Market Overview - The Hang Seng Index closed at 24,951.88 points, up 0.38% for the day but down 2.65% year-to-date[4] - The Tech Index decreased by 13.38% year-to-date, while the Financial Index fell by 1.39%[4] - The trading volume increased by 0.5% to HKD 263.08 billion[5] Economic Insights - The ongoing Middle East conflict has raised concerns, with over 50% probability of escalation impacting global economic stability[3] - Consumer stocks showed positive performance, with Haidilao up 4.9% and Mengniu Dairy up 5.3%[5] Company Performance - China Resources Mixc Lifestyle (1209.HK) reported a net profit of RMB 3.969 billion for the year ending December 2025, a 10.31% increase year-on-year[6] - China Resources Land (1109.HK) reported a net profit of RMB 25.418 billion, a decrease of 0.45% year-on-year, with a total dividend of RMB 1.166 per share, down 11.6%[6] Commodity Prices - New York crude oil prices rose by 5.46% to USD 99.64 per barrel, with a year-to-date increase of 79.19%[4] - Gold prices increased by 2.66% to USD 4,492.50 per ounce, with a year-to-date rise of 2.37%[4] Technical Analysis - The Hang Seng Index is currently testing the 25,000-25,200 point range, with a potential drop to 24,000 points if it fails to hold above this level[10]

Financial Data and Key Metrics Changes - HKEX reported record revenue and profit for 2025, with revenue and other income reaching HKD 29.2 billion, a 30% increase from 2024, and profit after tax at HKD 17.8 billion, up 36% year-on-year [6][7] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a total dividend of HKD 12.52 per share for 2025, a 35% increase from 2024 [7] - Average daily trading (ADT) reached HKD 249.8 billion, a 90% increase year-on-year, with both Northbound and Southbound Stock Connect achieving all-time highs [7][9] Business Line Data and Key Metrics Changes - Trading volumes in the cash and derivatives markets reached record highs, with derivatives market volumes increasing by 7% and commodities market volumes by 8% compared to 2024 [7][9] - The introduction of new IPO price discovery rules and support for specialist technology issuers contributed to increased market activity [3][4] Market Data and Key Metrics Changes - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] - The average daily trading volume of exchange-traded products nearly doubled from the previous year [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while expanding into fixed income, currency, and commodities [27][18] - The company plans to strengthen connectivity with other Asian markets and enhance its product offerings to meet the growing demand for China assets [19][18] - Strategic investments, such as the acquisition of a 20% stake in CMU OmniClear, are intended to bolster Hong Kong's position as a global hub for bond fundraising and risk management [4][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum in 2026, supported by a robust IPO pipeline and ongoing market reforms [14][27] - The macroeconomic landscape presents both challenges and opportunities, with a focus on capital diversification and the evolving needs of global investors [16][26] Other Important Information - HKEX's effective tax rate increased to 15.7% in 2025 due to new tax provisions [8] - The company has made significant investments in technology and market reforms to enhance liquidity and attract high-quality issuers [24][25] Q&A Session Summary Question: Potential expansion of connectivity with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [32][34] Question: Cost discipline amid increasing initiatives - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in future growth areas [35][36] Question: Revenue contribution from CMU OmniClear - Management indicated that the investment in CMU OmniClear is a strategic step towards building a comprehensive fixed income ecosystem, with potential for long-term returns [42][44] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for completed IPOs [55][56] Question: Timeline for Southbound RMB counter - Management confirmed ongoing progress on the Southbound RMB counter, with plans to accelerate implementation [57] Question: Cost growth expectations - Management projected a moderate growth in operating expenses, emphasizing stringent cost control measures while investing in future initiatives [66][68] Question: Importance of T-bond futures - Management acknowledged strong market demand for T-bond futures and confirmed ongoing discussions with partners to advance this initiative [62][64]

Financial Data and Key Metrics Changes - HKEX reported record revenue and profit for 2025, with revenue and other income reaching HKD 29.2 billion, a 30% increase from 2024, and profit after tax at HKD 17.8 billion, up 36% year-on-year [6][8] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a second interim dividend of HKD 6.52 per share, totaling HKD 12.52 for the year, a 35% increase from 2024 [7] Business Line Data and Key Metrics Changes - Trading volumes in Hong Kong cash and derivatives markets reached record highs, with average daily turnover (ADT) of HKD 249.8 billion, a 90% increase year-on-year [8] - The derivatives market saw a 7% increase in trading volumes, while the commodities market increased by 8% compared to 2024 [8] - The group's effective tax rate rose to 15.7% in 2025 from 11.4% in 2024 due to new tax provisions [9] Market Data and Key Metrics Changes - Northbound and Southbound Stock Connect recorded all-time highs, indicating strong cross-border trading activity [8] - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while developing fixed income, currency, and commodities markets [25] - The company is expanding its connectivity with markets in the Middle East and Southeast Asia, enhancing its regional liquidity pool [20] - Strategic initiatives include the introduction of new IPO price discovery rules and the launch of the HKEX Tech 100 Index, focusing on Hong Kong's technology sector [3][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum in 2026, supported by a robust IPO pipeline and ongoing market reforms [14][25] - The macro landscape shows persistent uncertainty, but there are significant opportunities for capital diversification into Asia [16][17] - The company is well-positioned to capture emerging trends in technology and innovation sectors, particularly from mainland China [17][18] Other Important Information - HKEX's investment in CMU OmniClear is part of its strategy to strengthen Hong Kong's position as a global hub for bond fundraising and risk management [4][21] - The company is committed to future-proofing its technology and operations to meet growing demand for China assets [24] Q&A Session Summary Question: Potential expansion of connectivities with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [30][31] Question: Cost growth in line with revenue - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in technology and personnel to support future growth [32] Question: Revenue contribution from CMU OmniClear - Management indicated that while the initial revenue contribution from CMU would be modest, it is a strategic investment aimed at building a comprehensive fixed income ecosystem [42][46] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for recent IPOs [53] Question: Timeline for Southbound RMB counter - Management confirmed that the implementation of the Southbound RMB counter is progressing, with updates to be shared as they become available [54] Question: Multi-asset business monetization opportunities - Management acknowledged the significant potential in the fixed income market and the need for a holistic approach to developing a multi-asset ecosystem [78][79]

2025 Annual Results Analyst Presentation Bonnie Y Chan Chief Executive Officer, HKEX Group Herbert Hui Group Chief Financial Officer, HKEX Group 26 February 2026 Disclaimer The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, inducement, invitation or recommendation to subscribe for, buy or sell any securities or other products or to provide any investment advice or service of any kind. This document is solely intended for dist ...

Group 1: Hang Seng Index (HSI) - The Hang Seng Index (HSI) closed at 27,183 points, with a slight increase of approximately 0.5% [1] - Market sentiment is divided, with bullish investors expecting a rebound to 27,300 points, while bearish investors plan to short at higher levels due to declining trading volume [1] - The overall trading volume has shown a significant decrease compared to previous trading days, indicating a lack of confidence in the market [1] Group 2: Hong Kong Stock Exchange (HKEX) - HKEX shares experienced a slight decline, with trading volume continuing to shrink, raising concerns about whether the stock has reached a bottom [7][8] - The first short-term support level for HKEX is at 409 HKD, and if this level is breached, the stock may drop to 393 HKD [7] - Investors are advised to consider bull certificates with a redemption price below 393 HKD for better safety [7] Group 3: Sunny Optical Technology (02382.HK) - Sunny Optical's stock closed at 59 HKD, showing a slight increase, but has been in a prolonged low-level consolidation phase [12] - The first short-term support level is at 57.4 HKD, and if breached, the stock may drop to 53.9 HKD [12] - Some investors are adopting a cautious approach by hedging with put options, despite strong buy signals from technical indicators [13] Group 4: Yancoal Australia Ltd (01171.HK) - Yancoal's stock has been performing well, reaching a high of 12.91 HKD, close to the key resistance level of 13 HKD [19] - If the stock successfully breaks through 13 HKD, it may further rise to 14.1 HKD, attracting interest in call options with a strike price of 14 HKD [19] - Investors are advised to choose options based on their expectations of the stock's short-term movements, balancing between high leverage and risk [20] Group 5: Kuaishou Technology (01024.HK) - Kuaishou's stock has been in a consolidation phase, with investors optimistic about a potential rise to 80 HKD after the Spring Festival [27] - The first key resistance level is at 76.9 HKD, and if surpassed, the stock may reach 81.8 HKD [27] - Investors are encouraged to consider options with strike prices closer to the current stock price for better competitiveness [27] Group 6: Alibaba Group (09988.HK) - Alibaba's stock rose by approximately 1.65%, but trading volume has decreased, indicating a cautious market sentiment [32] - Investors are optimistic about the stock reaching the 165-170 HKD range this week, supported by the recent surge in demand for its services [32] - The short-term resistance level is around 168 HKD, and if broken, the stock could rise to 173.5 HKD [32]

Core Viewpoint - The Hong Kong stock market showed strong performance today, with Hong Kong Exchanges and Clearing Limited (00388) rising by 2.80% to a price of 419 HKD, indicating a potential upward trend in the medium to long term [1]. Technical Analysis - The current price of Hong Kong Exchanges is slightly below the 10-day moving average (MA10) of 425.34 HKD and the 30-day moving average (MA30) of 425.19 HKD, but above the 60-day moving average (MA60) of 417.5 HKD, suggesting short-term pressure but a positive medium to long-term outlook [1]. - Support levels are identified at 410 HKD (Support 1) and 395 HKD (Support 2), while resistance levels are at 429 HKD (Resistance 1) and 443 HKD (Resistance 2). The current price is above the support levels, with only a 10 HKD gap to the first resistance level, indicating a high likelihood of a technical breakout [1]. - The Relative Strength Index (RSI) is at 46, indicating a neutral position, while stochastic indicators signal a buy, suggesting strengthening momentum. Other indicators like the Williams and CCI remain neutral, reflecting balanced market sentiment [3]. Product Review - On January 30, the stock of Hong Kong Exchanges experienced a decline over the following two days, with a cumulative drop of -2.36%. Bear certificates from Societe Generale (65230) and UBS (56683) recorded increases of 34% and 32%, respectively, while put options also benefited from the stock's decline, with Bank of China (24260) and HSBC (24217) rising by 25% and 17% [4]. Selected Products - In the call options category, Bank of China (23431) and HSBC (23458) both offer a leverage of 10.6 times, with exercise prices set at 464.19 HKD, providing low volatility risk suitable for investors expecting a breakout above resistance [6]. - In the put options category, Barclays (21691) offers a leverage of 10.4 times with an exercise price of 389.08 HKD, balancing risk and return effectively for investors anticipating a price drop to test support levels. Bank of China (24260) leads with a leverage of 9.6 times, suitable for cost-sensitive investors [7]. - For bull and bear certificates, UBS (64102) has a leverage of 13.8 times with a recovery price of 386 HKD, while JPMorgan (57624) leads with a leverage of 15.1 times, appealing to investors expecting a rebound from support levels. Bear certificates from Societe Generale (60816) and UBS (60541) offer lower premiums and higher leverage, suitable for those expecting resistance at higher price levels [7][8]. Overall Technical Outlook - The technical analysis indicates a "support below and space above" scenario for Hong Kong Exchanges. The buy signal from stochastic indicators, combined with the price holding above the MA60, suggests a potential challenge to the 429 HKD resistance level in the near term. The ability to effectively break through short-term moving average resistance will be a key signal for confirming the upward trend [8].

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is experiencing a significant decline, with its stock price dropping over 3% to 430.2 HKD, indicating a bearish market sentiment and potential selling pressure from large investors [1] Technical Analysis and Key Levels - The stock has breached critical moving averages, including the 10-day moving average at approximately 430.16 HKD and the 30-day moving average at around 422.61 HKD, finding temporary support above the 60-day moving average at about 418.91 HKD [1] - Key support levels to watch are at 419 HKD and 413 HKD, while resistance levels for a potential rebound are at 445 HKD and 452 HKD [1] - Technical indicators suggest a "buy" signal, but with a low strength of 7, and a 5-day volatility of 5.7%, indicating significant market fluctuations [1] Derivative Instruments and Investment Strategies - In the current volatile market, derivative instruments can amplify returns but also increase risks. For bullish investors, options like the call warrants (e.g., 22028 with a strike price of 499.99 HKD and a leverage of 14.4 times) are available [2] - For bearish investors, put warrants (e.g., 24217 and 24260, both with a strike price of 388.68 HKD and leverage over 10 times) can be considered [2] - Bullish certificates, such as UBS's bull certificate (64102 with a redemption price of 386 HKD and a leverage of 9.4 times), are also options, but caution is advised due to the proximity of current prices to redemption levels [3] Market Insights and Product Performance - Recent performance of related products shows significant gains, with some call warrants and bull certificates rising between 40% to 64% when the underlying stock increased nearly 4% [4] - This highlights the explosive potential of derivative instruments when the market direction is correctly anticipated, but also emphasizes the risk of substantial losses in the opposite direction [4]

Core Insights - Hong Kong's financial sector is undergoing a digital transformation, enhancing its role as a global finance hub and a "super connector" between international investors and mainland China [1][8] - The city is leveraging regulatory agility and technological advancements to facilitate capital flows, with programs like Stock Connect contributing to 25% of daily trading volume [2][3] Group 1: Digital Transformation and Market Position - The appointment of Bonnie Y Chan as CEO of HKEX in March 2024 marks a strategic leadership shift aimed at enhancing Hong Kong's dual function in capital flow facilitation [2] - CATL's IPO is highlighted as the world's largest this year, attracting global investors and showcasing Hong Kong's vibrant ecosystem for high-potential sectors [3] - Hong Kong is fostering innovation through tailored listing rules for pre-revenue R&D firms, particularly in biotechnology and green tech [3] Group 2: Regional Collaboration and Market Representation - Despite representing over 50% of the world's population, Asia remains underrepresented in global capital markets, prompting calls for collaboration among Asian markets to counter U.S. dominance [4] - Chan emphasizes the need for alternative investment avenues to enhance Asia's relevance on the global stage, with regulation playing a crucial role in this evolution [4] Group 3: Regulatory Framework and Digital Assets - Chan views regulators as enablers, crafting frameworks that balance development and protection, particularly in the context of digital assets like stablecoins [5] - Stablecoins are legislated under the Hong Kong Monetary Authority, primarily viewed as a medium of exchange, which could enhance stock settlements on HKEX [5][6] Group 4: Future Outlook and Market Resilience - Hong Kong's financial sector has shown resilience, with average daily turnover increasing to over 250 billion HKD from low trading volumes in late 2023 [6] - The sector's adaptability is underscored by ongoing monitoring and integration of digital assets, with a focus on enhancing efficiency in stock settlements [6][8] - Predictions indicate deeper global research into Asian innovations, potentially reshaping the financial ecosystem as Chinese companies increasingly derive revenue internationally [7][8]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is currently experiencing a technical analysis phase with support levels at 415 HKD and 405 HKD, and resistance levels at 438 HKD and 456 HKD, indicating a potential upward movement probability of 52% [1][3]. Technical Analysis - The recent performance of HKEX shows a relatively strong trend compared to the Hang Seng Index, with the stock price stabilizing around 430 HKD, above the upper band of the Bollinger Bands [3]. - The short-term resistance level is identified at approximately 438 HKD, and if this level is breached, there is potential for the stock to rise to 440 HKD [3]. - Current technical signals indicate a predominance of "sell" signals, with 11 sell signals compared to 6 buy signals, suggesting a cautious outlook for short-term movements [3]. Derivative Products Performance - Following a phase of price increase on January 5, 2026, related warrants (窩輪) showed significant reactions, with UBS bull certificates (64102) rising by 27%, Societe Generale bull certificates (57689) by 24%, and Morgan Stanley call warrants (22028) by 23% within two days, highlighting the leverage effect of these products [3][5]. - The key factors influencing the price movements of warrants include the proximity of the exercise price to the underlying stock price and changes in implied volatility, which affects market expectations of future volatility [5][6]. Investment Recommendations - For investors holding HKEX-related warrants, it is advisable to set profit-taking levels, such as placing a stop-loss slightly below recent highs for Societe Generale bull certificates (69254) to avoid profit erosion [6]. - New investors are cautioned against chasing high-priced warrants that have already seen significant increases, such as UBS bull certificates (64102), and are encouraged to consider alternatives like Societe Generale bull certificates (69254) and Morgan Stanley call warrants (22028) due to their lower premium and higher leverage [6]. - For those with a bearish outlook on HKEX's short-term performance, Societe Generale bear certificates (69592) are recommended, as they offer the lowest premium and a high leverage of 19.1, allowing for better capitalizing on potential declines [6]. Selected Products Overview - A summary of selected products related to HKEX includes: - Morgan Stanley call warrant (22028) with a leverage of 13 - UBS call warrant (23422) with a leverage of 9.4 - Societe Generale bear certificate (69592) with a leverage of 19.1 [7].

Market Performance - The Hang Seng Index (HSI) rose by 707 points or 2.8%, closing at 26,338 points on the first trading day of 2026[1] - The Hang Seng Tech Index increased by 220 points or 4%, finishing at 5,736 points[1] - The total market turnover for the day was HKD 140.864 billion[1] US Market Trends - The Dow Jones Industrial Average gained 319 points or 0.7%, closing at 48,382 points[1] - The S&P 500 index rose by 12 points or 0.2%, ending at 6,858 points[1] - The Nasdaq Composite experienced a slight decline, dropping 6 points to close at 23,235 points after a peak increase of 343 points[1] Currency and Commodity Insights - The offshore RMB reached a new high since May 2023, reflecting positive market sentiment[2] - International aluminum prices surpassed USD 3,000 per ton for the first time since 2022, driven by supply concerns and strong demand forecasts[3] - The price of aluminum increased by 0.7% to USD 3,015.5 per ton, marking a 17% rise over the previous year[3] Economic Developments - OPEC+ confirmed the suspension of production increase plans for January to March 2026, maintaining daily oil production targets raised by approximately 2.9 million barrels[2] - The Chinese currency index rose by 0.35 to 97.99, indicating a strengthening of the RMB against a basket of currencies[2]