Investment Rating - The report maintains a "Buy" rating for the company [5][51]. Core Views - As of March 9, 2026, the company's PE ratio is 29.06x, which is at the 12th percentile historically since 2016, indicating a certain level of value for allocation. It is expected that with the continuous enhancement of the mutual access policy in the Hong Kong capital market, liquidity in the Hong Kong stock market will continue to rise, leading to an increase in overall market activity and valuation. The company is projected to achieve revenue and other income of HKD 365 billion, 391 billion, and 413 billion for 2026, 2027, and 2028 respectively, with net profit attributable to shareholders of HKD 226 billion, 241 billion, and 256 billion, corresponding to PE valuations of 22.9x, 21.4x, and 20.2x respectively [2][51]. Summary by Sections Market Environment - The Hong Kong stock market remains active, with the overall trading volume at historical highs. In February, the average daily trading (ADT) for the Hong Kong Stock Exchange was HKD 2,468 billion, reflecting a month-on-month decrease of 9.4% and a year-on-year decrease of 17.0%. The Northbound trading ADT was HKD 3,807 billion, down 16.1% month-on-month but up 45.2% year-on-year, while Southbound trading ADT was HKD 1,142 billion, down 14.1% month-on-month and down 28.6% year-on-year [6][16]. Derivatives Market - In February, both futures and options trading volumes increased month-on-month. The average daily volume (ADV) for futures was 68.4 million contracts, up 3.8% month-on-month but down 25.5% year-on-year. The ADV for options was 105.0 million contracts, up 0.2% month-on-month but down 21.9% year-on-year [19][20]. Primary Market - The IPO scale in the Hong Kong stock market saw significant growth in February, with a total of 24 new stocks listed, raising a total of HKD 923 billion, which is a year-on-year increase of 1052.4%. The average size of each IPO was HKD 38.5 billion, up 332.2% year-on-year. Notably, 42% of the new listings were from the information technology sector, contributing 48% of the total fundraising [31][32]. Investment Income - As of the end of February, the relevant interest rates for investment income showed a general decline. The 6-month HIBOR was 2.73%, the 1-month HIBOR was 2.41%, and the overnight HIBOR was 2.55%, reflecting month-on-month changes of -0.16 percentage points, -0.20 percentage points, and +0.37 percentage points respectively [41].

Core Viewpoint - Hong Kong Stock Exchange (HKEX) reported strong growth in revenue and profit for the year 2025, driven by high market activity and a favorable economic environment [1] Group 1: Financial Performance - HKEX achieved a total revenue of HKD 23.745 billion, representing a year-over-year increase of 37% [1] - The net profit attributable to shareholders reached HKD 17.754 billion, up 36% year-over-year [1] - The return on equity (ROE) for the year was 30.5%, an increase of 6.3 percentage points year-over-year [1] Group 2: Revenue Breakdown - Revenue from trading fees and trading system usage increased by 44%, while clearing and settlement fees rose by 49% [1] - Revenue from various segments showed diverse growth: cash equities up 58%, equity securities and derivatives up 18%, commodities up 13%, and market data fees up 8% [1] - The revenue from the cash equities segment was particularly strong, with daily average trading volume increasing by 93% to HKD 231.5 billion [2] Group 3: IPO Market and Trading Volume - The IPO market in Hong Kong was robust, with 119 IPOs raising HKD 645.9 billion, a 236% increase year-over-year [2] - Daily average trading volume for the Shanghai-Hong Kong Stock Connect was HKD 212.4 billion, up 42% year-over-year, while the Hong Kong Stock Connect averaged HKD 121.1 billion, up 151% [2] Group 4: Derivatives and Investment Income - The derivatives segment saw a daily average trading volume of HKD 18.3 billion, a 55% increase year-over-year, with trading fees rising by 48% [3] - Investment income for HKEX reached HKD 5.111 billion, a 4% increase year-over-year, driven by higher margins and increased fund sizes [4] Group 5: Future Outlook - HKEX is expected to maintain its position as a key player in the primary market, supported by the recovery of IPO activities from mainland companies [5] - Despite short-term fluctuations in the secondary market, the long-term outlook remains positive, with expectations of increased liquidity and market recovery [5] - Profit forecasts for 2026-2028 have been slightly adjusted, with projected net profits of HKD 19.1 billion, HKD 20 billion, and HKD 21 billion respectively, reflecting year-over-year growth [5]

Market Overview - As of January 2026, the total market capitalization of the Hong Kong securities market reached HKD 50.8 trillion, a 44% increase from HKD 35.4 trillion in the same period last year [1] - In January 2026, the Hong Kong Stock Exchange welcomed 13 new listings, a 63% increase compared to 8 new listings in January 2025 [1] - The total fundraising amount in January 2026 was HKD 531 billion, up 318% from HKD 127 billion in January 2025 [1] Trading Activity - The average daily trading amount in January 2026 was HKD 2,723 billion, an 89% increase from HKD 1,438 billion in January 2025 [1] - The average daily trading amount for derivative warrants was HKD 78 billion, a 77% increase from HKD 44 billion in January 2025 [1] - The average daily trading amount for bull and bear certificates was HKD 142 billion, a 100% increase from HKD 71 billion in January 2025 [1] - The average daily trading amount for exchange-traded funds was HKD 359 billion, a 69% increase from HKD 212 billion in January 2025 [1] - The average daily trading amount for leveraged and inverse products was HKD 31 billion, a 19% increase from HKD 26 billion in January 2025 [1] Derivatives Market - The average daily trading volume for futures and options in January 2026 was 1,706,438 contracts, an 18% increase from 1,452,108 contracts in January 2025 [2] - The average daily trading volume for stock options was 900,960 contracts, a 19% increase from 759,565 contracts in January 2025 [2] Historical Records - On January 29, 2026, the trading volume of the Hang Seng Tech Index options reached a historical high of 39,229 contracts [3] - On January 28, 2026, the trading volume of the Hang Seng Biotech Index futures reached a historical high of 1,013 contracts [4]

Core Insights - The Hong Kong financial market demonstrated significant activity in 2025, setting multiple trading records in both the primary and secondary markets, reinforcing its status as a leading international financial center in Asia [1] Group 1: Market Performance - The average daily turnover in the cash market reached a record high of HKD 249.8 billion, representing a year-on-year increase of 89.5% [2] - Hong Kong regained its position as the world's top IPO market in 2025, with 119 new listings raising a total of HKD 285.8 billion, including three companies that ranked among the top ten global IPOs of the year [4] - The derivatives market also saw a record average daily trading volume of 1.66 million contracts, an increase of 7% year-on-year [5] Group 2: Product Innovations and Growth - Stock options became one of the most actively traded products, with an average daily trading volume rising by 22% to 879,831 contracts [8] - The offshore RMB deposits and cross-border settlement volumes increased, leading to a rise in RMB currency futures trading, with an average daily volume of 103,626 contracts, up 8.7% from 2024 [9] - The average daily turnover for ETFs reached HKD 33 billion, a 108% increase from 2024, with several innovative products launched [10] Group 3: Trading Infrastructure and Services - The Central Clearing System processed an average of 3.8 million transactions daily, a 67% increase from 2024, reflecting the market's resilience and the effectiveness of infrastructure investments [14] - The trading volume for structured products like bull-bear certificates and warrants was robust, with bull-bear certificates achieving an average daily turnover of HKD 10.5 billion, up 59% year-on-year [12]

Core Insights - The Hong Kong Stock Exchange (HKEX) reported a total market capitalization of HKD 47.4 trillion by the end of December 2025, representing a 34% increase from HKD 35.3 trillion in the same period of 2024 [1] Trading Activity - The average daily trading volume for 2025 was HKD 2,498 billion, a 90% increase from HKD 1,318 billion in 2024 [1] - The average daily trading volume for derivative warrants in 2025 was HKD 77 billion, up 48% from HKD 52 billion in 2024 [1] - The average daily trading volume for bull and bear certificates in 2025 was HKD 105 billion, an increase of 59% from HKD 66 billion in 2024 [1] - The average daily trading volume for exchange-traded funds (ETFs) in 2025 reached HKD 333 billion, a significant rise of 108% from HKD 160 billion in 2024 [1] - The average daily trading volume for leveraged and inverse products in 2025 was HKD 34 billion, up 17% from HKD 29 billion in 2024 [1] IPO and Fundraising - In 2025, there were 119 new listings, a 68% increase compared to 71 new listings in 2024 [1] - The total amount raised through initial public offerings (IPOs) in 2025 was HKD 2,858 billion, a remarkable 225% increase from HKD 880 billion in 2024 [1] - The total fundraising amount in 2025 reached HKD 6,444 billion, a 235% increase from HKD 1,922 billion in 2024 [1]

Market Overview - The total market capitalization of the Hong Kong Stock Exchange reached HKD 48.0 trillion by the end of November 2025, a 41% increase from HKD 34.0 trillion in the same period last year [1] - The average daily trading amount in November 2025 was HKD 230.7 billion, up 43% from HKD 161.5 billion in November 2024 [1] - For the first eleven months of 2025, the average daily trading amount was HKD 255.8 billion, a significant increase of 95% compared to HKD 130.9 billion in the same period last year [1] Derivative Products - The average daily trading amount for warrants in the first eleven months of 2025 was HKD 8.0 billion, a 54% increase from HKD 5.2 billion in the previous year [2] - The average daily trading amount for bull and bear certificates was HKD 10.6 billion, up 58% from HKD 6.7 billion year-on-year [2] - The average daily trading amount for exchange-traded funds (ETFs) was HKD 34.1 billion, representing a 116% increase from HKD 15.8 billion in the same period last year [2] - The average daily trading amount for leveraged and inverse products was HKD 3.5 billion, a 21% increase from HKD 2.9 billion year-on-year [2] IPO and Fundraising - There were 93 new listings in the first eleven months of 2025, a 52% increase from 61 new listings in the same period last year [2] - The total amount raised through initial public offerings (IPOs) was HKD 259.4 billion, a remarkable increase of 228% compared to HKD 79.1 billion in the previous year [2] - The total fundraising amount for the first eleven months of 2025 reached HKD 575.0 billion, a 240% increase from HKD 169.0 billion year-on-year [3] Futures and Options Market - The average daily trading volume for futures and options in the first eleven months of 2025 was 1,692,878 contracts, an 8% increase from 1,571,189 contracts in the same period last year [4] - The average daily trading volume for stock options was 895,548 contracts, up 23% from 728,430 contracts year-on-year [5] - The average daily trading volume for Renminbi currency futures was 106,121 contracts, a 15% increase from 92,280 contracts in the previous year [5] - On November 25, 2025, the trading volume for Hang Seng Tech Index futures options reached a historical high of 80,803 contracts [5]

Market Overview - The total market capitalization of the Hong Kong Stock Exchange reached HKD 48.1 trillion by the end of October 2025, a 37% increase from HKD 35.2 trillion in the same period last year [1] - The average daily trading amount in October 2025 was HKD 274.9 billion, up 8% from HKD 255 billion in October 2024 [1] - The average daily trading amount for the first ten months of 2025 was HKD 258.2 billion, a significant increase of 102% compared to HKD 127.8 billion in the same period last year [1] Derivative Products Market - The average daily trading volume of futures and options for the first ten months of 2025 was 1,696,752 contracts, a 7% increase from 1,582,570 contracts in the same period last year [2] - The average daily trading volume of stock index futures was 568,701 contracts during the first ten months of 2025 [2] Stock Options and Futures - The average daily trading volume of stock index options was 115,461 contracts for the first ten months of 2025 [3] - The average daily trading volume of stock options increased by 22% to 896,891 contracts compared to 733,117 contracts in the same period last year [3] - The average daily trading volume of stock futures was 8,538 contracts for the first ten months of 2025 [4] Currency Futures - The average daily trading volume of Renminbi currency futures increased by 20% to 107,126 contracts compared to 89,600 contracts in the same period last year [4] Historical Records - On October 2, 2025, the weekly stock options trading volume reached a historical high of 312,545 contracts [4] - On October 27, 2025, the trading volume of Hang Seng Tech Index futures options hit a historical high of 64,982 contracts [5] IPO and Fundraising - There were 81 new listings in the first ten months of 2025, a 50% increase from 54 new listings in the same period last year [1] - The total amount raised through initial public offerings (IPOs) in the first ten months of 2025 was HKD 216 billion, a 209% increase from HKD 70 billion in the same period last year [1] - The total fundraising amount for the first ten months of 2025 reached HKD 507 billion, up 228% from HKD 154.8 billion in the same period last year [1]

Core Insights - The total market capitalization of the Hong Kong Stock Exchange (HKEX) reached HKD 48.1 trillion by the end of October 2025, representing a 37% increase compared to HKD 35.2 trillion in the same period last year [1] - The average daily trading volume for October 2025 was HKD 2,749 billion, an 8% increase from HKD 2,550 billion in October 2024 [1] - The average daily trading volume for the first ten months of 2025 was HKD 2,582 billion, a significant 102% increase from HKD 1,278 billion in the same period last year [2] Trading Activity - The average daily trading volume for derivative warrants in the first ten months of 2025 was HKD 80 billion, up 60% from HKD 50 billion in the previous year [2] - The average daily trading volume for bull and bear certificates was HKD 104 billion, a 60% increase from HKD 65 billion year-on-year [2] - The average daily trading volume for exchange-traded funds (ETFs) was HKD 343 billion, reflecting a 127% increase from HKD 151 billion in the same period last year [2] New Listings and Fundraising - There were 81 new listings in the first ten months of 2025, a 50% increase compared to 54 new listings in the same period last year [2] - The total amount raised through initial public offerings (IPOs) was HKD 2,160 billion, a remarkable 209% increase from HKD 700 billion year-on-year [2] - The total fundraising amount for the first ten months of 2025 reached HKD 5,070 billion, up 228% from HKD 1,548 billion in the previous year [3] Derivative Market Performance - The average daily trading volume for futures and options in the first ten months of 2025 was 1,696,752 contracts, a 7% increase from 1,582,570 contracts in the same period last year [4] - The average daily trading volume for stock index futures was 568,701 contracts [5] - The average daily trading volume for stock options was 896,891 contracts, up 22% from 733,117 contracts year-on-year [6] Historical Records - On October 2, 2025, the weekly trading volume for stock options reached a historical high of 312,545 contracts [7] - On October 27, 2025, the trading volume for Hang Seng Tech Index futures options hit a record high of 64,982 contracts [8]

Core Insights - Hong Kong Stock Exchange (HKEX) reported record high total revenue and net profit for the first three quarters of 2025, with total revenue reaching HKD 21.851 billion, a 37% year-on-year increase, and net profit of HKD 13.419 billion, up 45% [1][3] Revenue and Profit Growth - The significant growth in HKEX's performance is attributed to increased market trading activity and a surge in new stock listings, with major business revenue rising by 41% year-on-year [3][4] - In Q3 alone, HKEX achieved a revenue of HKD 7.775 billion, marking a 45% increase, and a net profit of HKD 4.9 billion, which is a 56% rise compared to the previous year [1][3] Trading Activity - The average daily trading volume for the first three quarters reached HKD 256.4 billion, a remarkable 126% increase year-on-year, driving significant growth in trading and settlement fees [3][4] - Stock trading fee revenue amounted to HKD 4.193 billion, more than double that of the same period last year [3] Stock Connect Performance - The Stock Connect mechanism showed strong performance, with average daily trading volumes for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reaching RMB 206.4 billion and HKD 125.9 billion, respectively, representing year-on-year increases of 67% and 229% [3][4] - Total revenue from Stock Connect rose to HKD 3.225 billion, an 81.18% increase year-on-year [3] New Listings and Capital Raising - The new stock market has become a crucial driver of HKEX's growth, with 297 new stock listing applications processed by the end of Q3, more than triple the 84 applications at the end of 2024 [4] - HKEX led the global market in new stock fundraising, with a total of HKD 188.3 billion raised from 69 companies, over three times the amount raised in the same period last year [4] Strategic Initiatives - HKEX's CEO emphasized ongoing strategic reforms aimed at diversifying the market, enhancing liquidity, and strengthening global connectivity to solidify Hong Kong's status as an international financial center [4] - Industry experts express optimism about HKEX's future, highlighting its core trading business, Stock Connect mechanism, and strong performance in new stock fundraising as indicators of resilience and vitality in the international financial hub [4]

Core Insights - Hong Kong Stock Exchange (HKEX) reported record-high total revenue and net profit for the first three quarters of the year, with total revenue reaching HKD 21.851 billion, a 37% year-on-year increase, and net profit at HKD 13.419 billion, up 45% year-on-year [1][2] Group 1: Financial Performance - In Q3, HKEX's revenue was HKD 7.775 billion, reflecting a 45% year-on-year increase, while net profit was HKD 4.9 billion, up 56% year-on-year [1] - Average daily trading volume for the first three quarters reached HKD 256.4 billion, a 126% increase year-on-year, significantly contributing to the rise in trading and settlement fees [1] - Revenue from equity securities trading fees was HKD 4.193 billion, more than double the amount from the same period last year [1] Group 2: Market Activity - The average daily trading volume for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached RMB 206.4 billion and HKD 125.9 billion respectively, both marking record highs for the first three quarters, with year-on-year increases of 67% and 229% [2] - Total revenue from the Stock Connect program rose to HKD 3.225 billion, an 81.18% increase year-on-year [2] - The derivatives market saw average daily trading volume for warrants and structured products reach HKD 17.7 billion, a 67% year-on-year increase [2] Group 3: New Listings and Capital Raising - The number of new stock listing applications surged, with 297 applications pending as of the end of Q3, more than three times the 84 applications expected by the end of 2024 [2] - HKEX ranked first globally in new stock fundraising for the first three quarters of 2025, with 69 companies listed and total fundraising amounting to HKD 188.3 billion, over three times the amount from the same period last year [2] - The total amount raised from follow-on offerings after listing reached HKD 457.2 billion, more than double the amount from the same period last year, marking the highest level since 2021 [2] Group 4: Strategic Developments - HKEX is actively optimizing mechanisms and responding to investor demands, with ongoing strategic reforms aimed at enhancing market diversification, liquidity, and global connectivity [3] - Analysts express optimism about HKEX's future performance, highlighting its core trading business and capital-raising capabilities as indicators of resilience and vitality as an international financial hub [3] - Continuous attention to international regulatory changes and compliance governance is essential for HKEX to maintain its competitive edge [3]