2026-02-26 02:30Financial Data and Key Metrics Changes - HKEX reported record revenue and profit for 2025, with revenue and other income reaching HKD 29.2 billion, a 30% increase from 2024, and profit after tax at HKD 17.8 billion, up 36% year-on-year [6][8] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a second interim dividend of HKD 6.52 per share, totaling HKD 12.52 for the year, a 35% increase from 2024 [7] Business Line Data and Key Metrics Changes - Trading volumes in Hong Kong cash and derivatives markets reached record highs, with average daily turnover (ADT) of HKD 249.8 billion, a 90% increase year-on-year [8] - The derivatives market saw a 7% increase in trading volumes, while the commodities market increased by 8% compared to 2024 [8] - The group's effective tax rate rose to 15.7% in 2025 from 11.4% in 2024 due to new tax provisions [9] Market Data and Key Metrics Changes - Northbound and Southbound Stock Connect recorded all-time highs, indicating strong cross-border trading activity [8] - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while developing fixed income, currency, and commodities markets [25] - The company is expanding its connectivity with markets in the Middle East and Southeast Asia, enhancing its regional liquidity pool [20] - Strategic initiatives include the introduction of new IPO price discovery rules and the launch of the HKEX Tech 100 Index, focusing on Hong Kong's technology sector [3][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum in 2026, supported by a robust IPO pipeline and ongoing market reforms [14][25] - The macro landscape shows persistent uncertainty, but there are significant opportunities for capital diversification into Asia [16][17] - The company is well-positioned to capture emerging trends in technology and innovation sectors, particularly from mainland China [17][18] Other Important Information - HKEX's investment in CMU OmniClear is part of its strategy to strengthen Hong Kong's position as a global hub for bond fundraising and risk management [4][21] - The company is committed to future-proofing its technology and operations to meet growing demand for China assets [24] Q&A Session Summary Question: Potential expansion of connectivities with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [30][31] Question: Cost growth in line with revenue - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in technology and personnel to support future growth [32] Question: Revenue contribution from CMU OmniClear - Management indicated that while the initial revenue contribution from CMU would be modest, it is a strategic investment aimed at building a comprehensive fixed income ecosystem [42][46] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for recent IPOs [53] Question: Timeline for Southbound RMB counter - Management confirmed that the implementation of the Southbound RMB counter is progressing, with updates to be shared as they become available [54] Question: Multi-asset business monetization opportunities - Management acknowledged the significant potential in the fixed income market and the need for a holistic approach to developing a multi-asset ecosystem [78][79]