Group 1 - The core viewpoint is that China's capital market is expanding its "circle of friends," indicating a growing willingness among global investors to allocate assets in China, which reflects the high-level opening of China's financial market and its contribution to global economic certainty [1][2]. - During the "14th Five-Year Plan" period, 13 foreign-controlled securities and fund futures institutions have been approved to operate in China, with foreign ownership of A-shares reaching 3.4 trillion yuan, and 269 companies listed overseas [1]. - The reforms and opening-up measures in China's capital market are aimed at solidifying the institutional foundation, enhancing both internal stability and external competitiveness, thereby attracting international capital [2]. Group 2 - China's capital market is gathering globally scarce high-quality core assets, providing global investors with stable and growth-oriented investment options, particularly during the ongoing industrial transformation [2]. - The capital market has nurtured a number of companies with core competitiveness in the global industrial chain, spanning traditional sectors like finance and energy, as well as emerging industries such as artificial intelligence and new energy [2]. - The variety and scope of cross-border products have expanded, catering to the diverse allocation needs of global investors, with mechanisms like Shanghai-Hong Kong Stock Connect and Bond Connect enhancing cross-border investment opportunities [3]. Group 3 - The ongoing reforms in China's capital market are expected to further broaden its "circle of friends," leading to more efficient resource allocation, diverse financing channels, and stronger risk resilience [3]. - A larger "circle of friends" will significantly enhance the effectiveness of China's capital market in serving the real economy and improve its international competitiveness and influence [3].

互联互通机制也取得显著进展。从沪港通起步，先后落地深港通、债券通、互换通，产品类型从股票拓 展至债券、交易所买卖基金（ETF）和利率互换等资产类别，与此同时，债券通"南向通"正式开通， QFII与RQFII制度完成并轨，跨境投资渠道不断拓宽。值得一提的是，沪伦通机制已扩展至德国、瑞士 等欧洲主要金融市场，构建起横跨亚欧的资本市场纽带。 [ 据《中国资产管理市场（2024—2025）》报告，过去五年，信托、理财、保险资管等受托资产年均增 速达8%。 ] "十四五"收官之年，中国金融业开放已从"打开大门"升级为"重塑规则"。过去五年，负面清单不断压 缩，外资持股比例限制全面取消，沪深港通、债券通等互联互通机制持续扩容，人民币跨境使用稳步推 进，勾勒出制度型开放的清晰轨迹。 在全球经济格局深刻调整、地缘与产业变局叠加的背景下，展望"十五五"，中国金融开放如何再下一 城？ "十四五"答卷： 标志性制度突破 过去五年，"十四五"规划下的中国金融开放以制度型开放为核心，实现了从市场准入到规则对接的历史 性跨越。外资持股比例限制全面取消，沪深港通、债券通等互联互通机制不断扩容，标志着中国金融业 从"管道式开放"转向"制度型 ...

Core Insights - The core viewpoint of the articles is that China's financial industry has transitioned from "opening the door" to "restructuring rules" during the "14th Five-Year Plan" period, with significant institutional breakthroughs achieved in financial openness, and the focus is now on deepening these reforms in the upcoming "15th Five-Year Plan" period [1][6]. Summary by Sections Institutional Breakthroughs - The "14th Five-Year Plan" has marked a historic shift in China's financial openness, moving from market access to rule alignment, with key breakthroughs in three main areas: the implementation of the negative list and national treatment framework, upgrades in factor mobility and infrastructure connectivity, and improvements in financial legal systems and macro-prudential frameworks [1][3]. Market Access and Foreign Investment - Restrictions on foreign ownership in key sectors such as securities, funds, futures, and life insurance have been completely lifted, allowing major international investment banks to establish wholly-owned subsidiaries in China. This includes firms like JPMorgan, Goldman Sachs, and Standard Chartered [2]. - By the end of 2024, foreign ownership of A-shares is projected to reach approximately 3.4 trillion yuan, accounting for 4.3% of the total market, an increase of 1.8 percentage points from the end of the "13th Five-Year Plan" [2]. Interconnectivity Mechanisms - Significant progress has been made in interconnectivity mechanisms, expanding from the Shanghai-Hong Kong Stock Connect to include the Shenzhen-Hong Kong Stock Connect, Bond Connect, and others, facilitating a broader range of investment products [2][4]. - The Bond Connect's "southbound" channel has officially opened, and the integration of QFII and RQFII systems has been completed, further broadening cross-border investment channels [2]. Financial Demand and Opportunities - The growing wealth management needs of Chinese residents, driven by the accumulation of financial assets, present substantial opportunities for foreign financial institutions. The total scale of entrusted assets in trust, wealth management, and insurance asset management is expected to reach 154 trillion yuan by the end of 2024, with an annual growth rate of 10.4% [3][4]. Challenges for Foreign Institutions - Foreign financial institutions face significant localization challenges, including insufficient retail network presence and lagging digitalization. Their average net interest margin is 0.6 percentage points lower than that of domestic banks [5]. - The complexity of regulatory compliance and the need to adapt to China's unique regulatory environment pose additional challenges for foreign entities [5]. Future Directions for Financial Openness - The "15th Five-Year Plan" is expected to focus on deepening interconnectivity and aligning rules, with an emphasis on optimizing interconnectivity systems through expanded product offerings and improved risk management tools [6][8]. - Experts suggest further reducing the negative list for financial services and establishing consistent licensing standards for both domestic and foreign institutions to attract high-quality foreign entities [9]. Data Governance and Cross-Border Compliance - Data governance and cross-border compliance are anticipated to be major focuses in the "15th Five-Year Plan," with calls for establishing clear rules for financial data circulation and enhancing cross-border regulatory cooperation [10]. Renminbi Internationalization and Exchange Rate Reform - The internationalization of the renminbi and reforms in the exchange rate mechanism have made substantial progress, with the renminbi's role in global trade settlements and cross-border investments steadily increasing [11][12]. - Future efforts will likely focus on expanding the renminbi's use in energy and commodity settlements, enhancing offshore renminbi centers, and promoting the application of digital renminbi in cross-border transactions [13].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported record high revenue and profit for the first half of 2025, with a significant increase in various business segments, indicating strong market performance and growth potential [1][2] Financial Performance - HKEX's revenue and other income for the first half of 2025 reached HKD 14.076 billion, a 33% increase compared to the first half of 2024 [1] - Shareholder profit attributable to the company was HKD 8.519 billion, up 39% from the previous year [1] - The main business revenue increased by 34% year-on-year, driven by record trading volumes in the cash and stock options markets [1] Business Growth - New stock fundraising in the first half of 2025 grew over eight times compared to the same period in 2024 [2] - Trading and settlement fees increased by 33% due to a significant rise in trading volumes [2] - The average daily trading amount for the Shanghai-Hong Kong Stock Connect reached RMB 171.3 billion, a 32% increase year-on-year [2] Market Initiatives - HKEX plans to implement several measures to enhance market competitiveness, including shortening the settlement cycle for the cash market and expanding the paperless listing mechanism [1] - The company aims to optimize IPO pricing regulations and introduce a phased reduction in the minimum tick size for securities trading [1] Investor Engagement - The participation of mainland investors in offshore markets is increasing, with the average daily trading amount for the Hong Kong Stock Connect reaching HKD 111 billion, nearly three times that of the previous year [2] - Revenue from the Shanghai-Hong Kong Stock Connect rose to HKD 18.13 billion, a record high for the first half of the year [2] Stock Performance - As of the report date, HKEX's stock price was HKD 453.4, reflecting a year-to-date increase of over 56%, with a total market capitalization of HKD 574.6 billion [2]

Group 1 - The Hong Kong Stock Exchange (HKEX) is actively promoting the economic and financial development of the Greater Bay Area, serving as a core financial infrastructure [1] - Recent reforms in listing rules have provided diverse and convenient channels for new economy companies to list in Hong Kong, including those with dual-class share structures and biotech firms without revenue [1] - New economy sectors, such as healthcare, renewable energy, and TMT, account for over 60% of new stock financing in Hong Kong, with total financing reaching HKD 127.9 billion from January to July, ranking first globally [1] Group 2 - HKEX is enhancing connectivity with mainland financial markets through mechanisms like Stock Connect and Bond Connect, facilitating international investment in China and providing mainland funds access to overseas assets [2] - Ongoing collaborations with the Shanghai and Shenzhen stock exchanges aim to optimize Stock Connect by including REITs and introducing block trading mechanisms [2] - HKEX is also focusing on green finance and low-carbon transition, seeking to explore carbon market cooperation opportunities with more financial institutions in the Greater Bay Area [2]

Core Insights - Hong Kong Stock Exchange (HKEX) reported a record high for its mid-year performance in 2025, with revenue and other income reaching HKD 14.076 billion, a year-on-year increase of 33%, and shareholder profit amounting to HKD 8.519 billion, up 39% [1][2] Financial Performance - HKEX's net profit for the first half of 2025 was HKD 8.519 billion, with the second quarter net profit at HKD 4.442 billion, reflecting a 41% increase compared to the second quarter of 2024 [2] - The average daily trading volume in the Hong Kong stock market was HKD 240.2 billion, a significant year-on-year growth of 118% [2] - The daily trading volume for ETFs reached HKD 33.8 billion, marking a 184% increase year-on-year [2] IPO Market Activity - In the first half of 2025, HKEX welcomed 44 new companies, raising a total of HKD 109.4 billion through IPOs, which is a remarkable year-on-year increase of 716% [5] - As of June 30, 2025, HKEX was processing 207 listing applications, indicating a robust IPO market [5] - The strong performance in the IPO market is attributed to policy benefits, market recovery, and the demand for companies to expand internationally [5] Future Outlook - HKEX's CEO, Charles Li, expressed confidence in the exchange's strong performance and plans to enhance platforms, infrastructure, and product offerings to provide diverse products and liquidity for investors [2] - JPMorgan has raised its profit forecasts for HKEX, anticipating an increase in trading volumes, with average daily trading volume predictions for fiscal years 2025 to 2027 adjusted to HKD 235 billion, HKD 250 billion, and HKD 252 billion respectively [6]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong financial performance for the first half of 2025, with significant increases in both revenue and net profit, driven by heightened market activity and a resurgence in IPO fundraising [1][2]. Revenue Performance - For H1 2025, HKEX achieved revenue of HKD 14.076 billion, a year-on-year increase of 32.5%, and a net profit of HKD 8.519 billion, up 39.1% year-on-year [1]. - In Q2 2025, revenue reached HKD 7.219 billion, reflecting a 33.2% year-on-year growth and a 5.3% quarter-on-quarter increase, while net profit was HKD 4.442 billion, up 40.8% year-on-year and 9.0% quarter-on-quarter [1]. Revenue Structure - The revenue sources for HKEX include trading and trading system usage fees, settlement and clearing fees, listing fees, custodial services, investment income, and market data fees [1]. - In H1 2025, trading fees, settlement fees, and custodial service fees accounted for 62.0% of total revenue, an increase of 5.9 percentage points year-on-year [1]. Market Activity - The stock market showed robust activity, with the average daily turnover of Hong Kong stocks reaching HKD 222.8 billion, a 122% increase year-on-year, marking a new half-year high [2]. - The average daily turnover for the Stock Connect program was HKD 111 billion, up 196% year-on-year, indicating a significant increase in participation from mainland investors [2]. IPO Market - In H1 2025, HKEX's listing fees amounted to HKD 4.35 billion, a 1% increase year-on-year, with total IPO fundraising reaching HKD 109.4 billion, a remarkable 716% increase year-on-year, reclaiming the top position in the global IPO market [2]. - A total of 44 companies were listed in the Hong Kong market during the first half of 2025, including the largest IPO globally since 2023 [2]. Derivatives Market - The trading fees from derivatives, including warrants and options, totaled HKD 1.298 billion in H1 2025, a 14% increase year-on-year, with average daily trading volume rising by 11% [3]. - Investment income from margin and clearing funds reached HKD 1.831 billion, a 13% increase year-on-year, driven by an increase in average margin size [3]. Strategic Outlook - HKEX is expected to benefit from a favorable capital market environment and ongoing reforms aimed at attracting high-quality companies to list in Hong Kong [4]. - The company has adjusted its earnings forecasts for 2025, 2026, and 2027, projecting EPS of HKD 13.72, 15.03, and 16.90 respectively, with a target price of HKD 494 based on a 36x PE valuation for 2025 [4].

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges and Clearing Limited (0388.HK) [1] Core Views - The report highlights a significant increase in performance driven by high market activity, with the IPO market returning to the global forefront [1] - For the first half of 2025, the company achieved a revenue of HKD 14.076 billion, representing a year-on-year increase of 32.5%, and a net profit attributable to shareholders of HKD 8.519 billion, up 39.1% year-on-year [1] Revenue Structure - The revenue structure shows a continued rise in market activity, leading to an increase in the proportion of trading and settlement fees. In the first half of 2025, trading and trading system usage fees, settlement and clearing fees, and custody services accounted for 62.0% of total revenue, up 5.9 percentage points year-on-year [2] - The listing fees from the Stock Exchange accounted for 5.8% of total revenue, down 1.0 percentage point year-on-year, while net investment income accounted for 20.4%, down 3.3 percentage points year-on-year [2] Market Activity - The report notes that the stock market's trading activity remains robust, with the IPO fundraising amount returning to the top globally. In the first half of 2025, the total amount raised through IPOs reached HKD 109.4 billion, a staggering increase of 716% year-on-year [4] - The average daily turnover of Hong Kong stocks reached HKD 1.110 trillion, a year-on-year increase of 196%, indicating a significant rise in participation from mainland investors [3] Financial Performance - For the first half of 2025, the total revenue from the cash segment, including trading and settlement fees, reached HKD 5.995 billion, a year-on-year increase of 71% [3] - The report projects that the company will maintain high trading volumes in 2025, benefiting from the favorable conditions in the Hong Kong capital market and the valuation recovery of Chinese stocks [9] Earnings Forecast - The report raises the earnings forecast for the company, estimating EPS for 2025, 2026, and 2027 to be HKD 13.72, HKD 15.03, and HKD 16.90 respectively, with corresponding PE ratios of 32, 29, and 26 times [9] - The target price is set at HKD 494.0, based on a 36 times PE valuation for 2025 [5]

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported a significant increase in revenue and profit for the first half of the year, driven by active trading in the Hong Kong stock market and strong inflows from southbound capital [1] Group 1: Financial Performance - Revenue exceeded 14 billion HKD, with profit reaching 8.519 billion HKD, both showing a year-on-year growth of over 30% [1] - The average daily trading volume surged to 111 billion HKD, nearly three times that of the same period last year, contributing to the strong performance [1] - Income from the Stock Connect program rose to 1.813 billion HKD, marking a record high for the first half of the year [1] Group 2: Market Reaction - Following the earnings announcement, HKEX's stock price initially dropped over 1.24% but quickly rebounded, closing up 1.71% at 441.2 HKD per share [1] - As of August 21, the stock price increased by an additional 0.68% to 444.2 HKD, approaching its yearly high [1] - Year-to-date, HKEX's stock price has risen over 52%, significantly outperforming the Hang Seng Index, which has increased by 25% [1]

Core Insights - Hong Kong Exchanges and Clearing Limited (HKEX) reported a significant increase in revenue and profit for the first half of the year, with total revenue reaching HKD 140.76 billion, a year-on-year growth of 33%, and net profit attributable to shareholders at HKD 85.19 billion, up 39% [1][2] Group 1: Revenue and Profit Growth - The revenue from the Stock Connect program (沪深港通) and other income rose to HKD 18.13 billion, marking a record high for the first half of the year [1][5] - The trading fees and trading system usage fees reached HKD 49.06 billion, a year-on-year increase of 49.11%, while settlement and clearing fees were HKD 31.55 billion, up 48.47% [5] Group 2: Market Activity - The average daily trading volume in the Hong Kong stock market surged to HKD 2,402 billion, an increase of 118% year-on-year, with the average daily trading volume for Southbound Stock Connect reaching HKD 1,110 billion, nearly three times that of the same period last year [5][6] - The IPO market also thrived, with 44 new listings raising HKD 1,094 billion, which is over eight times the amount raised in the same period last year [6] Group 3: Strategic Initiatives - HKEX has implemented several reforms to enhance market efficiency, including the introduction of the "FINI" system to shorten settlement cycles and adjustments to the listing requirements for technology companies [6][7] - The CEO of HKEX indicated that further measures are planned for the second half of the year, including the expansion of paperless listing mechanisms and the implementation of new IPO pricing regulations [7]