Core Insights - CBOE Global reported a revenue of $605.5 million for the quarter ended September 2025, reflecting a year-over-year increase of 13.8% and surpassing the Zacks Consensus Estimate by 2.14% [1] - The earnings per share (EPS) for the quarter was $2.67, up from $2.22 in the same quarter last year, resulting in an EPS surprise of 5.53% over the consensus estimate of $2.53 [1] Financial Performance Metrics - Average Daily Volume for Index options was 4.86 million, slightly above the analyst estimate of 4.8 million [4] - Average Revenue Per Contract for Futures was $1.75, slightly below the estimate of $1.76 [4] - Average Daily Volume for Options was 18.78 million, exceeding the estimate of 18.12 million [4] - Average Daily Volume for Multi-listed options was 13.91 million, above the estimate of 13.32 million [4] - Total revenues from Access and capacity fees were $103.9 million, surpassing the estimate of $101.69 million [4] - Market data fees totaled $83.7 million, exceeding the average estimate of $81.17 million [4] - Net transaction and clearing fees generated $446.6 million, representing a 14.3% year-over-year increase and exceeding the estimate of $435.53 million [4] - Futures transaction and clearing fees were $23.8 million, below the estimate of $29.67 million, reflecting a year-over-year decline of 24.9% [4] - Global FX transaction and clearing fees were $19.6 million, above the estimate of $18.8 million, marking a year-over-year increase of 12.6% [4] - Total regulatory fees were $11.8 million, significantly below the estimate of $115.14 million [4] - Total transaction and clearing fees reached $919.9 million, exceeding the estimate of $785.52 million [4] - Net transaction and clearing fees for Global FX were $19.1 million, slightly above the estimate of $18.53 million [4] Stock Performance - CBOE shares have returned -1.9% over the past month, while the Zacks S&P 500 composite has increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Cboe Global Markets is seeking to extend options trading hours, moving towards "overnight trading" in the U.S. market [1] Group 1: Proposed Changes - The company has proposed to add trading hours outside of the regular trading session, specifically from 7:30 AM to 9:25 AM and from 4:00 PM to 4:15 PM [1] - This extension aims to align with overseas demand and is part of a broader trend among U.S. exchanges to lengthen trading hours [1] Group 2: Implementation Details - The proposed changes will only apply to certain categories of stock options, depending on trading volume, market capitalization, and trading activity [1] - The expansion will be limited to specific contracts and will be tested in a small-scale pilot before broader implementation [1]

Core Viewpoint - CITIC Securities maintains a "Buy" rating for Hong Kong Exchanges and Clearing (HKEX) with a target price of 543 HKD, supported by expectations of liquidity from the Federal Reserve's interest rate cuts, continuous inflow of southbound funds, and valuation advantages [1] Group 1: Market Conditions - The Hong Kong stock market is expected to maintain high activity levels in Q4 due to three main factors: the Federal Reserve's shift in monetary policy providing liquidity support, continuous inflow of southbound funds, and significant valuation advantages [2][3] - Since April, HKEX has shown a recovery in overall valuation after a significant decline, driven by high average daily trading volume and sustained buying from southbound funds [1] Group 2: Financial Projections - For Q3 2025, the company is projected to achieve revenue and other income of 79.11 billion HKD, a year-on-year increase of 47.26%, and a net profit attributable to shareholders of 48.24 billion HKD, up 53.38% year-on-year [2] - Revenue forecasts for 2025, 2026, and 2027 are expected to grow by 27.94%, 5.93%, and 1.17% respectively, reaching 286.25 billion HKD, 303.21 billion HKD, and 306.75 billion HKD [2] Group 3: Valuation and Investment Appeal - As of October 10, the PE (TTM) ratio for HKEX is 36.49x, which is at the 72.15%, 71.85%, and 47.43% percentiles for the past 1, 3, and 5 years respectively, indicating a potential for further valuation recovery [1] - The Hang Seng Index's PE-TTM is approximately 11.95x, placing it at the 64th percentile over the past 20 years, highlighting the relative valuation advantage of Hong Kong stocks compared to the CSI 300's 14.24x [3]

Group 1 - The Intercontinental Exchange (ICE) saw a pre-market increase of over 3% on October 7 [1]

Group 1 - The core viewpoint of the article is that Miami International Holdings (MIAX) has successfully launched its IPO on the New York Stock Exchange, marking one of the largest listings for an exchange operator in U.S. history [1] - MIAX's IPO raised $345 million by selling 15 million shares at a final pricing of $23, which was above the initial price range of $19 to $21 [1] - The company has been preparing for this IPO since it filed a confidential application in 2022, and it is notable that few exchange operators have gone public in the U.S. since the early 2000s [1] Group 2 - MIAX operates nine exchanges covering multiple asset classes, with a significant portion of its revenue derived from options trading [1] - As of the first half of 2025, MIAX is projected to hold a 16% market share in the U.S. options market, ranking just behind NYSE, Nasdaq, and Cboe [1] - The company has expressed interest in expanding into cryptocurrency futures if opportunities arise, indicating a willingness to collaborate with partners in the crypto space [2]

Group 1 - The core argument emphasizes the current optimal timing for native cryptocurrency exchanges to go public, highlighting the combination of user education and the lagging traditional financial institutions [5] - User education has significantly improved, creating a multiplier effect that benefits the market [5] - Traditional financial institutions, including major internet brokers and traditional bank trading desks, have not yet caught up, presenting an opportunity for growth [5] Group 2 - The discussion reflects a contradiction in the industry, where there is a push for decentralization and regulatory compliance simultaneously [5] - The essence of blockchain as an anonymous incentive system is acknowledged, yet the importance of regulatory frameworks and KYC (Know Your Customer) compliance is also emphasized [5]

Group 1 - The Hong Kong stock market has shown strong performance this year, with the Hang Seng Index surpassing 25,000 points on July 21, marking a nearly three-year high, driven by sectors such as technology and new consumption [1] - Two main factors are driving the current rally in Hong Kong stocks: the AI boom attracting foreign capital back to the market, particularly in e-commerce and gaming sectors, and the active secondary listings of mainland companies benefiting Hong Kong's banks and exchanges [1] - The presence of leading companies provides foreign investors with convenient investment channels, with some H-shares trading at prices higher than their A-share counterparts, enhancing overall trading volume and activity in the Hong Kong market [1] Group 2 - Looking ahead, the potential for significant further gains in the Hang Seng Index is limited, although individual stocks may still present opportunities [2] - The ability of AI advancements to translate into profit growth for cloud computing, e-commerce, and gaming companies will need to be validated after the second quarter earnings reports [2] - Some companies involved in the food delivery market have seen their 2025 profit forecasts downgraded, but if competition in this area ceases, profitability could recover, positively impacting the overall performance of Hong Kong stocks [2] - Certain individual stock prices have been driven up significantly, suggesting that investors should consider taking profits to lock in gains [2]

Core Insights - The report highlights the rebound in global stock markets during Q2, with significant gains in US and German markets, raising concerns about potential pullbacks in Q3 due to high valuations and risk sentiment [2][8] - The report emphasizes the potential for a revaluation of the Hong Kong Stock Exchange (HKEX), with a projected PE range of 30 to nearly 70 times, driven by fundamentals and liquidity [10][12] - The analysis of the computer industry indicates a low fund allocation, suggesting opportunities for increasing investments in Hong Kong IT and financial sectors [12][14] Market Performance Summary - The Shanghai Composite Index closed at 3606 points, with a 1-day increase of 0.65% and a 5-day increase of 5.41% [1] - The Shenzhen Composite Index closed at 2203 points, with a 1-day increase of 1.19% and a 5-day increase of 8.89% [1] - Large-cap indices showed a 1-month increase of 6.22%, while small-cap indices outperformed with a 1-month increase of 9.14% [1] Industry Performance Summary - The energy metals sector experienced a significant 1-day increase of 7.55% and a 1-month increase of 19.66% [1] - The small metals sector saw a 1-month increase of 30.16%, indicating strong performance [1] - Conversely, the precious metals sector faced a 1-day decline of 2.19% and a 1-month increase of only 2.28% [1] Investment Opportunities - The report suggests that the HKEX is positioned for growth, with a projected net profit of HKD 165 billion, 179 billion, and 188 billion for 2025-2027, reflecting year-on-year growth rates of 26%, 9%, and 5% respectively [10][12] - The computer industry is highlighted for its potential growth, with AI remaining a key focus area, and a notable shift towards high-end products in the domestic market [12][14] - The photovoltaic industry is entering a new phase with policies aimed at reducing competition and improving pricing structures, which could lead to increased profitability for key players [14][16]

Group 1 - The Hong Kong stock market indices collectively rose during the week of June 27, with the Hang Seng Index increasing by 3.2% to close at 24,284.15 points, the Hang Seng Tech Index rising by 4.06% to 5,341.43 points, and the National Enterprises Index up by 2.76% to 8,762.47 points [1] - The IPO market in Hong Kong remained active, with several companies successfully listing or initiating the offering process, including the smart control component manufacturer Sanhua Intelligent Control, which officially listed on June 23 [1] - On June 26, the Hong Kong Stock Exchange witnessed a lively scene with three consumer sector companies—Chow Sang Sang, Saint Bella, and Yingtong Holdings—listing on the same day, while two other companies, Boke Vision and FWD Group, also began their offering process during the week [1] Group 2 - According to Deloitte's recent report, Hong Kong has seen 40 new listings this year, raising HKD 102.1 billion, a significant increase compared to 30 listings and HKD 13.2 billion in the same period last year, marking a 33% rise in the number of new listings and a 673% increase in total funds raised [2] - Ernst & Young's report anticipates that the Hong Kong IPO market will continue to recover in the second half of the year, with a conservative estimate of total fundraising reaching approximately HKD 160 billion for the year [2]

Quantitative Models and Construction Methods - **Model Name**: Hang Seng Stock Connect Non-Bank Financial Index (931024.CSI) **Model Construction Idea**: The index aims to reflect the overall performance of non-bank financial companies listed in Hong Kong that are part of the Stock Connect program[31][32]. **Model Construction Process**: 1. Calculate the median daily turnover rate for each Stock Connect security over the past month as the monthly turnover rate. Exclude securities with an average monthly turnover rate below 0.1% over the past 12 months or 3 months, unless their average daily trading volume exceeds HKD 50 million[32]. 2. Select securities from industries such as insurance, capital markets, mortgage credit institutions, other comprehensive financial services, special financial services, and consumer credit as candidate samples[32]. 3. Rank the candidate samples by average daily market capitalization over the past year and select the top 50 securities. If fewer than 50 securities meet the criteria, include all eligible securities[32]. 4. Apply weighting factors between 0 and 1 to ensure no single stock exceeds 15% weight and the top five stocks collectively do not exceed 60% weight[33]. **Model Evaluation**: The index demonstrates strong representation of large-cap financial stocks, particularly in the insurance sector, and provides a focused investment tool for non-bank financial themes in Hong Kong[34][35][36]. Model Backtesting Results - **Hang Seng Stock Connect Non-Bank Financial Index**: - **Total Return**: 53.30%[48] - **Annualized Volatility**: 33.26%[48] - **Maximum Drawdown**: 20.29%[48] - **Sharpe Ratio**: 1.56[48] Quantitative Factors and Construction Methods - **Factor Name**: Market Capitalization Weighting **Factor Construction Idea**: Emphasize large-cap stocks to ensure stability and representativeness of the index[36]. **Factor Construction Process**: 1. Divide constituent stocks into market capitalization tiers: above HKD 500 billion, between HKD 200 billion and HKD 500 billion, and below HKD 500 billion[36]. 2. Assign weights based on market capitalization, with stocks above HKD 500 billion collectively accounting for 46.63% of the index weight, stocks between HKD 200 billion and HKD 500 billion accounting for 28.49%, and stocks below HKD 500 billion accounting for 8.31%[36]. **Factor Evaluation**: The factor ensures the index is dominated by stable, large-cap stocks, reducing volatility and enhancing reliability[36][40]. - **Factor Name**: Sector Allocation **Factor Construction Idea**: Focus on insurance and capital market sectors to capture the core of non-bank financial themes[34][35]. **Factor Construction Process**: 1. Allocate weights to sectors based on their representation in the index: insurance accounts for 65.11%, securities companies for 11.08%, and other capital market entities for 20.95%[35]. **Factor Evaluation**: The factor provides a balanced yet focused exposure to key non-bank financial sectors, aligning with the index's thematic goals[34][35]. Factor Backtesting Results - **Market Capitalization Weighting Factor**: - **Weight Distribution**: - Above HKD 500 billion: 46.63%[36] - HKD 200 billion–500 billion: 28.49%[36] - Below HKD 500 billion: 8.31%[36] - **Sector Allocation Factor**: - **Weight Distribution**: - Insurance: 65.11%[35] - Securities Companies: 11.08%[35] - Other Capital Market Entities: 20.95%[35] Additional Observations - **Index Fundamental Characteristics**: - **ROE (2024)**: 11.69%[43] - **ROE (2025 Q1)**: 2.94%[43] - **Dividend Yield (Last 12 Months)**: 4.01%[43] - **Valuation Metrics**: - **PE_TTM**: 8.52 (22.76% below historical average)[44] - **Index Concentration**: - **Top 10 Constituents Weight**: 82.79%[41] - **Largest Constituent (Hong Kong Exchange)**: 17.69% weight[41]