Core Viewpoint - The Hong Kong Stock Exchange (HKEX) achieved record high revenues and profits in 2025, driven by increased trading activity, although growth rates showed signs of slowing in the fourth quarter [4][5]. Group 1: Financial Performance - In 2025, HKEX reported total revenue of HKD 29.16 billion, a year-on-year increase of 30.3%, with Q4 showing a year-on-year growth of 14.6% but a quarter-on-quarter decline of 6.0% [4]. - The net profit attributable to shareholders reached HKD 17.75 billion, up 36.0% year-on-year, with Q4 growth of 14.7% year-on-year but a decline of 11.5% quarter-on-quarter [4][5]. - The EBITDA profit margin was 79%, reflecting a 5 percentage point increase year-on-year [4]. Group 2: Revenue Breakdown - Trading fees, system usage fees, and settlement fees totaled HKD 17.38 billion, accounting for 59.6% of total revenue, with a year-on-year increase of 45.9% [5][6]. - Investment income netted HKD 5.11 billion, representing 17.5% of total revenue, with a year-on-year growth of 3.7% [6]. - Listing fees from the exchange amounted to HKD 1.79 billion, making up 6.1% of total revenue, with a year-on-year increase of 20.6% [6]. Group 3: Market Activity - The average daily trading volume for stock securities reached HKD 231.5 billion, a record high, with a year-on-year increase of 92.9% [8]. - The average daily trading volume for derivatives was HKD 18.3 billion, up 55.1% year-on-year [8]. - Northbound and southbound trading average daily transaction amounts were RMB 212.4 billion and HKD 121.1 billion, respectively, both achieving record highs [8]. Group 4: New Listings - In 2025, HKEX saw a significant increase in new listings, with 119 new companies, a year-on-year growth of 67.6% [9]. - The total funds raised from new listings reached HKD 286.9 billion, a 226.0% increase year-on-year, with 66% of this amount coming from new economy sectors [9]. - As of Q4 2025, there were 345 listing applications pending, representing a 310.7% increase from the previous year-end [9].

Core Viewpoint - Everbright Securities maintains an "Overweight" rating for Hong Kong Exchanges and Clearing (HKEX), citing its unique position and strong financial performance in the first three quarters of 2025, with expectations for continued growth in the fourth quarter due to active market sentiment and policy support for mainland companies listing in Hong Kong [1] Financial Performance - In the first three quarters of 2025, HKEX achieved total revenue of HKD 21.85 billion, a year-on-year increase of 36.6%, with the growth rate accelerating by 4.1 percentage points compared to the first half of the year; Q3 revenue growth was 44.7% year-on-year and 7.7% quarter-on-quarter [2] - The net profit attributable to shareholders for the first three quarters was HKD 13.42 billion, up 44.8% year-on-year, with a growth rate increase of 5.7 percentage points compared to the first half; Q3 net profit growth was 55.8% year-on-year and 10.3% quarter-on-quarter [2] Revenue Breakdown - Trading fees, system usage fees, and settlement fees accounted for HKD 13.1 billion (60.0% of total revenue), up 60.5% year-on-year, with Q3 growth rates of 83.6% year-on-year and 28.2% quarter-on-quarter, driven by heightened trading activity in the Hong Kong stock market [2] - Investment income for the first three quarters was HKD 3.89 billion (17.8% of total revenue), a year-on-year increase of 4.4%, with a narrowing growth rate compared to the first half; net investment income from funds was HKD 1.3 billion, down 7.8% year-on-year [3] - Listing fee revenue was HKD 1.27 billion (5.8% of total revenue), up 17.1% year-on-year, benefiting from increased market volatility and demand for structured products [3] Market Activity - The average daily trading volume for stock securities on the exchange reached HKD 238.7 billion in the first three quarters, a record high, with a year-on-year increase of 132.4%; Q3 growth was 149.9% year-on-year [4] - The average daily trading volume for derivatives was HKD 17.7 billion, up 67.0% year-on-year, with Q3 growth of 59.5% year-on-year [4] - Northbound and southbound trading average daily volumes were RMB 206.4 billion and HKD 125.9 billion, respectively, both record highs, with year-on-year increases of 67.4% and 228.7% [4] New Listings - In the first three quarters of 2025, HKEX saw 69 new listings, a year-on-year increase of 53.3%, raising a total of HKD 188.3 billion, which is a 238.7% increase year-on-year; Zijin Mining's listing in Q3 was the second-largest globally this year, raising HKD 28.7 billion [5] - As of the end of Q3 2025, there were 297 listing applications pending, representing a 253.6% increase from the end of the previous year [5]