, some still require physical copies, particularly for new listings or certain approval processes [6]. - HKEX plans to mandate that all documents be submitted electronically through "Connect," eliminating the requirement for multiple copies of the same document [7].

Core Viewpoint - The valuation of Hong Kong Stock Exchange (HKEX) is projected to have a lower limit of 30 times PE and an upper limit approaching 70 times, driven by fundamentals and liquidity [1] Valuation History - Historical PE ranges for HKEX: 2014-2015 PE ranged from 29 to 67, benefiting from the launch of Stock Connect and easing investment restrictions; 2017-2018 PE ranged from 28 to 54, influenced by the opening of Shenzhen-Hong Kong Stock Connect and tightening liquidity due to U.S.-China tensions; 2020-2021 PE ranged from 29 to 68, with reforms attracting new economy and Chinese concept stocks [1] - Current PE for HKEX is at 38 times, with a favorable outlook due to the Federal Reserve's interest rate cuts and support from mainland China [1] Market Dynamics - The core factor for HKEX's profitability is Average Daily Turnover (ADT), calculated as total market capitalization multiplied by turnover rate [1] - Recent reforms at HKEX aim to attract A/H listed companies and facilitate the return of Chinese concept stocks, increasing the market capitalization of new economy sectors from 17% in 2018 to 35% in 2025 YTD [1] - Southbound capital inflows are enhancing ADT and turnover rates, driven by low interest rates and asset scarcity in mainland China, leading to increased participation from long-term institutional investors and individual investors [1] Financial Projections - The company is rated as a buy, with a projected upside of 24% based on relative PE valuation, targeting a PE of 42 times and a market value of HKD 692 billion [2] - Expected net profits for the company from 2025 to 2027 are estimated at HKD 165 billion, 179 billion, and 188 billion, reflecting year-on-year growth of 26%, 9%, and 5% respectively [2]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) is set to launch a new communication platform called "HKEX Connect" to enhance interaction between listed issuers and the exchange, aiming to modernize market infrastructure and improve efficiency and transparency in the Hong Kong financial market [1][2]. Group 1 - The trial version of "HKEX Connect" will be available in the second half of 2025, with official phased usage starting in the second quarter of 2026 [2]. - The platform will serve as the primary communication channel for issuers and HKEX, allowing for the submission and publication of regulatory announcements and confidential communications regarding regulatory matters [1]. - The interface of "HKEX Connect" is designed to be user-friendly, featuring smart compliance tools such as information alerts, workflow tracking, guidelines, and automatic reminders to assist issuers in meeting daily compliance and reporting requirements [1]. Group 2 - Following the launch of "HKEX Connect," HKEX will redesign its market information page on its website to integrate and display issuer information, including management profiles, company events, and other important dates [1]. - Issuers will be able to update or upload content on "HKEX Connect," allowing investors to access real-time information, thereby enhancing market transparency [1].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to experience verifiable growth, leading to a potential revaluation [1] - The current price-to-earnings (PE) ratio is 38 times, with an upward potential of 24% based on a target PE of 42 times, resulting in a reasonable market value of 692 billion HKD [6][7] - The company benefits from its monopoly status and integrated clearing platform, which allows it to earn commissions from Average Daily Turnover (ADT) [6][7] Financial Data and Earnings Forecast - Revenue projections (in million HKD) for the years 2023 to 2027 are as follows: - 2023: 20,516 (11% growth) - 2024: 22,374 (9% growth) - 2025E: 26,978 (21% growth) - 2026E: 29,020 (8% growth) - 2027E: 29,857 (3% growth) [4] - Net profit attributable to shareholders (in million HKD) is forecasted as: - 2023: 11,862 (18% growth) - 2024: 13,050 (10% growth) - 2025E: 16,477 (26% growth) - 2026E: 17,936 (9% growth) - 2027E: 18,775 (5% growth) [4] - Earnings per share (in HKD) are projected to be: - 2023: 9.36 - 2024: 10.29 - 2025E: 13.00 - 2026E: 14.15 - 2027E: 14.81 [4] Valuation Review - The valuation range for the company is estimated between 30 to 70 times PE, with fundamental and liquidity factors being the core drivers [6][19] - The report emphasizes that the company’s growth potential is supported by the increasing market capitalization of new economy sectors, which have risen from 17% in 2018 to 35% in 2025 YTD [6][59] - The report highlights that the ADT is a critical factor influencing the company's profitability, with expectations for ADT to remain robust due to increased connectivity between mainland China and Hong Kong [6][8]

金十数据7月24日讯，美银证券发布研报称，预期港交所(00388.HK)上半年纯利为80亿港元，较去年同 期上升31%。第二季日均成交额料维持在2,380亿港元的高水平(去年同期为1220亿港元)，支持强劲的交 易费收入和结算费收入。美银证券维持港交所全年盈利不变，并对明年和后年盈利预测上调6%至7%。 目标价由440港元升至520港元，相当于预测合并2025至2026年市盈率40倍，重申"买入"评级。 美银证券：升香港交易所目标价至520港元 重申"买入"评级 ...

Group 1 - The Hong Kong Monetary Authority (HKMA) will announce a summary of the "Stablecoin Issuer Licensing Regime" next week, addressing recent scams related to digital assets and stablecoins [1] - The "Stablecoin Ordinance" came into effect on August 1, making it illegal to promote unlicensed stablecoins to the public in Hong Kong [1] Group 2 - U.S. stock indices closed higher, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, to 45010.29 points [2] - The Nasdaq China Golden Dragon Index increased by 0.75%, with notable gains in stocks like iQIYI and Pinduoduo [2] Group 3 - Goldman Sachs and BNY Mellon are set to create a tokenized money market fund for institutional investors, following the establishment of a stablecoin regulatory framework in the U.S. [3] - The tokenized money market fund will provide returns to holders, appealing to hedge funds, pension funds, and corporate cash management [3] Group 4 - Morgan Stanley predicts that the Federal Reserve will not lower interest rates this year, potentially delaying any cuts until March 2026 [4] Group 5 - India has resumed issuing tourist visas to Chinese citizens, leading to a tenfold increase in flight searches to Delhi [5] - Business visa applications to India have increased by 63% year-on-year [5] Group 6 - The average price of solar-grade polysilicon in China increased by 12.23% week-on-week, with n-type re-investment material averaging 4.68 million yuan per ton [6] Group 7 - The National Development and Reform Commission reported a slight decrease in pig farming profits, with average profits per head falling below 50 yuan [7][8] Group 8 - The State Council has announced a temporary tax exemption policy for goods processed in Hainan Free Trade Port, encouraging local industries [9] Group 9 - Hong Kong's new stock financing amount reached $14.1 billion in the first half of 2025, a 695% increase year-on-year, significantly outpacing global growth [10] - The Hang Seng Index rose over 20% during the same period, driven by renewed investor interest [10] Group 10 - State Grid New Energy Holdings signed a capital increase project worth 36.5 billion yuan, marking a record in cash fundraising in state asset transactions [11] Group 11 - Alibaba Cloud has launched the Qwen3-Coder AI programming model, offering competitive pricing compared to other models [12] Group 12 - Times Electric expects its IGBT chip production lines to reach full capacity by the end of 2025, with significant expansions planned [13] Group 13 - Marco Digital Technology plans to subscribe to preferred shares of the stablecoin payment platform KUN for a total of $6 million [14] Group 14 - Zhongchuang Innovation Holdings anticipates a net profit increase of approximately 70% to 90% for the first half of 2025 [15][16] Group 15 - UBTECH has launched the Walker S2 industrial humanoid robot, designed for smart manufacturing applications [17] Group 16 - Western Cement expects a 80% to 100% increase in net profit for the first half of 2025 compared to the previous year [18] Group 17 - SenseTime plans to issue approximately 1.67 billion new Class B shares to raise about 24.98 billion HKD, strengthening its position in the generative AI sector [19] Group 18 - Nine Dragons Paper has announced a price increase of 30 yuan per ton, driven by rising costs and new national standards [20]