Core Viewpoint - Bank of America Securities has raised the average daily trading volume forecast for Hong Kong Exchanges and Clearing (HKEX) from HKD 2,400 billion, 2,600 billion, and 2,600 billion for 2025 to 2027, to HKD 2,600 billion, 2,700 billion, and 2,700 billion respectively, while lowering net investment income forecasts by 5% to 7% due to a low interest rate environment, and raising earnings forecasts by 1% to 2%, maintaining a target price of HKD 520 and reiterating a "Buy" rating [1] Group 1 - The expected profit for HKEX in the first three quarters of this year is projected to reach HKD 12.9 billion, representing a year-on-year increase of 39% [1] - The average daily trading amount for the third quarter reached HKD 286 billion, setting a historical high [1] - Net investment income is expected to be affected by fluctuations in Hong Kong interbank offered rates (HIBOR), with a lagged impact likely to manifest in the third quarter [1] Group 2 - Profit growth for HKEX from 2026 to 2027 is expected to slow from 24% in 2025 to 8%, unless there is a significant increase in total market capitalization [1] - Relying solely on trading volume growth may not be sufficient to drive revenue [1] - Derivative products are anticipated to become a key growth engine for HKEX [1] Group 3 - Competition between Hong Kong IPOs and Shanghai and Shenzhen exchanges is expected to intensify, as mainland China places greater emphasis on new technology sectors and may implement incentive policies to retain key enterprises for domestic listings [1]

Group 1: Financial Performance - Hong Kong Exchanges and Clearing Limited reported a revenue and other income of HKD 14.076 billion for the first half of 2025, representing a year-on-year increase of 33% [1] - The profit attributable to shareholders reached HKD 8.519 billion, up 39% year-on-year, with basic earnings per share at HKD 6.74 [1] - In Q2 2025, revenue and other income amounted to HKD 7.219 billion, a 33% increase compared to Q2 2024, while profit attributable to shareholders rose 41% to HKD 4.442 billion [1][3] Group 2: Market Activity - The average daily turnover in the cash market reached HKD 240.2 billion in the first half of 2025, more than double that of the first half of 2024 [2] - The average daily contract volume in the derivatives market increased by 11% year-on-year to 1.7 million contracts [2] - The fundraising amount in the Hong Kong IPO market surged to over eight times that of the first half of 2024, reclaiming the top position globally [2] Group 3: Operational Insights - Operating expenses increased by 6% compared to the first half of 2024, primarily due to non-recurring fines and legal fees related to the 2022 nickel market incident [3] - In Q2 2025, the average daily turnover in the cash market continued its strong momentum, achieving a record of HKD 237.7 billion [3] - The company plans to implement several strategic initiatives in the second half of 2025 to enhance market competitiveness, including shortening the settlement cycle and expanding paperless listing mechanisms [4]

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) has established itself as a vital international financial center, celebrating its 25th anniversary with significant growth in market metrics and a commitment to connecting China with global markets [1][2]. Group 1: Market Growth and Performance - Since its inception, HKEX has transformed from a local exchange to a leading global market operator, with average daily trading volume exceeding HKD 240 billion in 2023, a more than 17-fold increase from HKD 13 billion in 2000 [1]. - The derivatives market has seen even more remarkable growth, with average daily trading volume reaching 1.76 million contracts in 2023, compared to just 37,500 contracts in 2000 [1]. - The new stock market remains active, with HKEX completing 31 IPOs in 2023, raising over HKD 88.4 billion, solidifying its position as the world's leading fundraising market [2]. Group 2: Market Capitalization and Dividends - The total market capitalization of the Hong Kong stock market surged from HKD 3.92 trillion in March 2022 to HKD 40.93 trillion by May 2025, representing an increase of over 9 times [2]. - Total dividends distributed by Hong Kong-listed companies increased from HKD 907 million in 2000 to over HKD 13.5 trillion in 2024, marking a growth of more than 10 times [2]. Group 3: Strategic Initiatives and Future Outlook - HKEX has played a crucial role in facilitating the listing of mainland companies, attracting trillions in capital and enhancing the connectivity between the mainland and international markets [3][4]. - The exchange has implemented various reforms, including the introduction of the Stock Connect program, which has expanded to include bonds, ETFs, and interest rate swaps, with plans for further enhancements [5]. - HKEX aims to continue improving its market appeal and competitiveness, focusing on optimizing infrastructure and expanding its product offerings to support quality enterprises globally [5].