2026-02-26 02:32Financial 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][7] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a total dividend of HKD 12.52 per share for 2025, a 35% increase from 2024 [7] - Average daily trading (ADT) reached HKD 249.8 billion, a 90% increase year-on-year, with both Northbound and Southbound Stock Connect achieving all-time highs [7][9] Business Line Data and Key Metrics Changes - Trading volumes in the cash and derivatives markets reached record highs, with derivatives market volumes increasing by 7% and commodities market volumes by 8% compared to 2024 [7][9] - The introduction of new IPO price discovery rules and support for specialist technology issuers contributed to increased market activity [3][4] Market Data and Key Metrics Changes - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] - The average daily trading volume of exchange-traded products nearly doubled from the previous year [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while expanding into fixed income, currency, and commodities [27][18] - The company plans to strengthen connectivity with other Asian markets and enhance its product offerings to meet the growing demand for China assets [19][18] - Strategic investments, such as the acquisition of a 20% stake in CMU OmniClear, are intended to bolster Hong Kong's position as a global hub for bond fundraising and risk management [4][21] 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][27] - The macroeconomic landscape presents both challenges and opportunities, with a focus on capital diversification and the evolving needs of global investors [16][26] Other Important Information - HKEX's effective tax rate increased to 15.7% in 2025 due to new tax provisions [8] - The company has made significant investments in technology and market reforms to enhance liquidity and attract high-quality issuers [24][25] Q&A Session Summary Question: Potential expansion of connectivity with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [32][34] Question: Cost discipline amid increasing initiatives - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in future growth areas [35][36] Question: Revenue contribution from CMU OmniClear - Management indicated that the investment in CMU OmniClear is a strategic step towards building a comprehensive fixed income ecosystem, with potential for long-term returns [42][44] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for completed IPOs [55][56] Question: Timeline for Southbound RMB counter - Management confirmed ongoing progress on the Southbound RMB counter, with plans to accelerate implementation [57] Question: Cost growth expectations - Management projected a moderate growth in operating expenses, emphasizing stringent cost control measures while investing in future initiatives [66][68] Question: Importance of T-bond futures - Management acknowledged strong market demand for T-bond futures and confirmed ongoing discussions with partners to advance this initiative [62][64]