Core Insights - The International Bank for Settlements has released a survey indicating that Hong Kong remains the fourth largest foreign exchange center globally and the largest offshore renminbi business hub [1] Foreign Exchange Market - The average daily trading volume of foreign exchange in Hong Kong increased by 27.2%, rising from $694.4 billion in April 2022 to $883.1 billion in April 2025 [1] - Foreign exchange swap contracts are the most actively traded instruments, accounting for 64% of the average daily trading volume, which amounts to $563.7 billion [1] Offshore Renminbi Market - Hong Kong maintains its position as the largest offshore renminbi foreign exchange and over-the-counter interest rate derivatives center [1] - The average daily trading volume of renminbi foreign exchange transactions surged by 64.8%, increasing from $191.2 billion in April 2022 to $315.1 billion in April 2025 [1] - The average daily trading volume of renminbi over-the-counter interest rate derivatives also rose by 67.1%, from $14.7 billion in April 2022 to $24.5 billion in April 2025 [1] Over-the-Counter Interest Rate Derivatives - The average daily trading volume of over-the-counter interest rate derivatives in Hong Kong reached $84.1 billion in April 2025 [1] - The most actively traded over-the-counter interest rate derivatives in the Hong Kong market are denominated in US dollars, renminbi, and Australian dollars [1]

Core Insights - The International Bank for Settlements has released a survey indicating that Hong Kong remains the fourth largest foreign exchange center globally and the largest offshore renminbi business hub [1][3] Foreign Exchange Market - Hong Kong's average daily foreign exchange trading volume increased by 27.2% from $694.4 billion in April 2022 to $883.1 billion in April 2025, driven primarily by increases in foreign exchange swaps, spot transactions, and over-the-counter options [3] - Foreign exchange swaps are the most actively traded instruments, accounting for 64% of the average daily trading volume [3] Offshore Renminbi Market - Hong Kong maintains its position as the largest offshore renminbi foreign exchange and over-the-counter interest rate derivatives center, with average daily renminbi foreign exchange trading volume rising by 64.8% from $191.2 billion in April 2022 to $315.1 billion in April 2025 [3] - The average daily trading volume of renminbi over-the-counter interest rate derivatives also increased by 67.1%, from $14.7 billion in April 2022 to $24.5 billion in April 2025 [3] Interest Rate Derivatives - The average daily trading volume of over-the-counter interest rate derivatives in Hong Kong reached $84.1 billion in April 2025, with the most active instruments being denominated in US dollars, renminbi, and Australian dollars [3]

Core Insights - The International Bank for Settlements reported that Hong Kong remains the fourth largest foreign exchange center globally and the largest offshore RMB business hub as of September 30, 2023 [1] Foreign Exchange Market - Hong Kong's average daily foreign exchange trading volume increased by 27.2% from $694.4 billion in April 2022 to $883.1 billion in April 2025 [1] - The growth in foreign exchange trading was primarily driven by increases in foreign exchange swaps (+33.0% or $139.8 billion), spot transactions (+28.7% or $38.5 billion), and OTC options (+165.4% or $31.4 billion) [1] - Foreign exchange swaps are the most actively traded instruments, accounting for 64% ($563.7 billion) of the average daily trading volume [1] Offshore RMB Market - Hong Kong maintains its position as the largest offshore RMB foreign exchange and OTC interest rate derivatives center [1] - The average daily trading volume of RMB foreign exchange increased by 64.8% from $191.2 billion in April 2022 to $315.1 billion in April 2025 [1] - The average daily trading volume of RMB OTC interest rate derivatives also rose by 67.1% from $14.7 billion in April 2022 to $24.5 billion in April 2025 [1] OTC Interest Rate Derivatives - As of April 2025, the average daily trading volume of OTC interest rate derivatives in Hong Kong reached $84.1 billion, with USD, RMB, and AUD being the most actively traded currencies in this market [1]

Core Insights - Bank of China Hong Kong (02388) reported a net operating income of HKD 40.022 billion for the first half of 2025, an increase of 13.26% year-on-year [1] - The profit attributable to shareholders was HKD 22.12 billion, up 10.54% year-on-year, with basic earnings per share at HKD 2.0952 and an interim dividend of HKD 0.58 per share proposed [1] - The net interest income, after accounting for foreign exchange swap contracts, rose to HKD 28.929 billion, a 0.4% increase year-on-year, driven by the growth in average interest-earning assets [2] Financial Performance - The net interest income before impairment provisions was HKD 25.063 billion for the first half of 2025, supported by a 5.7% year-on-year increase in average interest-earning assets, amounting to HKD 2,038.71 billion [2] - The net interest margin, after including foreign exchange swap contracts, was 1.54%, a decrease of 7 basis points year-on-year due to lower market interest rates compared to the previous year [2] - Total assets reached HKD 439.982 billion as of June 30, 2025, reflecting a growth of HKD 20.5414 billion or 4.9% from the end of the previous year [2] Revenue Sources - Net service fee and commission income increased year-on-year, benefiting from improved market conditions, particularly in insurance, securities brokerage, and fund business commissions [1] - Net trading income also rose year-on-year, offsetting the increase in operating expenses, impairment provisions, and net losses from fair value adjustments of investment properties [1] - Cash and balances with banks and other financial institutions decreased by HKD 12.7679 billion or 20.9%, primarily due to a reduction in deposits with the central bank [2]

Core Insights - Bank of China Hong Kong (02388) reported a net operating income of HKD 40.022 billion for the first half of 2025, an increase of 13.26% year-on-year [1] - The profit attributable to shareholders was HKD 22.12 billion, up 10.54% year-on-year, with basic earnings per share at HKD 2.0952 and an interim dividend of HKD 0.58 per share proposed [1] - The net interest income, after accounting for foreign exchange swap contracts, rose to HKD 28.929 billion, a 0.4% year-on-year increase, driven by growth in average interest-earning assets [2] Financial Performance - The net interest income before impairment provisions was HKD 25.063 billion for the first half of 2025, supported by a 5.7% year-on-year increase in average interest-earning assets, amounting to HKD 2,038.71 billion [2] - The net interest margin, after considering foreign exchange swap contracts, was 1.54%, a decrease of 7 basis points year-on-year due to lower market interest rates compared to the previous year [2] - Total assets reached HKD 439.982 billion as of June 30, 2025, reflecting a growth of HKD 20.5414 billion or 4.9% from the end of the previous year [2] Revenue Sources - Net service fee and commission income increased year-on-year, benefiting from improved market conditions, particularly in insurance, securities brokerage, and fund business commissions [1] - Net trading income also rose year-on-year, offsetting the increase in operating expenses, impairment provisions, and net losses from fair value adjustments of investment properties [1] - Cash and balances with banks and other financial institutions decreased by HKD 12.7679 billion or 20.9%, primarily due to a reduction in balances and time deposits with the central bank [2]