Hong Kong Exchanges and Clearing Limited (HKEX) has delivered a stunning performance for the first half of 2025, achieving unprecedented revenue and profit figures that underscore its growing dominance as a global financial hub. The exchange’s strategic initiatives, including facilitating major listings and enhancing market infrastructure, have positioned it for continued growth amid evolving global market conditions. This remarkable achievement comes as HKEX prepares to implement significant market reforms, including the much-anticipated shortening of the settlement cycle, which promises to further boost the exchange’s competitiveness on the world stage.
Record-Breaking Financial Performance
HKEX reported extraordinary financial results for the first six months of 2025, demonstrating robust growth across all key metrics. The exchange recorded revenue and other income of HK$140.76 billion, representing a substantial 33% increase compared to the same period in 2024. This impressive growth trajectory underscores the exchange’s successful strategic positioning and its ability to capitalize on favorable market conditions.
Profitability Reaches New Heights
The profit performance was equally remarkable, with shareholders’ attributable profit reaching HK$85.19 billion, a 39% year-on-year increase. This substantial profit growth significantly outpaced revenue growth, indicating improved operational efficiency and margin expansion. The exchange’s basic earnings per share stood at HK$6.74, reflecting the strong underlying business performance and effective capital management.
Generous Shareholder Returns
Reflecting confidence in its financial position and future prospects, HKEX’s board declared an interim dividend of HK$6.00 per share, payable in cash. This represents a 38% increase compared to the previous year’s interim dividend, demonstrating the exchange’s commitment to returning value to shareholders while maintaining sufficient capital for strategic investments and growth initiatives.
Trading Volumes Hit Historic Highs
The exceptional financial performance was driven by record-breaking trading activity across HKEX’s various market segments. The exchange witnessed unprecedented participation from both domestic and international investors, contributing to heightened liquidity and transaction volumes.
Equity Market Dominance
HKEX’s securities market achieved an average daily turnover of HK$240.2 billion during the first half of 2025, representing an extraordinary 118% increase compared to the same period last year. This surge in trading activity reflects growing investor confidence, increased market participation, and the successful listing of several high-profile companies that attracted significant trading interest.
Derivatives Market Expansion
The derivatives market also demonstrated strong performance, with average daily volume for futures and options products exceeding 1.7 million contracts, an 11% year-on-year increase. This growth underscores the exchange’s success in developing its derivatives offerings and attracting diverse market participants, including institutional investors seeking risk management tools and speculative opportunities.
ETF Market Explosion
Hong Kong’s ETF market experienced phenomenal growth, with average daily turnover reaching HK$33.8 billion, representing a massive 184% increase compared to the first half of 2024. This explosive growth highlights the increasing popularity of ETFs among investors seeking diversified exposure to various asset classes and markets through Hong Kong’s well-regulated exchange platform.
Connect Programs Achieve Milestones
The Stock Connect programs linking Hong Kong with mainland China markets delivered record performance, further solidifying HKEX’s role as the primary gateway for cross-border investment flows between China and global markets.
Northbound and Southbound Records
Both northbound (Shanghai/Shenzhen to Hong Kong) and southbound (Hong Kong to Shanghai/Shenzhen) trading through the Connect programs reached all-time highs for the period. The sustained growth in Connect program volumes demonstrates the increasing integration of Chinese and international markets and Hong Kong’s critical role in facilitating these cross-border investment flows.
Bond Connect Strengthens
The Bond Connect Northbound trading also achieved record performance, with average daily turnover increasing by 3% year-on-year. This steady growth, though more modest than the equity connect programs, reflects the gradual opening of China’s bond market to international investors and Hong Kong’s position as the preferred access point for global fixed income investors seeking exposure to Chinese debt securities.
IPO Market Leadership
Hong Kong’s IPO market demonstrated exceptional strength in the first half of 2025, reclaiming its position as the world’s leading venue for new listings and further capital raising activities.
Global Fundraising Champion
HKEX hosted 44 new listings during the period, including major companies such as Contemporary Amperex Technology (CATL). The total funds raised through IPOs reached HK$109.4 billion, an astonishing 716% increase compared to the same period in 2024. This remarkable achievement positioned Hong Kong as the top global exchange for IPO fundraising, ahead of traditional competitors like New York and London.
Robust Pipeline of Future Listings
The pipeline for future listings appears exceptionally strong, with the number of active IPO applications increasing to 207 as of June 30, 2025, more than double the 84 applications at the end of 2024. This surge in applications indicates strong issuer confidence in Hong Kong’s market and suggests continued IPO market strength in the coming months.
Follow-on Offerings Set Records
Major follow-on offerings by established listed companies contributed significantly to market activity. BYD Company Limited and Xiaomi Corporation conducted substantial placements, raising HK$43.5 billion and HK$42.6 billion respectively. These major capital raising activities helped drive total follow-on issuance to HK$244.8 billion, the highest half-yearly figure since 2021, demonstrating Hong Kong’s capability to support large-scale capital raising for both new and existing listed companies.
Strategic Initiatives and Market Enhancements
HKEX has been proactively implementing strategic initiatives to strengthen its market infrastructure, enhance competitiveness, and support the development of new economic sectors.
Tech Company Fast Track
In May 2025, HKEX and the Securities and Futures Commission (SFC) jointly announced the launch of a “Tech Enterprise Channel” designed to assist specialized technology companies and biotech firms in preparing more efficiently for listing in Hong Kong. This initiative aims to enhance market quality and transparency while further developing the new economy ecosystem. According to HKEX CEO Bonnie Chan (陈翊庭), the channel has already attracted 50 new applications under Chapters 18A and 18C since its introduction.
Transparency and Investor Protection
Addressing concerns about transparency with confidential IPO applications, Chan emphasized that while HKEX provides facilities for confidential submissions—a practice common in global markets—this doesn’t equate to lack of transparency. Companies are still required to make appropriate disclosures at the proper time, such as when publishing prospectuses, ensuring investors have sufficient time to conduct thorough research before making investment decisions.
Settlement Cycle Reform: Implementing T+1
One of the most significant upcoming market enhancements is the planned shortening of the settlement cycle for the cash market, a move that will align Hong Kong with other major global markets and improve market efficiency.
Market Consultation and Implementation Timeline
HKEX Chief Operating Officer Jennifer Lee (刘碧茵) addressed the upcoming transition to T+1 settlement, noting that the exchange has collected substantial feedback through market consultation. She emphasized that aligning with global standards is essential for Hong Kong’s competitiveness, and the exchange is committed to promptly establishing a clear implementation timetable. Lee confirmed that HKEX already possesses the technical capability to support T+1 settlement, with current focus on determining the optimal transition approach, including appropriate transition periods.
Benefits of Shorter Settlement Cycles
The move to T+1 settlement offers numerous benefits:– Reduced counterparty risk: Shorter settlement periods decrease the time during which parties are exposed to potential default– Lower capital requirements: Market participants can allocate capital more efficiently with faster settlement– Enhanced liquidity: Faster settlement cycles can improve overall market liquidity– Global alignment: Harmonizing with other major markets simplifies operations for global participants
Additional Market Enhancement Initiatives
Beyond settlement cycle reform, HKEX is pursuing several other initiatives to strengthen market structure and competitiveness.
Trading Hours Extension Considerations
Regarding potential extension of trading hours, CEO Bonnie Chan indicated that conditions exist for further extending derivatives trading beyond the current 3:00 AM close. However, she emphasized that the exchange has no predetermined position and must carefully consider industry workflow pressures and risk management implications, particularly the reduced error correction window with continuous trading. HKEX will study this matter thoroughly, drawing on international peers’ experiences while considering local market specifics.
Trading Lot Size Review
HKEX plans to consult the market regarding adjustments to trading lot sizes (board lots) by year-end. Chan noted that currently, listed companies have significant flexibility in determining their trading lot sizes, and the adjustment process is not unduly burdensome. Companies whose share prices have accumulated substantial increases may particularly benefit from considering lot size adjustments to improve accessibility for retail investors.
Future Outlook and Strategic Direction
HKEX’s exceptional first-half performance and ongoing strategic initiatives position the exchange favorably for continued success in the evolving global financial landscape.
Sustaining Momentum
For the second half of 2025, HKEX plans to advance several measures to further enhance market competitiveness and attractiveness. These include preparations for shortening the settlement cycle, expanding the paperless listing mechanism, implementing optimized IPO pricing rules, and launching the first phase of reduced minimum tick sizes for securities trading. These initiatives demonstrate HKEX’s commitment to continuous improvement and adaptation to market needs.
Strengthening Hong Kong’s Financial Hub Status
The exchange’s performance and strategic direction reinforce Hong Kong’s position as the preferred listing and fundraising venue for companies seeking access to both mainland Chinese and international investors. The successful integration with mainland markets through Connect programs, combined with robust regulatory standards and market infrastructure, creates a compelling value proposition for global market participants. As global financial markets continue to evolve, HKEX’s proactive approach to market enhancement and reform ensures it remains well-positioned to capitalize on emerging opportunities. The exchange’s record performance in the first half of 2025, combined with its ambitious plans for market improvements, signals strong potential for continued growth and leadership in global financial markets. Market participants should closely monitor the implementation of these initiatives, particularly the transition to T+1 settlement, which represents a significant step forward in market efficiency and global integration.