– HKEX achieves historic highs with H1 2025 revenue of HK$140.76 billion, up 33% year-on-year
– Net profit soars 39% to HK$85.19 billion, with interim dividend of HK$6.00 per share
– Securities market average daily turnover jumps 118% to HK$2.402 trillion
– Hong Kong reclaims top spot for global IPO fundraising with HK$1.094 trillion raised
– Connect programs set new records as cross-border investment activity accelerates
Hong Kong Exchanges and Clearing Limited (HKEX) has delivered an extraordinary first-half performance that shattered all previous records, demonstrating the exchange’s resilience and strategic positioning amid global market volatility. The exchange’s record-breaking performance across multiple metrics underscores its growing importance as a gateway between Chinese and international capital markets. With revenue surging 33% and profit climbing 39%, HKEX has positioned itself at the center of Asia’s financial ecosystem during a period of significant macroeconomic uncertainty.
Financial Performance Highlights
HKEX’s financial results for the first half of 2025 represent the strongest semi-annual performance in the exchange’s history. Total revenue and other income reached HK$140.76 billion, representing a substantial 33% increase compared to the same period in 2024. This remarkable growth was driven by increased activity across all business segments, particularly in trading, clearing, and listing services.
The exchange’s profit performance was even more impressive, with net profit attributable to shareholders jumping 39% to HK$85.19 billion. This outstanding profitability enabled the board to declare an interim dividend of HK$6.00 per share, payable in cash. The dividend announcement reflects management’s confidence in the sustainability of the exchange’s performance and its commitment to returning value to shareholders.
Key Financial Metrics Analysis
Several factors contributed to this exceptional financial performance. The surge in trading volumes across both equity and derivative markets generated significant revenue from trading fees and clearing services. Additionally, the resurgence of the IPO market brought substantial listing fees and related income. The exchange’s diversified revenue streams proved particularly valuable as different business segments complemented each other throughout the period.
The cost-to-income ratio improved significantly, demonstrating operational efficiency despite the increased activity levels. This improvement suggests that HKEX has successfully scaled its operations to handle higher volumes without proportionally increasing costs, thereby enhancing profitability margins.
Trading Activity Reaches Unprecedented Levels
The first half of 2025 witnessed extraordinary trading activity across HKEX’s markets, setting multiple historical records. The securities market achieved an average daily turnover of HK$2.402 trillion, representing a staggering 118% increase year-on-year. This surge in trading activity reflected growing investor confidence and increased participation from both domestic and international investors.
Derivatives markets also performed strongly, with futures and options products recording an average daily volume of over 1.7 million contracts, an 11% increase from the previous year. The growth in derivatives trading indicates sophisticated investors are increasingly using HKEX’s products for risk management and speculative purposes.
ETF Market Expansion
Hong Kong’s ETF market experienced particularly dramatic growth, with average daily turnover reaching HK$338 billion, a 184% increase compared to the first half of 2024. This explosive growth underscores the increasing popularity of ETFs among both institutional and retail investors seeking diversified exposure to various markets and sectors.
The exchange introduced several innovative ETF products during the period, including the first Hang Seng Tech Index covered call ETF and Asia’s first single-stock leveraged and inverse products. These product innovations have strengthened Hong Kong’s position as a leading exchange-traded products (ETP) hub in the region.
IPO Market Leadership Restored
Hong Kong reclaimed its position as the world’s leading venue for initial public offerings during the first half of 2025, marking a significant comeback for the exchange’s listing business. A total of 44 companies launched IPOs on HKEX, raising combined proceeds of HK$1.094 trillion. This represents a seven-fold increase compared to the same period in 2024 and constitutes the strongest half-year performance since 2021.
The listing of Contemporary Amperex Technology Limited (CATL) in May 2025 particularly stood out, raising HK$41 billion and becoming Hong Kong’s largest IPO since February 2021. This landmark listing was followed by significant offerings from Hengrui Pharmaceuticals, Haitian Flavouring & Food Company, and Sanhua Intelligent Controls, further cementing Hong Kong’s status as the preferred fundraising destination for mainland Chinese companies.
International Listings and Pipeline Strength
International issuer interest in Hong Kong listings showed notable improvement, with several companies from Southeast Asia choosing HKEX for their public offerings. This diversification in listing origins represents an important strategic development for the exchange as it seeks to broaden its appeal beyond Chinese companies.
The pipeline for future listings appears exceptionally strong, with the number of active IPO applications reaching 207 as of June 30, 2025—more than double the 84 applications at the end of 2024. This robust pipeline suggests that the exchange’s record-breaking performance in the first half may continue through the remainder of the year and into 2026.
Connect Programs Drive Cross-Border Investment
The Stock Connect programs linking Hong Kong with mainland exchanges achieved record performance during the first half of 2025. Northbound trading (through which international investors access mainland China stocks) recorded average daily turnover of RMB 1.713 trillion, a 32% increase year-on-year. Southbound trading (through which mainland investors access Hong Kong stocks) saw even more dramatic growth, with average daily turnover reaching HK$1.110 trillion—nearly triple the volume from the same period in 2024.
Southbound trading accounted for 23% of Hong Kong’s total cash market turnover, highlighting the growing importance of mainland investors in the Hong Kong market. This increased participation reflects mainland investors’ ongoing search for investment diversification and exposure to international markets.
Revenue Contribution and Future Expansion
The Connect programs generated HK$6.14 billion in additional revenue for HKEX, bringing total Connect-related income to HK$18.13 billion—a record high. Of this amount, HK$14.45 billion came from trading and settlement activities, demonstrating the substantial economic value created by these cross-border investment channels.
HKEX continues to work with regulators and exchange partners to expand the Connect programs’ product offerings. Plans to include RMB-denominated stocks in Southbound trading would allow mainland investors to use yuan directly when buying Hong Kong-listed shares, further deepening market integration between Hong Kong and mainland China.
Strategic Initiatives and Infrastructure Development
HKEX made significant progress on several strategic initiatives during the first half of 2025. In March, the exchange entered into a cooperation agreement with Hong Kong Monetary Authority’s wholly-owned subsidiary, Swiftclear Clearing Limited, to explore optimizations for Hong Kong’s post-trade securities infrastructure, including developing an Asian international central securities depository platform (ICSD).
This agreement represents an important milestone in developing Hong Kong’s fixed income and currency product ecosystem and supporting RMB internationalization. It further strengthens Hong Kong’s position as an international risk management center and leading offshore RMB business hub.
Product Innovation and Market Structure Improvements
HKEX introduced several market structure enhancements during the period. In June 2025, the exchange optimized the securities market transaction fee structure to improve market efficiency and ensure fees more closely correlate with transaction values. In July, HKEX launched an order routing service for the integrated fund platform to facilitate interaction between fund distributors and registration agents.
The exchange also published a consultation paper to guide market discussion on shortening the settlement cycle for Hong Kong’s cash equity market. These infrastructure improvements aim to enhance Hong Kong’s competitiveness as a global financial center and align its practices with international standards.
Leadership Perspective and Market Outlook
HKEX CEO Bonnie Chan (陈翊庭) expressed satisfaction with the exchange’s performance, stating: “Hong Kong Exchange started 2025 strongly, achieving the best half-year results in history while making significant progress strategically. Facing ongoing macroeconomic volatility and geopolitical changes, we have persisted in promoting innovation, enhancing vitality and resilience, greatly improving our markets’ competitiveness and attractiveness.”
HKEX Chairman Carlson Tong (唐家成) struck a cautiously optimistic tone regarding the outlook for the second half of 2025, noting that external uncertainties including tariff measures, geopolitical risks, and interest rate volatility require careful monitoring. However, he expressed confidence in the exchange’s ability to navigate these challenges and continue driving steady business development.
Addressing Market Challenges
Despite the exceptional performance, HKEX leadership remains mindful of several challenges. The exchange continues to implement recommendations from the Task Force on Enhancing Stock Market Liquidity while reviewing listing rules to ensure they remain appropriate for market development. The planned implementation of a paperless securities market regime in 2026 represents another significant initiative that will require careful preparation from all market participants.
The exchange also faces competition from other financial centers in Asia and globally. Maintaining Hong Kong’s competitive edge will require continued innovation, infrastructure investment, and close collaboration with regulators and market participants.
Sustaining Extraordinary Momentum
HKEX’s record-breaking performance in the first half of 2025 demonstrates the exchange’s successful adaptation to evolving market conditions and its strategic positioning within global financial markets. The exceptional growth across trading, listings, and Connect programs highlights Hong Kong’s unique role bridging Chinese and international capital markets.
While external challenges remain, including geopolitical tensions and macroeconomic uncertainties, HKEX’s diversified business model and ongoing strategic initiatives position it well for continued success. Investors and market participants should monitor the exchange’s progress in product innovation, market infrastructure development, and expansion of cross-border investment channels as key indicators of its future trajectory. The remarkable first-half results suggest that Hong Kong’s status as a leading global financial center continues to strengthen, offering significant opportunities for those positioned to participate in its growth story.