Core Viewpoint - The report from the Swiss IMD indicates that Hong Kong has regained its position as the third most competitive economy globally, reflecting its strong international status and the effectiveness of the "One Country, Two Systems" policy [1] Group 1: Hong Kong's Global Competitiveness - Hong Kong's global competitiveness ranking has risen to third place, marking its return to the top tier since 2019 [1] - The territory's tax policy and business regulations are ranked first globally, showcasing its favorable business environment [1] Group 2: Economic Indicators - In the first half of this year, the Hong Kong Stock Exchange led the world in fundraising, achieving a total of $14 billion [1] - There has been an 18% year-on-year increase in overseas visitors to Hong Kong in the first five months [1] - Several large international companies have relocated their headquarters to Hong Kong, indicating strong international confidence in the region [1]

Core Viewpoint - The recent prosperity of the Hong Kong stock market is attributed to years of continuous reforms, with significant growth in IPOs and secondary market trading attracting global attention [1] Group 1: Market Performance - As of the end of May, Hong Kong's IPO fundraising has exceeded HKD 76 billion (approximately USD 9.7 billion), which is about seven times the amount raised in the same period of 2024 and nearing last year's total of approximately USD 11 billion [3] - International investment banks predict that the total IPO amount for this year may exceed USD 20 billion [3] Group 2: Strategic Development - The CEO of Hong Kong Exchanges and Clearing (HKEX) emphasized the importance of cooperation and complementary development between mainland and Hong Kong exchanges, rather than competition [4] - The strong performance of recent IPOs in Hong Kong is largely due to renewed interest from international investors in Chinese concept stocks, highlighting Hong Kong's natural advantage in attracting global capital [4] Group 3: Market Infrastructure and Services - HKEX aims to enhance its service offerings to both enterprises and investors, adapting to the needs of quality listing resources and expanding the investor base [4] - The exchange has undergone reforms since 2018, allowing for a wider range of companies, including those that are not yet profitable, to list, which has led to a significant number of companies in the IPO pipeline [4] - HKEX is focused on developing a comprehensive product ecosystem that includes stocks, bonds, and commodities, while also emphasizing the importance of risk management tools [5] Group 4: Investor Engagement - The current market environment is attracting more international capital to the Chinese market, with significant growth potential for foreign investment participation [5] - The introduction of a Renminbi counter trading mechanism and enhancements to market infrastructure are aimed at improving the trading experience for investors [5]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) plays a crucial role as a bridge connecting the Chinese mainland market with the global market, capitalizing on the growth opportunities presented by the Chinese economy [1][8] - The company aims to enhance its infrastructure and market microstructure, expand its product ecosystem, and leverage technology to improve operational efficiency while attracting a diverse range of global investors [1][8] - HKEX is committed to sustainable development, supporting community projects through its charitable foundation and facilitating fundraising for green innovation companies [1][7] Group 1: Historical Context and Achievements - HKEX has evolved over 25 years into a resilient and vibrant international financial center, facilitating closer connections between China and the world through initiatives like the H-share mechanism and mutual market access programs [2][4] - The number of listed companies on HKEX has increased from 790 in 2000 to over 2,600 today, with mainland enterprises accounting for 81% of the market capitalization [4][5] - The company has successfully attracted significant interest from companies in other Asian countries, expanding its recognition to 20 overseas markets for secondary listings [4][5] Group 2: Future Outlook and Strategic Initiatives - HKEX is focused on enhancing its role in connecting emerging capital and innovative enterprises in China, Asia, and globally, while also promoting the internationalization of the Renminbi [8][9] - The company plans to continue its efforts in sustainable development by improving ESG standards and providing guidance to market participants [7][8] - HKEX aims to leverage its financing platform to connect green innovation companies with capital, ensuring a sustainable future for the financial ecosystem [7][8]

Group 1 - The core viewpoint emphasizes the need to develop a multi-tiered market system in China's capital market, leveraging the strengths of various exchanges for complementary and differentiated growth [1] - The CEO of Hong Kong Exchanges and Clearing (HKEX) highlighted the importance of the "people, goods, and venues" framework in capital market development, focusing on collaboration with industry peers [1] - Currently, over 100 companies are waiting to list on HKEX, showcasing China's strong capabilities in resource allocation for listings, which has garnered admiration from international peers [1] Group 2 - HKEX's CEO explained that A-share companies are keen on listing in Hong Kong to build overseas business platforms and access more financing channels, leading to an "A+H" linkage effect that boosts trading volumes in both markets [2] - There is significant potential for foreign institutional investors to increase their asset allocation in China, particularly in the context of shifting perceptions regarding the safety of U.S. assets [2] - HKEX is preparing to launch RMB-denominated government bond futures, which is seen as a crucial step in enhancing the market ecosystem and attracting global capital [2] Group 3 - The infrastructure and mechanism construction of the capital market are deemed essential, with increasing demands for trading experience, such as providing all-day trading services [3] - HKEX plans to advance the connectivity mechanism by incorporating RMB counters into the Hong Kong Stock Connect, facilitating mainland investors' participation without currency conversion [3] - Continuous investment in technology platform development is highlighted as a critical aspect for exchanges to enhance their systems [3]

Group 1 - The core viewpoint emphasizes the need for a multi-tiered market system in China's capital market to ensure stability and long-term growth, allowing exchanges to develop distinct advantages and complement each other [1] - The current market volatility and changing external environment necessitate resilience, with a focus on the three elements of "people, goods, and venues" applicable to exchanges [1] - The number of companies waiting to list on the Hong Kong Stock Exchange indicates strong listing resource availability, highlighting the need for innovative reforms to support the real economy [1] Group 2 - The investment side reveals that foreign capital can participate in Chinese stocks and bonds at low valuations, presenting significant upside potential, especially as international investors consider reallocating their portfolios [1] - The product system needs to be enhanced to include equities, bonds, and commodities, with a focus on developing risk management tools like the upcoming RMB government bond futures [1][2] - The infrastructure of the capital market must be solidified, with improvements in investor experience through initiatives like the RMB counter in the southbound trading market and ongoing upgrades to technical platforms [2]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is actively expanding its investor base, highlighting the increasing trend of A-share companies listing in H-shares and H-share companies returning to A-shares, driven by the growing recognition and demand from mainland investors for direct investment opportunities [1] Group 1 - HKEX CEO Charles Li emphasizes the need for A-share companies to establish overseas business platforms to expand their international operations and access more financing channels [1] - There is a noticeable trend of H-share companies returning to A-share listings, as mainland investors are more familiar with these companies and eager for direct investment opportunities [1] - The recent performance of A+H share stocks shows a significant positive correlation, indicating a complementary development and competitive positioning between domestic and international exchanges [1]

Core Viewpoint - The CEO of Hong Kong Stock Exchange, Charles Li, highlighted the low proportion of foreign investment in Chinese equity and bond assets, indicating significant growth potential in the future [1] Group 1: Foreign Investment Trends - Foreign investors are beginning to rebalance their portfolios due to the impact on the safety attributes of US dollar assets, leading to increased interest in RMB-denominated assets [1] - The current environment is seen as an opportune moment for foreign investment in Chinese assets, with both Hong Kong and A-share markets being targeted for attracting foreign investment funds [1] Group 2: Strategic Initiatives - Domestic exchanges are set to collaborate actively to attract foreign investment, regardless of the investment channels used, emphasizing the importance of both Hong Kong and A-share markets in this strategy [1]

Group 1: Core Perspectives - The role of exchanges is evolving from merely facilitating capital flow to becoming "innovation ecosystem builders" [1][2] - The global capital market is entering a new era where trust, resilience, and inclusivity are becoming core elements of exchange development [2] - Cross-border cooperation is essential for integrating global capital supply and industrial demand, particularly in capital-intensive sectors like semiconductors and renewable energy [4][6] Group 2: Technological Integration - The Singapore Exchange (SGX) is integrating AI tools into regulatory monitoring and analysis systems to enhance market anomaly detection and forecasting accuracy [2] - Cloud computing solutions are being deployed to expand infrastructure and support the development of next-generation trading and clearing systems [2] Group 3: Cross-Border Collaboration - The collaboration between SGX and Chinese exchanges, such as the ETF mutual access project, exemplifies successful cross-border capital cooperation [4] - This partnership allows global investors to access China's innovative industries while enabling Chinese capital to participate in global emerging sectors [4][5] Group 4: Market Dynamics - SGX's market is characterized by a significant proportion of listed companies from outside Singapore, with nearly half from Greater China, establishing a solid foundation for deeper cooperation [6] - The exchange aims to develop more ETF mutual access products and collaborate on indices to provide diverse investment options for international investors [7] Group 5: Future Outlook - The deep cooperation between exchanges is strategically valuable for building a more comprehensive ecosystem that facilitates the free flow of cross-border capital [8] - Strengthening partnerships with international markets like Singapore is crucial for China to overcome technological and capital bottlenecks and participate in global financial governance [8]

Core Viewpoint - The Hong Kong stock market showed strong performance in May, with active trading and positive growth expectations for the Hong Kong Stock Exchange's (HKEX) earnings [1][2] Market Performance - The Hang Seng Index and Hang Seng Tech Index increased by 16.1% and 15.7% respectively compared to the end of 2024 [1] - The monthly average daily turnover (ADT) for HKEX was HKD 210.3 billion, down 23.4% month-on-month but up 50.4% year-on-year [1] - The monthly ADT for the Shanghai-Shenzhen Stock Connect was HKD 906.13 billion, down 6.9% month-on-month but up 22.4% year-on-year [1] - The monthly ADT for the Hong Kong Stock Connect was HKD 147.42 billion, down 22.9% month-on-month but up 50.1% year-on-year [1] Derivatives and Commodity Markets - In the derivatives market, both futures and options trading volumes decreased month-on-month and year-on-year [1] - The average daily volume (ADV) for futures was 586,000 contracts, down 30.3% month-on-month and 14.6% year-on-year [1] - The ADV for options was 805,000 contracts, down 19.8% month-on-month and 23.7% year-on-year [1] - The London Metal Exchange (LME) saw a decrease in trading volume, with a daily average of 707,000 contracts, down 19.7% month-on-month and 8.5% year-on-year [1] IPO Market - The Hong Kong IPO market experienced significant growth, with 10 new listings in May totaling HKD 55.8 billion, representing increases of 1830.4% month-on-month and 3150.6% year-on-year [1] Investment Income - Investment income rates for HKEX showed a decline month-on-month and year-on-year as of the end of May [1] - The 6-month HIBOR was 2.16%, down 1.86 percentage points month-on-month and down 2.66 percentage points year-on-year [1] - The 1-month HIBOR was 0.59%, down 3.37 percentage points month-on-month and down 3.89 percentage points year-on-year [1] - The overnight HIBOR was 0.03%, down 4.47 percentage points month-on-month and down 4.44 percentage points year-on-year [1] - The US overnight bank funding rate was 4.33%, unchanged month-on-month [1] Macroeconomic Environment - Domestic economic conditions showed signs of recovery, with the manufacturing PMI at 49.50%, up 0.50 percentage points month-on-month [1] - New orders and new export orders indices were at 49.8% and 47.5%, respectively, with increases of 0.60 percentage points and 2.80 percentage points month-on-month [1] - The manufacturing production index was at 50.7%, up 0.90 percentage points month-on-month [1] - Internationally, the Federal Reserve maintained its interest rate at 4.25%-4.50%, with expectations for rate cuts being postponed [1][2] Investment Outlook - As of the end of May, the company's PE ratio was 35.45x, positioned at the 44th percentile historically since 2016, indicating potential value for investment [2] - The company is expected to achieve revenues of HKD 29.8 billion, HKD 31.0 billion, and HKD 32.5 billion for 2025-2027, with net profits of HKD 17.9 billion, HKD 18.6 billion, and HKD 19.6 billion respectively [2] - Corresponding PE valuations are projected to be 29.2x, 28.0x, and 26.6x for the same period, suggesting a "buy" rating [2]

Core Viewpoint - The Hong Kong IPO market is showing signs of recovery as more Chinese companies consider returning to the Hong Kong stock exchange amid rising geopolitical tensions between China and the United States [1] Group 1 - The CEO of Hong Kong Exchanges and Clearing, Charles Li, expressed that the exchange aims to attract high-quality companies for listing [1] - The exchange is willing to provide flexible solutions to help companies overcome specific challenges they may face [1]