Q4 2025 Hong Kong Exchanges and Clearing Ltd Earnings Call

February 26, 2026

Today we are very pleased to have our chief executive officer. Miss Bonnie, Juan our coo, Miss Vanessa Lau our group CFO, Mr. Herberto our group CIO Mr. Richard LM and our head of Market Mr. Gregory you.

Bonnie and Herbert will first give a presentation about our business highlights, strategic progress and financial results. Then we are very happy to take some of your questions. Without further Ado over to you, Bonnie,

Good afternoon, everyone. Thank you for joining us today. I hope everyone had an enjoyable holiday season.

I'm pleased to be presenting hk's annual results for 2025 and which I'm joined by a few members of our senior management team.

Now, I will start things off with a quick overview of the highlights. Then our group Chief Financial Officer Herbert Hoy will share more details on our financial performance.

After that, I will return to talk about what is on the horizon, from a strategic perspective. So let's begin.

Hkx delivered record, results in 2025, reporting the group's best ever revenue, and other income and best ever profits for the second consecutive year.

Herbert will go into these numbers in more details in a few moments.

The very decisive return of issuers and investors last year we built confidence in Hong, Kong's markets and unlocked liquidity.

This enabled us to accelerate our strategic initiatives.

For listing, we introduced new IPO price Discovery. Rules that enable a more flexible transparent and fit for purpose, pricing and allocation framework.

And we continue to increase support for specialist technology, issuers.

In the Securities Market, we implemented the first phase of minimum spreads reduction which very quickly began to demonstrate market, efficiency and enhancements.

in the derivative Market, we launched the Hansen, biotech index, Futures complementing, our existing Suite of Biotech related offerings, and Flagship Equity index, derivatives

In 2025, we broke new ground in the development of Hong Kong's, fixed income and currency ecosystem.

Our agreement to acquire a 20% stake in CMU Omnicare was strengthened Hong Kong's position. As the global hub for Fawn fundraising risk management and offshore R&B business.

This lays the foundation for vibrant Fick, Marketplace that mirrors the depth and liquidity of the equities markets.

In Commodities the lme approval of warehouses in Hong Kong. Now expanding to a total of 15 is an important Milestone signaling, the city's potential to becoming a global Commodities trading hub.

And we expanded our index business with the launch of the hkx tech 100 index.

Our first Equity index focused exclusively on Hong Kong's. Technology sector.

In addition to these initiatives, we also invested in establishing our permanent headquarters here in exchange Square, highlighting our confidence in and commitment to Hong. Kong's continued development as an International Financial Center.

These are just some of the highlights of the Strategic initiatives we implemented last year.

But you can get a sense that in addition to the momentum of our markets 2025 was also a year of progress driven by reforms and strategic Investments.

Now, I will return in a few moments to talk about how we are setting. Our journey ahead.

First, let me hand over to Herbert to go over the hkex group financial review over to you Herbert.

Thank you, Bonnie.

Good afternoon and happy New Year.

I'm pleased to be here to share with you our 2025 full year Financial results.

Hkx delivered, a record financial performance in 2024 with revenue and profit.

Both posting record highs for the second consecutive year driven by increasing International investors seeking diversification and opportunities in China related assets together with the greater participation from mainland China, investors.

Surpassing the previous record set more than a decade ago.

Revenue and other income of 29.2 billion dollars was 30% higher than 2024 profit after tax was 17.8 billion dollars and EPS was 14.05 both up, 36% compared with the year before.

The board has declared a second interim. Dividend of $652 per share representing 90% of the group's profit attributable to shareholders. Excluding the results of hkex foundation.

Together with the first interim dividend of $6 per share. The 2025, full year dividend is $12.52 up 35% against 2024.

Turning to the detailed financials of the Year trading volumes, which record highs across all markets, in 2025, headline ADT of 249.8 billion was 90% higher than the year before.

And both Northbound and southbound stock connects saw all-time highs the derivatives and commodities Market, also performs strongly with trading volumes increasing by 7% and 8% respectively compared with 2024.

Revenue and other income was 30% higher than 2024 driven by higher trading and incurring fees from increased volumes higher depository, fees and listing fees.

Our packs was up by 5%, mainly due to the non-recurring FCA find of 90 million dollars paid in 25, and recovery of legal fees of 60 million in 24, both relating to the lme nickel incident. This cost growth is below our historic, uh, cost growth trend line,

The group's effective tax rates increased to 15.7% in 2025, as compared to 11.4% in 2024, due to the provision of Top-Up tax under baps 2.0 taking effect January last year.

Turning to the next page where we look at the fourth quarter 2025, financials against the same period last year.

Revenue and profit were both up. 15% driven by increased trading and clearing fees from higher cash market, and commodities Market volumes, and increased in depository fees and listing fees, partially offset by lower. Net investment income from margin funds, due to higher rebates, payable to participants following the implementation of revised margin rebate, arrangement in the fourth quarter of last year.

Moving on to the 2025 results against the historical trend line driven by the positive Market momentum. Since fourth quarter 2024

2025 performance is above the historical trend line throughout the years. Hkex continues to maintain and attractive ibida margin reflecting the successful diversification of our business in recent years and our cost discipline.

As we have been building and enhancing our product operations Market micro structure and Technology platform over the last few years.

We will well positioned to capture the opportunities arising from this positive momentum.

Next, we take a look at our investment income total. Net investment income of internally managed funds in 2025 was 8% higher than 2024. Primarily driven by the increase in margin fund size as a result of higher margin requirements and higher open positions for stock options and the non-recurring fair value, gains on our unlisted Equity investment, partly offset by lower investment returns and higher rebates to participants.

Dictionary was fully redeemed in May 25th the acquisition of HK, exact Quarters here with the proceeds returning to us after the applicable lockup periods.

As at 31st, December 25, we have already recovered over 80% of the funds.

Now, let's look at our operating expenses. Our packs was up 5% in, 254 due to a 19 million, FCA, fine. And the recovery of lme, nickel, legal fees, 60 million in 2024.

Excluding these items and the charitable donations. Apex was up 2% due to high staff costs from play payload, payroll adjustments as well as higher it costs from inflationary increases.

Williams does the print cost management and successful execution of our strategy?

Looking ahead to 2026. We started a year strongly both in terms of turnover and IPO pipeline.

However, net investment income is expected to be affected by our revised margin collateral Arrangements. That's going to have the full year impact.

Hong Kong dollar rate movement and redemptions from our external portfolio.

Our strong financial performance and solid financial position. Have positioned us well to invest in the future, and we will continue to enhance and expand. Our multi-asset ecosystem to support the long-term development of Hong, Kong's, Capital markets, with that. I will now hand back to Bonnie for our business update in Outlook.

Thank you have. Now, when we look at the broader landscape ahead of us, we expect to maintain. And even accelerate the pace of strategic progress of the last year.

in 2025, we held the top Global position for IPO fundraising

and we are starting 2026 with a robust pipeline of Quality Companies from A diversity of high growth sectors from AI Robotics and new energy to healthcare and consumer.

Yes, of continuous enhancements to our listing framework. Put us in an unrivaled position to capture emerging trends.

Such as the pace of development and Innovation sectors, especially in the Chinese mainland.

At the same time, follow on issuance, in 2025 totaled, more than 500 billion, Hong Kong dollars, including 2 of the top. What the world's top, 5 ECM transactions demonstrating, the Deep liquidity here.

And in 2025, the secondary Market remained, very vibrant, fueled by renewed Global interests in Hong Kong, equities, Rising demand, for short, dated options and ongoing micro structure enhancements.

Headline ADT saw a 90%, year-on-year increase the ADV of the derivatives Market was up 7% while the ADT of the exchange traded products Market. Nearly doubled from a year earlier.

So stepping back a little bit, what is behind this momentum? Which we have been seeing since late 2024 and continue to see into 2026.

Perhaps, let's zoom out a bit and quickly look at the macro landscape.

And there we see 2 major forces at play.

The first is a broad trend of global Capital diversification.

We are living in a time of persistent uncertainty and Global Investors are starting to react to this in a very predictable way.

That is they have begun seeking out Diversified growth opportunities.

This is pushing Capital into Asia.

Then there is a second Force.

Cooling Capital into our markets.

And that is being driven by the evolution of China's development model.

The country's greater focus on Technology, Innovation was most dramatically demonstrated by the Deep seek moment earlier in 2025.

Following that at a kex, we welcome a wave of companies that are pushing the frontiers of global innovation.

We're also seeing the emergence of Chinese Mainland multinational companies that are expending internationally.

Almost half of the companies, we Welcome to our markets in 2025 were Mainland businesses with over 50% Revenue coming from international business.

and these and other companies attracted abroad and diverse representation of Cornerstone investors, including from North America, Europe the Middle East, and other Asian markets,

Okay, so with these structural changes, increasing the attractiveness of our Market. What are we going to do next?

Well, in the last decade, since the launch of stock connect, our efforts were focused on developing Capital Market connectivity to the Chinese mainland.

We developed a highly comprehensive product, ecosystem around our cash, equities Market.

This was supported by our Equity derivatives franchise.

And that attracted Global liquidity, diversity and vibrancy to our markets.

Going forward. We will continue to reinforce this unique connectivity to the Chinese mainland.

Advantage. As a global Exchange.

But the next decade will also be about strengthening the connectivity between the markets of the Chinese Mainland and other Asian economies.

Connecting the Region's Capital to its biggest opportunities. And then connecting Global Investors to an even bigger Regional pool of liquidity and growth potential.

More specifically with the growing appetite for China assets, we see an opportunity to expand what we offer.

Now what we've heard from an investors is that they want more tools to tap into Asia and China.

And as I touched on a moment ago, in the last decade, we have developed a comprehensive product ecosystem built around our cash equities and we have continuously developed this ecosystem in step with the evolving needs of Global Investors.

But now the investors are looking Beyond equities and so are we

Of course, we will continue to play to our strengths as the cash Market of Choice and the region.

Now in 2025, we further increase our connectivity with markets in the Middle East and Southeast Asia, adding to our growing network of partnership with exchange stock exchanges, as well as welcoming IPO listings from Brooke, both regions and establishing our new office in the Middle East.

Looking ahead, we will be leveraging this connectivity to creating a regional liquidity pool with a powerful Global gravitational pool.

We will also be exploring products that are tailored for clients in Asia and especially the growing retail class of investors here.

In the last year, especially in the southbound channel of stock connect was seen very vibrant activity from retail investors in this region. And yet, there is still vast growth potential there.

Etps are another area of the cash Market with strong potential.

We introduced 48 new ETP listings in 2025, including several Market first Innovations.

We will continue to expand and innovate our ETP product Suite cementing Hong Kong's position as Asia's leading ETP ecosystem.

But looking Beyond cash equities. We will also be making long-term investments in other asset classes.

As we enhance a multi-asset ecosystem.

This will provide a diverse range of Global Investors.

With all the tools they need to invest trade and manage risk in Asia.

We have already broken new growth in the fixed income space without investment in CMU Omni Clear.

Through our partnership with hkma. Will Will accelerate the development of Hong Kong's post trade? Securities infrastructure into a major Central Securities depository in the region.

Specifically, this will include the continued, commercialization of CMU and the pursuit of Business Development initiatives in areas such as the expansion of its investor CSD Services as it classes coverage and collateral Management Services.

Commodities.

That is another asset class with great potential.

I have already mentioned the approval of lme warehouses in Hong Kong, which is an important milestone in the physical Market connectivity.

as the complexity of the macro environment continues to drive a trend of capital diversification,

there will also be demand for products.

Such as for gold futures. For example, that gives investors broader accessibility to commodities

We will also continue to enhance, the tools. Investors need to manage risk in the region and we will be enhancing these tools across asset classes. Most notably and our derivatives ecosystem

In derivatives, we will continue to build on our success in product expansion.

Such as by growing our portfolio of monthly and weekly single stock options and by developing derivatives that reflect the Innovative companies that continue to list on our markets.

And running through all our asset classes will be our investment in adjacent capabilities, including the data and index business.

A highlight of this in 2025 was the launch of the hkex tech 100 index, our first Equity index focused exclusively on Hong Kong's technology sector.

These investments in adjacent capabilities will support our Core Business by driving Capital flows and liquidity.

But it's not just about products. We also must ensure that our markets are as accessible as possible if we want to fully capture the opportunity of global Capital diversification.

Over the years, our investment in technology and Market reform have helped us generate the liquidity that has been attracting high-quality issuers and investors to our markets.

Earlier, I highlighted some of the Strategic Market structure enhancement initiatives. We introduced in 2025

We will continue to Future proof our technology and operations in the years ahead.

To meet the greater demand for China assets and to optimize the conditions for cooperation, with our Market infrastructure Partners in the region.

From leading the market wide discussion on finding a suitable settlement cycle for Hong Kong.

To removing manual and pay manual and paper-based processes and from delivering on the modernization of our derivatives platform to adopting emerging Technologies such as Ai and our operations.

So wrapping up 2025 was a year of strong momentum progress and transformation, we had record results, we led the world in IPO fundraising and we had record volumes in our markets.

It was also a year in which we made strong progress, and delivering strategic initiatives.

Looking at the macro landscape while we see a lot of uncertainty. We also see great opportunities that we are, well, positioned to capture.

As we move forward into 2026, we will be focusing on enhancing our multi-asset ecosystem.

Doubling down on the strength of our equities markets, while developing other asset classes and we will be looking at ways to make it as frictionless as possible to invest trade and manage risk in our markets.

We are confident that our efforts and investments. In recent years, will ensure our business remains competitive in This Global landscape.

And will support Hong Kong and its role. As a global IFC facilitating, Capital flows in Asia.

And in China and in Asia more, broadly, and between this region and the rest of the world.

Thank you very much for listening, my team and I are now very happy to take your questions.

Thank you. Thank you for your sharing. We now take some of your questions. In fact you already some questions are waiting but operator, could you please give the audience the instruction, how to raise questions, either via webcast or audio? Thank you.

Thank you. If you wish to ask a question, you will need to press star 1, 1 on your telephone and wait for your name to be announced.

To withdraw your question. Please press star 1 1 again.

We will take the first question.

The question comes from Richard. Sue from Morgan Stanley. Please go ahead. Your line is open.

Thank you. Uh, congratulations on the very strong results. Uh, I got 2 questions. 1 is uh, Bonnie mentioned. Uh, there's also uh potential expansion of connectivities with the rest of the region like uh, Malaysia others could you collaborate with a little bit down back? You know, what are the initiatives? And how we can connect more closely with the rest of the region. Certainly, we're seeing a couple inflows to that region in general. Secondly is um, costs. Um, you know, there are a lot of initiatives. Uh, I I'm seeing very good, uh, costs discipline.

Uh, in the past a few years. Uh, but with, uh, all of these increasing initiatives, uh, does it mean the cost will need to grow with the revenue, uh, in line with the revenue a little bit more? Uh, or you know, there's more investments in in people uh, technology including uh, like AI, right? I mean, there's a lot of initiatives there. Um, I guess 2 questions from me. Thank you.

Uh, thank you. Thank you, Richard.

Um, so first of all, your first question, the rest of the region. Um, so first of all, why, why are we aspiring to do this? Um, is really because we see an increase in demand. Um, if you think, well, just to throw some some figures, um, January this year, um, you know, I've been reading some some some, some statistics

75% of the total APAC liquidity. If you met that's a huge figure and that gives us a belief that there is actually a lot of appetite from the rest of the region to connect with the opportunities in both the Hong Kong market as well as the Chinese Mainland market. And of course, you know that we have built the infrastructure already, uh, which is our franchise stock connect program, and it's not just stock, you know, they're it covers more asset classes so we really want to let um, take advantage of this, um, momentum and um, through I think, uh, a few things on the issuer side, you're aware that we are already doing. Um, oh, we have already been approached, uh, with more opportunities to do dual listings. And, uh, join hands with other exchanges to support fundraising needs of asian-based. Um, issuers, uh, last year for example, we saw

Companies, uh, from Thailand, from Indonesia, uh, and even farther away from Kazakhstan. Um, um, doing in in the case of the Kazakhstan company are doing a dual listing between us and aana,

That's on the issue, aside on the investor side, um, there is a very strong desire to build more connectivity and I'll ask Greg, um, to, uh, elaborate on that. Um, that could be through, um, you know, jointly or exploring cross listing, you know, um, Etc. But I I'll let him um, uh, supplement on that now, in terms of cost discipline, I think, you know, we, we have to responsibly, um, follow good cost discipline. I mean, that is just, I think a good, um, habit of doing business. But, uh, that doesn't mean we do not invest for the future. Um, as I mentioned in my presentation, we we see very good momentum. And the macro macro backdrop is very positive. Um, there is a strong desire to make use of our market and to really diversify, um,

Uh, and and that does not, that is not confined to the equities Market, which historically, you know, is our Core Business. And therefore, um, since we believe that this trend and this momentum will continue, I think it is,

Important for us to make the necessary and thoughtful investment into other areas. Be it fixed income. Be it currency, be it. Um, uh, Commodities because, um, our belief is that this desire uh, for from Global Investors to continue uh, to diversify is not going to Abate in any um, time soon. Alright. So uh, while we will continue to maintain good cost discipline, we will at the same time be very thoughtful about where and how we make investments where we think is going to yield us, the best opportunity set. But uh, let me pass over to Greg to talk about the regional uh aspirations we have.

Uh, thanks Bonnie. And um, so I think, first of all, right, um, the importance of of bonding it together with other uh, you know, Regional uh exchanges. Um, the the the the main reason is you you see that Global Investors are diversifying, right? And when they diversify, when they come to Asia, they're looking for various different assets. And if you want to keep their, um, you know, capital and investments in Asia, you need more assets and a wider base. So by bonding it together with, you know, other, um, you know, uh uh Regional uh exchanges and

Products and so forth. Um, it would basically help us to grow a bigger ecosystem. So, um, a few things, I mean, already mentioned, for example, like dual listing and so forth it will, you know, help to create a further liquidity into our equities markets, uh, as well as our peer, uh, markets, uh, uh, uh, Equity liquidity. But on top of that, what we will build and what we are linking up, um, on, uh, our derivatives products. Um, so what we will, uh, look into are offering, you know, uh, and both sides, you know, um, products that are referencing um, other exchanges exposures or others would offer, you know, our exposures in Dr, form and so forth. Uh, on top of that, um, you know, obviously ETF is an important instrument these days for investors. Um and 1 thing that it's key for us is facilitating, you know, 2-way flow. I mean historically, we've been, you know, facilitating quite a lot of Global Investors going into Chinese Mainland through the

A a strong growth in the southbound, connect side as well. And um with the ETF connect program, now expanding into uh allowing what we call 6040 allocation 60% allocation in Hong Kong stocks uh or connect stocks? Um, well 40% could be foreign um, uh, Equity exposures that gives us more opportunity to build products around that and allowing Chinese Mainland investors to enjoy offshore exposures. So all of these type of, um, you know, activities and um, um, type, you know, activities and, you know, product offering effectively allow us to build, you know, stronger liquidity around the region and keep the liquidity in Asia.

Thank you, Bonnie and Greg uh operator. Next question, please.

Thank you. Please stand by.

The question comes from Gary lamb from HSBC. Please go ahead. Your line is open.

Thank you. Um I finally have a question. Uh Ricky um appreciate your presentation particular on the strategy side. Uh the first question is related to the multi-asset diversification, particularly on the CMU Omni Clear. Now if we factor in like a 3 year forecast in our model, to what extent should we start to think about the revenue contribution from here? Um, how do you think about it in the way that you deploy sort of cause and investment should make reference to, like Global leading, um, uh, uh, Central Security?

Depository which are generating like, over a billion uh, Euro of uh profit every year or it basically should, you know, take longer noting. Of course participation. Uh, right now is about 20% sticks. Um, the second question, uh, perhaps is more on the global exchange competitive landscape noting that not only Hong Kong exchange, Global exchange, leading ones. Uh, indeed have underperformed their domestic Market. Um, I think part of the sort of Market where we has been both on the uh, threat coming from, uh, digital assets or maybe to um uh uh data uh, Market related, uh, data fees. Um, so in Hong Kong exchange, sort of, uh, context, where do you think, uh, the sort of like key area of, uh, defense reasons as to why our business model, can hardly be disrupted from those developments? Thank you.

Um, thank you. Um, Let Me Maybe, um, start with the first question, uh, and I will let Vanessa elaborate on it. The investment into CMU Omnicare, um, I think that's just 1 step in the overall, uh, strategic. But, but a very important, uh, strategic step, uh, in our, uh, overall Fick, uh, strategy. Now, the initial investment is not, um, a tremendous sum of money. Um, for the 20%

Mistake. We paid 455 million, uh, Hong Kong dollars.

But the potential which Vanessa will explain. Um, it's it's quite um, a big 1.

Um and and also, you know, will tie in with other things. Other ideas that we have in the Fick space. So while I, I think your question is quite specific in terms of asking, for sort of, you know, when we're going to see return and Etc. Uh, I I would, I would perhaps, you know, um, say that this this will be a, a longer term investment but, you know, uh, potentially going to yield a rather attractive, uh, return. Now, before I hand over to Vanessa maybe, um, to your second question, about generally of how exchanges, uh, around the world have been performing, and I guess you ask uh, specific uh, specifically shreds from other sort of newer emerging exchanges such as, you know, those focusing on digital or virtual assets. I I I I I feel that, you know, first of all, um, we are in a

More advantageous position compared to some of our peers.

Now, if you think about, you know, the simply on the primary Market side, right? Uh we were number 1 fundraising, uh, platform last year, we have a very solid pipeline of over 400. IPOs, I mentioned earlier that the desire from investors around the world to increase their exposure. To China assets is increasing, and I'm not seeing it abating in any short term, and then therefore, given that we have, the Kinect franchise, which is our unique selling point. I, I think that does set us apart from

The more traditional equities, uh, exchanges in the world and and that's something that we're very grateful about. Um, now certainly, there are other asset classes.

Um, you know, such as what you suggested virtual, uh, assets or digital assets. That's a totally different playground altogether. I think for now, we want to focus on what we believe we are most uh, or we are the the best position to do starting with equities, uh, derivatives, um, into fixed income Commodities, which, of course, we already have had, um, a very important asset in the form of lme and really focus on developing those instead of trying to sort of cover all grounds. I think that's how we will probably, um,

[Company Representative] (Hong Kong Exchanges & Clearing Limited): above. Now, certainly there are other asset classes, you know, such as what you suggested, virtual assets or digital assets. That's a totally different playground altogether. I think for now, we wanna focus on what we believe we are most, or we are the best positioned to do, starting with equities, derivatives, into fixed income commodities, which of course, we already have had a very important asset in the form of LME, and really focus on developing those instead of trying to sort of cover all grounds. I think that's how we will probably, sort of, you know, compete the best. We will stick to that as the guiding principle in terms of setting out our future strategic imperatives. Perhaps at...

Bonnie Chan: above. Now, certainly there are other asset classes, you know, such as what you suggested, virtual assets or digital assets. That's a totally different playground altogether. I think for now, we wanna focus on what we believe we are most, or we are the best positioned to do, starting with equities, derivatives, into fixed income commodities, which of course, we already have had a very important asset in the form of LME, and really focus on developing those instead of trying to sort of cover all grounds. I think that's how we will probably, sort of, you know, compete the best. We will stick to that as the guiding principle in terms of setting out our future strategic imperatives. Perhaps at...

You know such as what you suggest that virtual assets or digital assets, that's a totally different playground altogether I think for now we want to focus on what we believe we are most oh do we are the best positioned to do starting with equities are there.

Um, sort of, you know, compete the best uh and and we will stick to that as the guiding principle in terms of um setting out our future, strategic, um imperatives. But perhaps at on that note, let me pass over to Vanessa to give you a little bit more about our thinking around. Um, first of all, the CMU investment but more broadly where we are headed on our ficc journey.

Riveted.

Into fixed income commodities, which of course, we already have had a very important asset in the form of <unk> and really focus on developing those instead of trying to sort of cover all ground I think that's how we will probably.

So you know compete the best and we will stick to that as the guiding principle in terms of setting out our future strategic imperatives.

Comparisons, but perhaps.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): On that note, let me pass over to Vanessa to give you a little bit more about our thinking around, first of all, the CMU investment, but more broadly, where we are headed on our FICC journey.

Bonnie Chan: On that note, let me pass over to Vanessa to give you a little bit more about our thinking around, first of all, the CMU investment, but more broadly, where we are headed on our FICC journey.

On that note, let me pass over to Vanessa to give you a little bit more about I'm thinking owned first of all the CMU investment, but more broadly where we are headed on our F. ICC journey. Thank you Bonnie Ah. Thanks scary for your question.

Vanessa: Thank you, Bonnie. Thanks, Gary, for your question. If I answer very specifically, on CMU, it's a 20% equity accounting treatment. In the scheme of things, the contribution to our group results will be financially not so material, given the size of it in the coming years. The way we should be thinking about it, both strategically and financially over the coming years, is in terms of this whole FIC ecosystem that Bonnie has been describing. Gary, you know our business pretty well.

Vanessa Lau: Thank you, Bonnie. Thanks, Gary, for your question. If I answer very specifically, on CMU, it's a 20% equity accounting treatment. In the scheme of things, the contribution to our group results will be financially not so material, given the size of it in the coming years. The way we should be thinking about it, both strategically and financially over the coming years, is in terms of this whole FIC ecosystem that Bonnie has been describing. Gary, you know our business pretty well.

If I answer very specifically.

Thank you, Bonnie. Uh, thanks Gary for your question. Um, if I answer very specifically, um, on CMU it's, uh, 20% Equity accounting, um, uh, treatment and in the scheme of things, uh, it will be uh, the contribution to our group results will be financially, not so material, given the size of it in the coming years. Um, but what the way we should be thinking about it both strategically and financially over the coming years is in terms of this whole Fick ecosystem that Bonnie has been, uh, describing. Um, so Gary you, you know, our business pretty well. So the way to look at it is, um, the pieces that we already have, uh, the Strategic pieces that we invested in, in the last, uh, numbers of years, like Bond connect, like swap connect like, OTC clear. Um, and products such as interest rates swaps, um, and uh, cross current

On the CMU, it's a 20% equity accounting.

Currency swaps and I could go on. Um,

Treatment and in the scheme of things it will be the contribution to our group results will be financially not so material given the size of it in the coming years.

But the way, we should be thinking about it both strategically and financially over the coming years in terms of this whole ecosystem that Bonnie has been describing.

each of these is an important part of the puzzle that we're trying to pull together um into an Fick ecosystem, in the past, uh, admittedly it was more like, uh, having a few products to try out and then having a few Partnerships. But now the way we look at it in the coming years is the whole Fick ecosystem. And what I mean by that is starting from Bond issuance.

So Gary you know our business pretty well so the way to look at it is.

Vanessa: The way to look at it is, the pieces that we already have, the strategic pieces that we invested in in the last numbers of years, like Bond Connect, like Swap Connect, like OTC Clear, and products such as interest rate swaps, and cross-currency swaps, and I could go on. Each of these is an important part of the puzzle that we're trying to pull together into an FIC ecosystem. In the past, basically, it was more like having a few products to try out and then having a few partnerships. Now, the way we look at it in the coming years is the whole FIC ecosystem.

Vanessa Lau: The way to look at it is, the pieces that we already have, the strategic pieces that we invested in in the last numbers of years, like Bond Connect, like Swap Connect, like OTC Clear, and products such as interest rate swaps, and cross-currency swaps, and I could go on. Each of these is an important part of the puzzle that we're trying to pull together into an FIC ecosystem. In the past, basically, it was more like having a few products to try out and then having a few partnerships. Now, the way we look at it in the coming years is the whole FIC ecosystem.

The pieces that we already have the strategic pieces that we invested in the last numbers of years like bond connect like swap connect like OTC clear and products such as interest rate swaps and cross currency swaps and I could go on.

Each of these is an important part of the puzzle that we're trying to pull together.

Two and F I see ecosystem in the past literally it was more like having a few products to try out and then having a few partnerships, but now the way we look at it in the coming years is the whole <unk> ecosystem and what I mean by that is starting from bonds issuance and bond market.

Vanessa: What I mean by that is starting from bond issuance and bond marketing, to trading, to the repo market and having a yield curve, and then to clearing and settlement, depository and custodian services. Now, comparing what I just said, this ecosystem, to what we currently have, we have, you know, some good pieces, and the latest addition to the family is CMU. Our 20% strategic stake is indeed very important because without that, then we wouldn't have our piece of the puzzle in terms of depository and custodian services, which is critical to Hong Kong having a comprehensive and competitive ecosystem. Without CMU, we would never be able to develop in Hong Kong the ICSD or the CSD that we currently are working on.

Vanessa Lau: What I mean by that is starting from bond issuance and bond marketing, to trading, to the repo market and having a yield curve, and then to clearing and settlement, depository and custodian services. Now, comparing what I just said, this ecosystem, to what we currently have, we have, you know, some good pieces, and the latest addition to the family is CMU. Our 20% strategic stake is indeed very important because without that, then we wouldn't have our piece of the puzzle in terms of depository and custodian services, which is critical to Hong Kong having a comprehensive and competitive ecosystem. Without CMU, we would never be able to develop in Hong Kong the ICSD or the CSD that we currently are working on.

Thing two trading to the repo market and having a yield curve and then to clearing and settlement depository and custodians services now.

And, uh, Bond marketing to trading to the repo market and having a yield curve and then to clearing and settlement depository and custodian Services. Now, um, comparing what I just said this ecosystem to what we currently have. We have, you know, some good pieces and the latest edition to the family is CMU. So our 20% strategic stake is indeed very important because, um, without that, then we wouldn't have our piece of the puzzle in terms of depository, and custodian Services, which, uh, is critical to Hong Kong having a comprehensive and competitive, um, ecosystem. And without CMU, we would never be able to develop in Hong. Kong the, uh, the icsd or the CSD that we, we, um, that we currently, uh, are, are working on, and in terms of CMU itself, it's also gone through its uh, own growth journey and it is not insignificant. So, right?

Comparing what I just said this ecosystem to what we currently have we have some good pieces and the latest addition to the family is C have you. So our 20% strategic stake is indeed very important because.

Without that then we wouldn't have our piece of the puzzle in terms of depository and custodian services, which is critical to Hong Kong, having a comprehensive and competitive ecosystem and without C. M. You, we would never be able to develop in Hong Kong.

Right now assets under custody has already reached 5 trillion Hong Kong dollars. Um, clearly boosted by the, um, huge acceleration in cgb issuances, uh, China government bonds, but they're also corporate bonds that are starting that also to be deposited into CMU. So this partnership with the hkma and supported by our regulator bsfc, totally aligned with the road map. That the 2 registers in September last year.

The I C. S. D. C. S. D that we are that we currently are working on and in terms of Sam you itself. It's also gone through its own growth journey and it is not insignificant. So right now assets under custody has already reached five trillion Hong Kong dollars.

Vanessa: In terms of CMU itself, it is also gone through its own growth journey, and it is not insignificant. Right now, assets under custody has already reached 5 trillion HKD. Clearly boosted by the huge acceleration in CGB issuances, China government bonds. There are also corporate bonds that are starting also to be deposited into CMU. This partnership with the HKMA and supported by our regulator, the SFC, totally aligned with the roadmap that the two regulators published for FIC in September 2023. You can just see how, you know, in a way, the stars are aligning. All parties are working together towards building this ecosystem, not just for HKEX's strategy, but more importantly, for Hong Kong as the FIC and the ICSD center in the coming years.

Vanessa Lau: In terms of CMU itself, it is also gone through its own growth journey, and it is not insignificant. Right now, assets under custody has already reached 5 trillion HKD. Clearly boosted by the huge acceleration in CGB issuances, China government bonds. There are also corporate bonds that are starting also to be deposited into CMU. This partnership with the HKMA and supported by our regulator, the SFC, totally aligned with the roadmap that the two regulators published for FIC in September 2023. You can just see how, you know, in a way, the stars are aligning. All parties are working together towards building this ecosystem, not just for HKEX's strategy, but more importantly, for Hong Kong as the FIC and the ICSD center in the coming years.

Clearly boosted by the.

Huge acceleration in CGP issuances, China government bonds, but there are also corporate bonds. The authority. That's also to be deposited into C. M. U. So this partnership with the HMA and supported by our regulator. The S. S. C totally aligned with the roadmap that the two regulators published for FSC in Sept.

And something, uh, very significant for Hong Kong.

The last year.

Just see how you know in a way the stars are aligning all parties are working together that's what's building. This ecosystem not just for HVAC E exit strategy, but more importantly for Hong Kong.

Thank you, Bonnie and Vanessa for the very comprehensive response. Next question is coming from harsh me from JP Morgan. I'll just read it here. There are actually 3 questions from harsh from quite different perspective. Question number 1 are you looking at the prediction Market launch or investment if so what would be the regulation and operational? Considerations around the market innovation?

Question number 2, how do you rate the probability of IPO pipeline converting in cost of this year?

The C and the Ics the center in the coming years. So this is how we think about it. So when we think about the next three years. The next five years think about the whole ecosystem of F. I see we have some pieces we have some small smaller pieces that we're bolting on now, but hugely strategic and something very.

Vanessa: This is how we think about it. When I think about the next three years, the next five years, think about the whole ecosystem of FIC. We have some pieces. We have some smaller pieces that we're bolting on now, but hugely strategic and something very significant for Hong Kong.

Vanessa Lau: This is how we think about it. When I think about the next three years, the next five years, think about the whole ecosystem of FIC. We have some pieces. We have some smaller pieces that we're bolting on now, but hugely strategic and something very significant for Hong Kong.

Question number 3, could you please just share the timeline of the southbound? I mean be counter and any key issues involved.

Significant fall of Hong Kong.

Bonnie: Thank you, Bonnie and Vanessa, for the very comprehensive response. Next question is coming from Harsh Modi, from JP Morgan. I'll just read it here. There are actually 3 questions from Harsh from quite different perspective. Question number 1: Are you looking at the prediction market launch or investment? If so, what would be the regulatory and operational considerations around the market innovation? Question number 2: How do you rate the probability of IPO pipeline converting in course of this year? Question number 3: Could you please just share the timeline on the southbound Renminbi counter and any key issues involved?

Operator: Thank you, Bonnie and Vanessa, for the very comprehensive response. Next question is coming from Harsh Modi, from JP Morgan. I'll just read it here. There are actually 3 questions from Harsh from quite different perspective. Question number 1: Are you looking at the prediction market launch or investment? If so, what would be the regulatory and operational considerations around the market innovation? Question number 2: How do you rate the probability of IPO pipeline converting in course of this year? Question number 3: Could you please just share the timeline on the southbound Renminbi counter and any key issues involved?

Thank you Bonnie and Vanessa for the for our comprehensive response next question is coming from harsh multi from J P. Morgan I was just ready here actually for your questions from harsh from quite different perspective question number one.

Looking at the prediction market launch or investment.

So what would be the recognition.

Operational considerations around the market innovation question number two how do you raise the probability of IPO pipeline converts and close off this year.

Question number for you could you. Please just shared a timeline other self-binder then becomes of any key issues involved.

Um, thank you, uh, for the question harsh. Um, I'll answer them in time. The first question is prediction Market instruments. I believe, uh, short answer to your question is. No, we're not, uh, looking to offer that. Um, as I mentioned earlier, we prefer to focus on the building, a multi asset ecosystem, and we've already brought me, um, mentioned that we want to replicate the success of our Equity business into other areas, such as fixed income currency and commodities. Uh, so for now that will be the focus. Um, second question IPO conversion rate. Um, I guess that's not an easy question to answer. I don't have the crystal ball, but I do want to say that. Um, I mean, first of all,

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Thank you for the question, Harsh. I'll answer them in turn. The first question is prediction market instruments, I believe. Short answer to your question is no, we're not looking to offer that. As I mentioned earlier, we prefer to focus on the building a multi-asset ecosystem, and we've already broadly mentioned that we want to replicate the success of our equities business into other areas, such as fixed income, currency, and commodities. For now, that will be the focus. Second question, IPO conversion rate. I guess that's not an easy question to answer. I don't have the crystal ball, but I do want to say that, I mean, first of all, the pipeline looks very, very healthy. When I say healthy, it's not just, you know, how many we have.

Bonnie Chan: Thank you for the question, Harsh. I'll answer them in turn. The first question is prediction market instruments, I believe. Short answer to your question is no, we're not looking to offer that. As I mentioned earlier, we prefer to focus on the building a multi-asset ecosystem, and we've already broadly mentioned that we want to replicate the success of our equities business into other areas, such as fixed income, currency, and commodities. For now, that will be the focus. Second question, IPO conversion rate. I guess that's not an easy question to answer. I don't have the crystal ball, but I do want to say that, I mean, first of all, the pipeline looks very, very healthy. When I say healthy, it's not just, you know, how many we have.

Thank you for the question harsh.

I'll answer them into the first question is prediction market instruments I believe.

Short answer to your question is no we're not looking to offer that as I mentioned earlier, we prefer to focus on the building a multi asset ecosystem and we've already brought me.

<unk> mentioned that we want to replicate the success of our equities business into other areas such as fixed income currency and commodities.

Of all the pipeline looks very, very healthy. And when I say healthy it's not just um, you know, how many we have. Um, it is really the diversity and the quality that I see. Um, now since the beginning of the year we've already completed 24 IP raising over 10 billion US Dollars and you compare that with last year's figure which was about 37.5 billion US Dollars raised. We have essentially covered more than 25% in 6 weeks, actually. Um,

So for now that will be the focus.

Second question IPO conversion rate.

I guess, that's not an easy question to answer I don't have the crystal ball, but I do want to say that I mean first of all the pipeline looks very very healthy and when I say healthy it's not just.

How many we have.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): It is really the diversity and the quality that I see. Now, since the beginning of the year, we've already completed 24 IPOs, raising over $10 billion. You compare that with last year's figure, which was about $37.5 billion raised, we have essentially covered more than 25% in six weeks, actually. The more exciting thing is that the demand is huge. I mean, if you look at the ones which we have already completed, all of them have performed quite well in the aftermarket. I think maybe except for one, which has dropped slightly, everyone is staying above IPO price.

Bonnie Chan: It is really the diversity and the quality that I see. Now, since the beginning of the year, we've already completed 24 IPOs, raising over $10 billion. You compare that with last year's figure, which was about $37.5 billion raised, we have essentially covered more than 25% in six weeks, actually. The more exciting thing is that the demand is huge. I mean, if you look at the ones which we have already completed, all of them have performed quite well in the aftermarket. I think maybe except for one, which has dropped slightly, everyone is staying above IPO price.

It is really the diversity and the quality that I see allison's the beginning of the year. We've already completed 24, ipos raising over 10 billion U S dollars.

But the more exciting thing is that the demand is huge. I mean, if you look at the ones which we have already completed, all of them, have performed quite um, well uh, in the aftermarket, uh, I think maybe except for 1, which is cropped slightly. Everyone has uh, it's it's staying above IPO price and therefore, you know, if that demand continues to stay strong, I really think that we will end up. Um, we will end up with another very, uh, uh, solid year in terms of, uh, IPOs

And you compare that with last year's figure, which was about 37 5 billion U S. Dollar race, we have essentially cover more than 25% and six weeks actually.

But the more exciting thing is that the demand is huge I mean, if you look at the ones, which we have already completed all of them have performed quite well.

Well in the after market I think maybe except for one which is slightly everyone has its staying above IPO price and therefore.

Um, sorry the third. Yeah, third question is southbound. Um, okay, so if you, uh, have paid attention to the budget speech, that the fs, the financial secretary, uh, has put up yesterday, there is a mention of so far RB counter and I think the wording he used was that he will be looking to accelerate the implementation. So for now, that's what I can share but suffice to say that that's still being progressed and as soon as we have news to share, we will do it ASAP.

Thank you, Bonnie. Um, next question, please.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Therefore, you know, if that demand continues to stay strong, I really think that we will end up with another very solid year in terms of IPOs. Sorry.

Bonnie Chan: Therefore, you know, if that demand continues to stay strong, I really think that we will end up with another very solid year in terms of IPOs. Sorry.

Thank you. Please stand by.

Demand continues to stay strong I really think that we will end up we wound up with another very a solid year in terms of our ipos.

And the question comes from the line of Thomas Wong from Goldman Sachs. Please go ahead. Your line is open.

I'm sorry, yeah.

Gary: Southbound.

Vanessa Lau: Southbound.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Yeah, third question is southbound. Okay, if you have paid attention to the budget speech that the FS, the Financial Secretary, has put out yesterday, there is a mention of southbound RMB counter. I think the wording he used was that he will be looking to accelerate the implementation. For now, that's what I can share, but suffice to say that that's still being progressed. As soon as we have news to share, we will do it ASAP.

Bonnie Chan: Yeah, third question is southbound. Okay, if you have paid attention to the budget speech that the FS, the Financial Secretary, has put out yesterday, there is a mention of southbound RMB counter. I think the wording he used was that he will be looking to accelerate the implementation. For now, that's what I can share, but suffice to say that that's still being progressed. As soon as we have news to share, we will do it ASAP.

Third question is southbound.

Okay. So if you have paid attention to the budget speech that the F. S. The financial Secretary has put out yesterday. There was some mention of soap RMB counsel and I think the wording you used was that he will be looking to accelerate the implementation. So for now that's what I can share but.

Suffice to say that that's still being progressed and as soon as we have news to share we will do it a S. A P.

Uh, thank you. Um, congrats on the result. Um, a couple of question from from me. Uh, I think for just 1 is just kind of following up our previous question now, on calls and expense. Um, quite uh, uh, uh, good number only 2% growth equals to take our Equity, go fees given. Given you're doing all, uh, the implementing all this initiative, just looking for how you thinking about, uh, that expense could go looking maybe for the next 3 to 5 years. How we looking at, maybe a kind of mix many single digit number.

Bonnie: Thank you, Bonnie. Next question, please.

Vanessa Lau: Thank you, Bonnie. Next question, please.

Thank you Paul next question please.

Operator: Thank you. Please stand by. The question comes from the line of Thomas Wine from Goldman Sachs. Please go ahead. Your line is open.

Thank you please standby.

So the question comes from the line of Thomas Wang from Goldman Sachs. Please go ahead. Your line is open.

Gary: Thank you. Congrats on the results. Couple questions from me. I think first, just one is just kind of following up a previous question now on cost and expense. Quite a good number, only 2% growth once you take out legal fees, given you're doing all implementing all this initiative. Just looking for how you're thinking about that expense take, looking maybe for the next 3 to 5 years. Are we looking at maybe economic mid-single digit number? Or something that could be even higher than that. Oh, and secondly, as Bonnie, kind of you mentioned on the initiative that talked about yesterday, at the budget meeting. I think I'm not...

Thomas Wang: Thank you. Congrats on the results. Couple questions from me. I think first, just one is just kind of following up a previous question now on cost and expense. Quite a good number, only 2% growth once you take out legal fees, given you're doing all implementing all this initiative. Just looking for how you're thinking about that expense take, looking maybe for the next 3 to 5 years. Are we looking at maybe economic mid-single digit number? Or something that could be even higher than that. Oh, and secondly, as Bonnie, kind of you mentioned on the initiative that talked about yesterday, at the budget meeting. I think I'm not...

Thank you.

Congrats on the result.

Couple of Crusher problem for me I think for just one portfolio above previous Christian I'll call. It an expense.

Art.

Um, or or something that that could be, you know, you know, higher than that. Uh, or and secondly, um, as phony can you mentioned on the initiative that talked about yesterday at the budget meeting? Um, I think I'm not uh 1 thing mentioned is the expert side launch of Chinese government Bond. Futures in Hong Kong, um, just wondering how how important is this uh, in your in your fig. Um uh, sort of setup. And do you have any visibility on that? Um, thank

Good number only 2% grocery clerks, who take all your legal fees given given youre doing.

So you can prevent the oldest initiative.

<unk> for how you're thinking about.

Doug expense cake or maybe pulling back three to five years, how we look at maybe economics mid single digit number.

Or something that that could be even higher than that.

And secondly.

Any color you mentioned all the initiatives I talked about yesterday.

At the budget meeting.

I think I'm not sure.

Gary: One thing mentioned is the expedited launch of Chinese government bond futures in Hong Kong. Just wondering how important is this in your fee sort of setup, and do you have any visibility on that? Thank you.

Vanessa Lau: One thing mentioned is the expedited launch of Chinese government bond futures in Hong Kong. Just wondering how important is this in your fee sort of setup, and do you have any visibility on that? Thank you.

One thing motion that has the expertise side launch of Chinese government bond futures in Hong Kong.

Just wondering how important it is.

And you'll see a sort.

So last setup and.

Do you have any visibility on that.

A mention of the t-bond Futures, uh, which is in, in the works. Uh, and I think that was mentioned together actually, with the southbound R&B counter, uh, suffice to say that obviously, this is something we understand the market has a strong demand for. Uh we have been in close discussion with our Chinese, Mainland Partners, uh and work is very Advanced. So as soon as we are in a position to uh announced further, we will let you know. But um Herbert uh would you like to um answer the question on cost?

Thanks.

Yeah.

Okay, so on Opex growth. Uh, so

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Thank you for your question, Thomas. Perhaps on your first question about, I'll let Herbert answer. Your second question, sorry, the line wasn't very clear, but I heard that you were referring to the budget speech, and there was also a mention of the T-bond futures-

Bonnie Chan: Thank you for your question, Thomas. Perhaps on your first question about, I'll let Herbert answer. Your second question, sorry, the line wasn't very clear, but I heard that you were referring to the budget speech, and there was also a mention of the T-bond futures-

Thank you for your question Thomas perhaps on your first question about I'll, let Herbert answer.

But your second question.

Sorry, the line wasn't very clear, but I I I heard that you were referring to the budget speech and there was also.

I mentioned of the people in futures.

Gary: Yes.

Vanessa Lau: Yes.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): which is in the works. I think that was mentioned together, actually, with the southbound RMB counter. Suffice to say that obviously this is something we understand the market has a strong demand for. We have been in close discussion with our Chinese mainland partners, and work is very advanced. As soon as we are in a position to announce further, we will let you know. Herbert, would you like to-

Bonnie Chan: which is in the works. I think that was mentioned together, actually, with the southbound RMB counter. Suffice to say that obviously this is something we understand the market has a strong demand for. We have been in close discussion with our Chinese mainland partners, and work is very advanced. As soon as we are in a position to announce further, we will let you know. Herbert, would you like to-

Which is in the works and I think that was mentioned to get that actually with the self RMB counter.

Suffice to say that obviously this is something we understand the market has a strong demand pool, we have been in close discussion with our Chinese mainland partners.

And work is very advanced so as soon as we are in a position to.

Announced further we will let you know but oh.

Would you like to.

Herbert: Okay. Sure.

Vanessa Lau: Okay. Sure.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Answer the question on cost?

Bonnie Chan: Answer the question on cost?

The headline number is 5% growth. If you were to adjust for the uh nickel related costs in terms of uh FCA uh payments as well as the recovery of legal fees. Uh, it uh, went down to 2% as you just, uh, quoted now. Um, so when I step back and look at the numbers and, and I was thinking, so, if you were really to do a apple to Apple comparison, uh, and there are certain, uh, like, uh, non-recurrent items also in the Opex, if I were to take them out, uh, such as, you know, the, uh, early investing or early investing of the LTI of, uh, staff, um, moving those uh, non-recurrent items aside um, or 1 of items, in nature aside.

Question on costs, Okay. So on Opex growth.

Herbert: Okay. So on OpEx growth, the headline number is 5% growth. If you were to adjust for the nickel-related costs in terms of FCA payments, as well as the recovery of legal fees, it went down to 2%, as you just quoted. Now, so when I step back and look at the numbers and I was thinking, so if we were really to do an apple to apple comparison, and there are certain, like, non-recurring items also in the OpEx, if I were to take them out, such as, you know, the early investing or early vesting of the LTIs of staff. Moving those non-recurring items aside, or one-off items in nature aside, we are still looking at about 5% growth for 2025.

Vanessa Lau: Okay. So on OpEx growth, the headline number is 5% growth. If you were to adjust for the nickel-related costs in terms of FCA payments, as well as the recovery of legal fees, it went down to 2%, as you just quoted. Now, so when I step back and look at the numbers and I was thinking, so if we were really to do an apple to apple comparison, and there are certain, like, non-recurring items also in the OpEx, if I were to take them out, such as, you know, the early investing or early vesting of the LTIs of staff. Moving those non-recurring items aside, or one-off items in nature aside, we are still looking at about 5% growth for 2025.

No.

The headline number is 5% growth if you were to adjust for the Nicole related costs in terms of FCA payment.

Uh, we are still looking at about 5% growth for 2025. So, back to the headline number, uh, I think, um, this is a

Payments as well as the recovery of legal fees.

Went down to 2% that you just quoted.

No.

So when I step back and look at the numbers.

I was thinking so if we were really to do a apple to Apple comparison.

And there are certain.

Nonrecurring items also in the Opex, if I were to take them out.

Such as the.

Early investing early vesting of the <unk> of our staff.

Moving dose.

Nonrecurring items aside.

One off items in nature side.

We are still looking at about 5% growth for 2025, so back to the headline number.

Herbert: Back to the headline number. I think this is a good number, reflecting good cost discipline, in terms of how we control staff costs. I think we have a very stringent process in controlling headcounts, and it will require, you know, top executives to sign off on all the headcount increases. For 2025, we are looking at a headcount number that's pretty much flattish in numbers. That's the OpEx situation we're looking at. Historically, I think for the past 10 years, the CAGR in OpEx is something around 7%. I think last year we're doing well at 5%. Going forward, I think you heard a lot of initiatives that Bonnie mentioned, and Greg, and Vanessa mentioned.

Vanessa Lau: Back to the headline number. I think this is a good number, reflecting good cost discipline, in terms of how we control staff costs. I think we have a very stringent process in controlling headcounts, and it will require, you know, top executives to sign off on all the headcount increases. For 2025, we are looking at a headcount number that's pretty much flattish in numbers. That's the OpEx situation we're looking at. Historically, I think for the past 10 years, the CAGR in OpEx is something around 7%. I think last year we're doing well at 5%. Going forward, I think you heard a lot of initiatives that Bonnie mentioned, and Greg, and Vanessa mentioned.

I think.

This is a good number.

Printing good cost discipline.

Good number. Um, reflecting uh good cost discipline uh in terms of how we control uh staff costs. Uh I think we have a very stringent process uh in contouring accounts and and it will require um you know top Executives to sign off on on all the account increases. So uh for 2025, we are looking at the head count number. That's pretty much flattish uh, in numbers. Uh, so that that's your pet situation. Uh, we're looking at historically I think for the past 10 years, uh, the uh, Kerr in Opex is something around 7%. Uh, I think, uh, last year we are doing well at 5%. Uh, going forward. I think, uh, you you heard a lot of initiatives that Bonnie mentioned and, uh, rag and and, and, and Vanessa mentioned, uh, so we will have to invest into the future. So that's something that we

In terms of how we control.

Staff costs.

We have a very stringent process.

We also have to uh uh uh look after not just on the side of uh pure cost discipline.

In controlling head count in and it will require.

Thank you, Bonnie and Herbert. Uh, operator. Next question on the line, please.

Top executives to sign off on all of the head count increases so far.

Thank you.

For 2025, we are looking at the head count number that's pretty much flattish.

Your next question comes from the line of Betty. Lee from Jeffrey's, please go ahead. Your line is open.

In numbers so that.

That's your Opex situation.

We're looking at historically I think for the past 10 years.

The cake or in Opex is something around 7%.

I think.

Last year, we're doing well at 5%.

Going forward I think you heard a lot of initiatives that Bonnie mentioned and rack.

<unk> and <unk> and Vanessa mentioned.

Thank you so much my management for the opportunity for the question, and congrats on the short set of results. Uh, so my question, uh, regarding the, uh, I IPO pipeline. I understand, um, in, uh, also referring to the budget plan, uh, 2026 to 27, understand there might be a revision of the um, IPO listing, uh, rules coming up. So I just wonder uh, if there's anybody tell her for us to share,

Herbert: We will have to invest into the future. That's something that we also have to look after, not just on the side of pure cost discipline.

Vanessa Lau: We will have to invest into the future. That's something that we also have to look after, not just on the side of pure cost discipline.

So we will have to invest into the future. So that's something that we also have two.

Yes, thank you Betty. Um, the question is, uh,

Look after not just on the side of a pure cost discipline.

Bonnie: Thank you, Bonnie and Herbert. Operator, next question on the line, please.

Vanessa Lau: Thank you, Bonnie and Herbert. Operator, next question on the line, please.

Thank you Paul and you inhibit operator next question on the line. Please.

Operator: Thank you. Your next question comes from the line of Betty Li from Jefferies. Please go ahead. Your line is open.

Thank you.

Your next question comes from the line of Betsy Lee from Jefferies. Please go ahead. Your line is open.

Yeah.

Betty Li: Thank you so much, management, for the opportunity for the question and congrats on the strong set of results. My question regarding the IPO pipeline, I understand, also referring to the budget plan, 2026 to 2027, understand there might be a revision of the IPO listing rules coming up. I just wonder if there's any further color for us to share?

Thank you so much management for the.

The question and congrats on the strong set up about.

So my question.

I didn't really.

Our IPO pipeline I understand.

<unk> also referring to the budget plan.

What to expect in terms of, uh, the work that we're doing to uh, enhance our IPO, uh, framework. Uh, actually the the, the way that we are thinking about it. Um, multifold, but you can broadly put that under the umbrella of increasing competitiveness. That's what we have. Um, actually signal to the market that we're going to do, you would also have found, uh, some reference to that, in the budget speech, uh, from the financial secretary, um, yesterday,

Thanks to a 27 understand there might be an elevation of the IPO.

Today. So, um, first of all,

IPO listing.

Tell me up so I, just wonder if there's any color or thoughts to share.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Yes, thank you, Betty. The question is what to expect in terms of the work that we're doing to enhance our IPO framework. Actually, the way that we are thinking about it, multifold, but you can broadly put that under the umbrella of increasing competitiveness. That's what we have actually signaled to the market that we're going to do. You would also have found some reference to that in the budget speech from the financial secretary yesterday. First of all, I think in terms of eligibility requirements, we did see that over the last few years, as a result of some of the reforms that we've done, for example, the introduction of Chapter 18A on biotechnology companies listing, 18C on specialist technology listings.

Bonnie Chan: Yes, thank you, Betty. The question is what to expect in terms of the work that we're doing to enhance our IPO framework. Actually, the way that we are thinking about it, multifold, but you can broadly put that under the umbrella of increasing competitiveness. That's what we have actually signaled to the market that we're going to do. You would also have found some reference to that in the budget speech from the financial secretary yesterday. First of all, I think in terms of eligibility requirements, we did see that over the last few years, as a result of some of the reforms that we've done, for example, the introduction of Chapter 18A on biotechnology companies listing, 18C on specialist technology listings.

Yes, Thank you Betsy the.

The question is.

What to expect.

In terms of the work that we're doing to enhance our IPO a framework.

Actually the though the way that we're thinking about it multifold, but you can broadly put that under the umbrella of increasing competitiveness that's.

What we have actually signaled to the market that we're going to do you would also have found some reference to that in the budget speech from the financial Secretary yesterday.

I think, in terms of eligibility requirements, we did see that, uh, over the last few years, um, as a result of some of the reforms that we've done, for example, the introduction of chapter 18a, on biotechnology companies listing, uh, 18c, on specialist technology, um, listings that has brought a lot of very positive, um, results to, um, both the number of IPOs and fundraising, uh, on our, uh, platform as well. As you know, they they, the, the these successful IPOs will bring additional liquidity into the secondary markets.

So.

First of all I think in terms of eligibility requirements, we did see that over the last few years.

Uh we are doing all these new chapters in response to demand from issuers and investors. Um they're looking for more bespoke chapters and therefore I would um share with you that um we will continue the Journey of making sure that our listing regime stay fit for purpose.

As a result of some of the reforms that we've done for example, the introduction of chapter 18, Aon biotechnology companies lifting our 18th C. On specialist technology listings that has brought a lot of very positive.

another category which was, you know, sort of previewed by the fs yesterday was um, potentially um revisiting the wvr regime, we can voting rights

[Company Representative] (Hong Kong Exchanges & Clearing Limited): That has brought a lot of very positive results to both the number of IPOs and fundraising on our platform, as well as, you know, these successful IPOs will bring additional liquidity into the secondary markets. More importantly, we are doing all these new chapters as in response to demand from issuers and investors. They are looking for more bespoke chapters, and therefore, I would share with you that we will continue the journey of making sure that our listing regime stay fit for purpose. Another category which was, you know, sort of previewed by the FS yesterday was potentially revisiting the WVR regime, weighted voting rights, which was a chapter we introduced to the market back in 2018.

Bonnie Chan: That has brought a lot of very positive results to both the number of IPOs and fundraising on our platform, as well as, you know, these successful IPOs will bring additional liquidity into the secondary markets. More importantly, we are doing all these new chapters as in response to demand from issuers and investors. They are looking for more bespoke chapters, and therefore, I would share with you that we will continue the journey of making sure that our listing regime stay fit for purpose. Another category which was, you know, sort of previewed by the FS yesterday was potentially revisiting the WVR regime, weighted voting rights, which was a chapter we introduced to the market back in 2018.

Which was a chapter, uh, we introduced to the market back in 2018.

Results to both the number of Ipos and fund raising Oh now a platform as well as you know they say these successful ipos will bring additional liquidity into the secondary markets.

um, now that was 8 years ago, uh, and we are mindful that

More importantly, we are doing all of these new chapters in response to demand from issuers and investors.

They are looking for more bespoke chapters, and therefore I would share.

Share with you that we.

We will continue the journey of making sure that our listing would you say fit for purpose.

Another category, which was.

Sort of previewed by the F. S yesterday was.

The market has moved on and and maybe they, they could be, uh, some room for, um, revisiting our rules and and making enhancements. So those are just a couple of examples of areas that we are looking at, um, the way that my listing team, um, uh consider uh, reforms is really to closely engage with the market, listen to the feedback, and see where we may be able to uh, improve our regulations. So I would

Potentially a risk.

Visiting the doublet real regime, we can voting rights.

Which was the captain we introduced to the market back in 2018.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Now, that was eight years ago, and we are mindful that the market has moved on, and maybe there could be some room for revisiting our rules and making enhancements. Those are just a couple of examples of areas that we are looking at. The way that my listing team consider reforms, is really to closely engage with the market, listen to the feedback, and see where we may be able to improve our regulations. I would say that you should be expecting to see quite a bit of action in the... and, you know, in terms of what we want to do the in enhancing our listing regime. Broadly speaking, all that is with the goal of increasing our competitiveness.

Bonnie Chan: Now, that was eight years ago, and we are mindful that the market has moved on, and maybe there could be some room for revisiting our rules and making enhancements. Those are just a couple of examples of areas that we are looking at. The way that my listing team consider reforms, is really to closely engage with the market, listen to the feedback, and see where we may be able to improve our regulations. I would say that you should be expecting to see quite a bit of action in the... and, you know, in terms of what we want to do the in enhancing our listing regime. Broadly speaking, all that is with the goal of increasing our competitiveness.

Now that was eight years ago, and we are mindful that the.

Say that you should be expecting to see quite a bit of action in the um, you know, in in, in terms of what we want to do the, uh, in enhancing our listing regime. Uh, but broadly speaking, all that is with the goal of increasing. Our competitiveness.

The market has moved on and maybe there could be some room for revisiting all roofs, and making enhancements. So those are just a couple of examples of areas that we are looking at the.

Thank you very much, Bonnie. I think we have time for 1 last question on the line, operator, please.

Thank you. Your question comes from the line of Michael Zhang from City. Please go ahead. Your line is open.

The way that my listing team.

Consider our reforms is really too closely engaged with the market listen to the feedback and see where we may be able to improve.

Thank your line is open. Please ask your question.

Can you hear me?

Hello. Yes.

Yes, we can hear you.

Improve our regulations, so I would say.

Say that you should be expecting to see quite a bit of action and the.

And in terms of what we want to do the enhancing our listing regime.

But broadly speaking all of that is with the goal of increasing our competitiveness.

Yeah.

Bonnie: Thank you very much, Bonnie. I think we have time for one last question on the line. Operator, please.

Vanessa Lau: Thank you very much, Bonnie. I think we have time for one last question on the line. Operator, please.

Thank you very much Bonnie I think we have time for one last question on the line operator please.

Operator: Thank you. Your question comes from the line of Michael Zhang from Citi. Please go ahead. Your line is open. Michael Zhang, your line is open. Please ask your question.

Thank you. Your question comes from the line of Michael <unk> from Citi. Please go ahead. Your line is open.

Oh, thanks for taking my uh, question. Uh, so my question is on the uh, follow-up questions regarding the multi asset, uh, business. Um, so you're saying that you are investing, um, to build a, you know, long-term growth around this 16 income business. Uh, and and and, and I think, in the past we've already seen, you know, launching, um, some initiatives and also seeing very healthy growth of these initiatives. Um, but monetization has been a, a question, uh, for me. And we haven't really seen a lot of, um, Revenue contribution, um, or yeah. So could you could management share your view on the monetary

Sam Your line is a pen please ask your question.

Michael Zhang: Hi, management, can you hear me? Hello?

Hi.

Okay.

Bonnie: Yes.

Vanessa Lau: Yes.

Hello, Yes, yes.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Yes, we can hear you.

Bonnie Chan: Yes, we can hear you.

Yes, we can okay alright, thanks for taking my question so.

Michael Zhang: Okay. Oh, thanks for taking my question. My question is on the follow-up questions regarding the multi-asset business. You're saying that you are investing to build a, you know, long-term growth around this fixed income business. I think in the past we've already seen, you know, launching some initiatives and also seeing very healthy growth of these initiatives. Monetization has been a question for me, and we haven't really seen a lot of revenue contribution over years. Could you, could management share your view on the monetization opportunities of the fixed income business compared with your, you know, equities business, and how do you see the overall revenue opportunities in the long term? Do you see...

My question is on the follow up question is regarding the multi asset.

Business.

So youre, saying that youre investing to build the long term growth around the fixed income business.

Opportunities of these 6 income business compared with your uh, you know, equities business. And how how do you see the overall Revenue opportunities in the long term and do you see, uh, do you have any Vision? Let's say, you know, 5, 10 years later, um, how much of your total revenue could be contributed by this, um, fixed income business, uh, and you also have just made investments into Omnicare. So, would you consider any additional Investments or MMA to accelerate these initiatives? Thank you.

And.

I think in the past we've already seen the launching of.

Um, thank you.

Some initiatives and also seeing very healthy growth of these initiatives.

But monetization has been a question.

For me and we haven't really seen a lot of work.

Tradition.

Uh yes. Indeed, I I think you're both Vanessa and Greg explained that in the past week we we we might have tried uh on a less sort of structured manner to double into certain products.

So could you could management share your view on the monetization opportunities.

Com business compare with you.

Our equities business and how do you see the overall revenue opportunities in the long term and do you see do you have ambition, let's say in 510 years later.

Um, but this time around is very, very different. I think we are very mindful of a shift in the um, macro picture.

Michael Zhang: Do you have any vision, let's say, in, you know, 5, 10 years later, how much of your total revenue could be contributed by this fixed income business? You also have just made investments into OmniClear, so would you consider any additional investments or MNAs to accelerate these initiatives? Thank you.

Of the total revenue could be contributed quite a bit.

Fixed income business.

And you also has just made investments into omnicare. So would you consider any additional investments or M&A is to accelerate these initiatives. Thank you.

The timing is very interesting in the sense that um we are seeing. And I think I've mentioned it a few times during my presentation, a desire from investors globally to diversify and it's not confined to 1 asset class. I think we see investors

You know, in the midst of the global uncertainty be, it geopolitical, be it, macroeconomic.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): Thank you. Yes, indeed. I think, you know, both Vanessa and Greg explained that in the past, we might have tried on a less sort of structured manner to dabble into certain products. This time around is very, very different. I think we are very mindful of a shift in the macro picture. The timing is very interesting in the sense that we are seeing, and I think I've mentioned it a few times during my presentation, a desire from investors globally to diversify, and it's not confined to one asset class. I think we see investors, you know, in the midst of the global uncertainty, be it geopolitical, be it macroeconomic, they want to make sure that they have a more diverse set of investment opportunities. You know, case in point, right?

Bonnie Chan: Thank you. Yes, indeed. I think, you know, both Vanessa and Greg explained that in the past, we might have tried on a less sort of structured manner to dabble into certain products. This time around is very, very different. I think we are very mindful of a shift in the macro picture. The timing is very interesting in the sense that we are seeing, and I think I've mentioned it a few times during my presentation, a desire from investors globally to diversify, and it's not confined to one asset class. I think we see investors, you know, in the midst of the global uncertainty, be it geopolitical, be it macroeconomic, they want to make sure that they have a more diverse set of investment opportunities. You know, case in point, right?

Thank you.

Ah, Yes, indeed, I think both Vanessa and Greg explained that in the past we might have tried.

On a less sort of structured manner to dabble into certain products.

But this time around is very very different I think we are very mindful of a shift in the <unk>.

They want to make sure that they have a more, um, diverse set of investment opportunities and, you know, case in point, right? And they're not too distant past. We see investors sort of trying to put more money in different markets, a lot of which you know we benefited from uh in Asia.

Different asset classes from gold to Silver. Um,

Macro picture.

The timing is very interesting in the sense that we are seeing and I think I've mentioned it a few times during my presentation, a desire from investments globally to diversify and it's not confined to one asset class I think we see investors.

And, um, even uh, traditional what you know, is considered safe havens like us. Treasuries, people are having second thoughts about

In the midst of the global uncertainty geopolitical via macroeconomic they.

They want to make sure that they have a more diverse set of investment opportunities and you know a case in point right in the not too distant past, we see investors sort of trying to put more money in different markets a lot of which we benefited from it.

Believe that the timing is right for us to, once again, revisit, you know how we built a multi asset ecosystem, but this time, it has to be a more holistic approach. It has to be not just confined to launching a few products. But thinking about how we develop,

With the help of Partners a more.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): In the not-too-distant past, we see investors sort of trying to put more money in different markets, a lot of which, you know, we benefited from, in Asia, different asset classes from gold to silver. Even, traditional, what, you know, is considered safe havens like U.S. Treasuries, people are having second thoughts about. With that as the backdrop, we do believe that the timing is right for us to once again revisit, you know, how we built a multi-asset ecosystem. This time it has to be a more holistic approach. It has to be not just confined to launching a few products, but thinking about how we develop, with the help of partners, a more comprehensive ecosystem. That's the thinking behind, you know, these, initiatives that we are rolling out one by one.

Bonnie Chan: In the not-too-distant past, we see investors sort of trying to put more money in different markets, a lot of which, you know, we benefited from, in Asia, different asset classes from gold to silver. Even, traditional, what, you know, is considered safe havens like U.S. Treasuries, people are having second thoughts about. With that as the backdrop, we do believe that the timing is right for us to once again revisit, you know, how we built a multi-asset ecosystem. This time it has to be a more holistic approach. It has to be not just confined to launching a few products, but thinking about how we develop, with the help of partners, a more comprehensive ecosystem. That's the thinking behind, you know, these, initiatives that we are rolling out one by one.

Asia.

Different asset classes from gold to silver [laughter].

And even traditional what you know.

Is considered a safe havens like U S. Treasuries people are having second thoughts about so with that as the backdrop. We do believe that the timing is right for us to.

Comprehensive ecosystem. And, and that's the thinking behind, you know, these, um, initiatives, that, that we are rolling out 1 by 1. Now I mentioned earlier. The CMU Omni Clear investment is just a 1, small step in that direction. Um, Vanessa has explained that we have more planned out,

Once again revisit how we built our multi asset ecosystem, but this time it has to be a more holistic approach. It has to be not just confined to launching a few products, but thinking about how we developed with the help of partners a more.

Comprehensive ecosystem and that's the thinking behind these initiatives that that we are rolling out one by one now I mentioned earlier to see them you only clear investment it's just.

[Company Representative] (Hong Kong Exchanges & Clearing Limited): I mentioned earlier, the CMU OmniClear investment is just a one small step in that direction. Vanessa has explained that we have more planned out. To your specific question, when are we going to see the return come back, right? I think that's very difficult to quantify and say exactly when, suffice to say that, as we all know, right, compare the equities markets with the fixed income market. The fixed income market is exponentially much bigger, therefore we do see tremendous opportunity, you know, in the FICC space. Sorry, you know, I'm not able to quantify it for you, suffice to say that we do firmly believe that it is really worth our time and investment. I don't know if Mike wants to supplement what I said.

Bonnie Chan: I mentioned earlier, the CMU OmniClear investment is just a one small step in that direction. Vanessa has explained that we have more planned out. To your specific question, when are we going to see the return come back, right? I think that's very difficult to quantify and say exactly when, suffice to say that, as we all know, right, compare the equities markets with the fixed income market. The fixed income market is exponentially much bigger, therefore we do see tremendous opportunity, you know, in the FICC space. Sorry, you know, I'm not able to quantify it for you, suffice to say that we do firmly believe that it is really worth our time and investment. I don't know if Mike wants to supplement what I said.

Um to your specific question. So when are we going to see The Return come come back? Right? I think that's very difficult to quantify and say exactly when but suffice to say that as we all know, right, compared the equities markets, with the fixed income Market, the fixed income Market is exposed eventually, much bigger. And therefore, we do see tremendous opportunity, um, you know, in the ficc space. So, um, sorry. And you know, I'm not able to quantify it for you, but suffice to say that we, we do firmly believe that um, it is really worth our time and investment. I don't know if my colleagues want to

supplement, what I

One small step in that direction. Vanessa has explained that we have more planned out.

To your specific question. So when are we going to see the return come come back right I think that's very difficult to quantify and say exactly when but suffice to say that as we all know right compared the equities markets with the fixed income market. The fixed income market is exposed to essentially much bigger and therefore, we do see.

Tremendous opportunity and D F ICC space so.

Sorry, and I am not able to quantify it for you, but suffice to say that we do firmly believe that it is really worth our time and investment I don't know if Mike wants to supplement what I say.

Vanessa: Thank you, Bonnie. I would maybe just paint a little bit the size of the opportunity. I think the reason why we are trying to capture this opportunity now versus, say, 5 years ago... Well, why didn't we choose to build an FIC ecosystem then? The reason is very obvious, is if you whether you look at the issuances of China government bonds or the issuances of dim sum bonds in Hong Kong, you see almost this escalating curve upwards, and this is not a curve that is a prediction, this is an actual numbers curve, right? 5 years ago or 10 years ago, that wasn't the case. I would also say that 5 years ago, 10 years ago, RMB internationalization as a government policy or as a central policy, wasn't quite the same.

Vanessa Lau: Thank you, Bonnie. I would maybe just paint a little bit the size of the opportunity. I think the reason why we are trying to capture this opportunity now versus, say, 5 years ago... Well, why didn't we choose to build an FIC ecosystem then? The reason is very obvious, is if you whether you look at the issuances of China government bonds or the issuances of dim sum bonds in Hong Kong, you see almost this escalating curve upwards, and this is not a curve that is a prediction, this is an actual numbers curve, right? 5 years ago or 10 years ago, that wasn't the case. I would also say that 5 years ago, 10 years ago, RMB internationalization as a government policy or as a central policy, wasn't quite the same.

Thank you Bonnie I would maybe just paint a little bit.

The the size of the opportunity I think.

Said, uh, thank you, Bonnie. I would, uh, maybe just, uh, paint a little bit. Um, the, the, the size of the opportunity, I, I think, uh, the reason, uh, why we are, um, trying to capture this opportunity Now versus say 5 years ago. Well, why didn't we choose to build an Fick ecosystem? Then, um, the reason is very obvious is if you, whether you look at the issuances of China, government bonds, or the issuances of dim sum Bonds in Hong Kong, you see, almost this escalating curve upwards and this is not a curve that is a prediction. This is an actual, uh, numbers curve, right? So 5 years ago or 10 years ago, that wasn't the case. I would also say that 5 years ago, 10 years ago R&B internationalization as a government policy, or as a central, uh, policy wasn't quite the same. Um, so the Tailwind, uh,

The reason why we are trying to capture this opportunity now versus say five years ago, well why didn't we choose to build an F. IC ecosystem. Then the reason it's very obvious if you whether you look at the issuances of China government bonds.

Or the issuances of dim sum bonds in Hong Kong, you see almost this escalating curve upwards and this is not a cost that is a prediction. This is an actual.

Is definitely there. The policy support is definitely there and therefore this is the time to do it. Now if this is the time to do it to your question is it actually worthwhile right? Is there a big prize at the end of it? Um I it's It's tricky to suddenly put through forecasts uh based on a vision but if you look at what other exchanges in the world are able to achieve in terms of

Numbers are right. So five years ago or 10 years ago that wasn't the case I would also say that five years ago 10 years ago RMB into rationalization as a government policy also central policy wasn't quite the same.

Vanessa: The tailwind is definitely there, the policy support is definitely there. This is the time to do it. Now, if this is the time to do it, to your question, is it actually worthwhile, or is there a big prize at the end of it? It is tricky to suddenly put through forecasts based on a vision, but if you look at what other exchanges in the world are able to achieve in terms of their revenue from fixed income versus the rest of their revenue, actually, Hong Kong Exchange is in a class of its own because we have a very strong equity franchise, an IPO franchise. How do other exchanges who don't have that make money? A lot of it actually comes from fixed income or fixed income-related products and ecosystem.

Vanessa Lau: The tailwind is definitely there, the policy support is definitely there. This is the time to do it. Now, if this is the time to do it, to your question, is it actually worthwhile, or is there a big prize at the end of it? It is tricky to suddenly put through forecasts based on a vision, but if you look at what other exchanges in the world are able to achieve in terms of their revenue from fixed income versus the rest of their revenue, actually, Hong Kong Exchange is in a class of its own because we have a very strong equity franchise, an IPO franchise. How do other exchanges who don't have that make money? A lot of it actually comes from fixed income or fixed income-related products and ecosystem.

So the tailwind.

It's definitely that the policy support is definitely there and therefore this is the time to do it now if this is the time to do it to your question is it actually was why or is there a big prize at the end of it I E.

It's tricky to suddenly put three or forecasts are based on our vision, but if you look at what other exchanges in the world are able to achieve in terms of their revenue from fixed income versus the rest of their revenue.

Revenue from fixed income versus the rest of their revenue, uh, actually Hong Kong exchange is in a class of its own, because we have a very strong Equity franchise and IPO franchise. Um, how do other exchanges who don't have that make money. Um, a lot of it actually comes from fixed income or fixed income related, um, products and ecosystem, and not to mention, um, players in the world that actually, uh, specialize in uh, in cfds centralized Securities depository, which is, uh, basically, uh, what we're trying to to do with our CMU acquisition. So putting all of those things together, a strong uh backdrop uh policy, support, and uh viable business models, which have been proven um in other parts of the world and in our peers, why wouldn't Hong Kong exchange grab this opportunity now and build for the future, right? You have something

Actually Hong Kong exchange is in a class of its own because we have a very strong equity franchise and IPO franchise.

How's the other exchanges, who don't have that make money.

A lot of it actually comes from fixed income all fixed income related products and ecosystem and not to mention players.

Vanessa: Not to mention, players in the world that actually specialize in CSD, Central Securities Depository, which is basically what we're trying to do with our CMU acquisition. Putting all of those things together, a strong backdrop, policy support and viable business models which have been proven in other parts of the world and in our peers, why wouldn't Hong Kong Exchange grab this opportunity now and build for the future? Greg, you have something?

Vanessa Lau: Not to mention, players in the world that actually specialize in CSD, Central Securities Depository, which is basically what we're trying to do with our CMU acquisition. Putting all of those things together, a strong backdrop, policy support and viable business models which have been proven in other parts of the world and in our peers, why wouldn't Hong Kong Exchange grab this opportunity now and build for the future? Greg, you have something?

Players in the world that actually.

Specialize in in CFT centralized securities Depository, which is basically what we're trying to do without C. M. U acquisition, so putting all of those things together a strong backdrop a policy support.

Uh, yeah, I guess very quickly, right? With the hkma sfc road map. Um, it it painted a very clear picture that it when we talk about fixed income, um, it's, it's quite comprehensive we're talking about, obviously, uh, Vanessa mentioned the government bonds, uh, you know, uh, circulation and then maybe all the derivatives around it, um, clearing, uh, then you were talking about the, uh, uh, potential buildup of, you know, a credit market. Now, you know, once you have

And a viable business models, which have been proven in other parts of the world and in all peers why wouldn't Hong Kong exchange grabbed this opportunity now and build for the future right you'll have something.

Greg: Yeah, I guess quickly, right? With the HKMA SFC roadmap, it painted a very clear picture that when we talk about fixed income, it's quite comprehensive. We're talking about, obviously, Vanessa mentioned the government bonds, you know, circulation, and then maybe all the derivatives around it, clearing. You were talking about the potential buildup of, you know, a credit market. Now, you know, once you have more of the offshore curve pricing, then you will have data, then you have index, then you have ETFs, and so forth. With the backdrop of global investors looking to diversify, right, I think I might have mentioned it before, equities market, yes, it's strong because people are coming over to Hong Kong, strong IPO pipelines and so forth.

Vanessa Lau: Yeah, I guess quickly, right? With the HKMA SFC roadmap, it painted a very clear picture that when we talk about fixed income, it's quite comprehensive. We're talking about, obviously, Vanessa mentioned the government bonds, you know, circulation, and then maybe all the derivatives around it, clearing. You were talking about the potential buildup of, you know, a credit market. Now, you know, once you have more of the offshore curve pricing, then you will have data, then you have index, then you have ETFs, and so forth. With the backdrop of global investors looking to diversify, right, I think I might have mentioned it before, equities market, yes, it's strong because people are coming over to Hong Kong, strong IPO pipelines and so forth.

Yeah, I guess quickly right with the HK I may SFC roadmap.

Painted a very clear picture that it's when we talk about fixed income.

It's quite comprehensive we're talking about obviously Vanessa mentioned the government bonds.

want to, you know, keep their money, um, split up in, you know, different geographical area or different asset, you know, uh, different uh uh, you know, asset class based or whatsoever fixed income is

Circulation and then maybe all the derivatives around it.

Clearing.

Then you were talking about the potential.

Potential buildup of a credit market now once you have more offshore curve pricing. Then you will have data that you have indexed and you have etfs and so forth.

The most important part much more important than than Equity. So with this particular backdrop, the policy support and I think, uh, with with our will, uh, in developing various different platforms and and products around it. I uh, we have, you know, strong conviction that this will bring uh, a good Revenue diver diversification opportunity for us.

And with the backdrop of global investors looking to diversify right.

Ah I might've mentioned it before equities market, yes, it's strong because people are coming over to Hong Kong strong IPO pipelines and so forth, but truly if you if people are wanting to diversify and want to keep.

Thank you. I think this marked the end of today's session. Thank you everyone for joining us today on the line. And we look forward to um, continue to engage with you. And please reach out to myself and I our team for any follow-up questions. Have a good evening.

Greg: Truly, if people are wanting to diversify and wanna, you know, keep their money, split up in, you know, different geographical area or different asset, you know, asset class base or whatsoever, fixed income. The most important part, much more important part than equity. With this particular backdrop, the policy support, and I think, with our will in developing various different platforms and products around it, we have, you know, strong conviction that this will bring a good revenue diversification opportunity for us.

Vanessa Lau: Truly, if people are wanting to diversify and wanna, you know, keep their money, split up in, you know, different geographical area or different asset, you know, asset class base or whatsoever, fixed income. The most important part, much more important part than equity. With this particular backdrop, the policy support, and I think, with our will in developing various different platforms and products around it, we have, you know, strong conviction that this will bring a good revenue diversification opportunity for us.

Keep their money.

Split up in different geographical area or different ethic differ.

Different asset.

Asset class based on whatsoever fixed income is.

The most important part much more important than equity so with this particular backdrop the policy support.

And I think with with our will and developing various different platforms and products around it.

We have strong conviction that this will bring a good revenue diversity diversification opportunity for us.

Bonnie: Thank you. I think this marks the end of today's session. Thank you everyone for joining us today on the line. We look forward to continuing to engage with you. Please reach out to myself and the IR team for any follow-up questions. Have a good evening.

Vanessa Lau: Thank you. I think this marks the end of today's session. Thank you everyone for joining us today on the line. We look forward to continuing to engage with you. Please reach out to myself and the IR team for any follow-up questions. Have a good evening.

Thank you and this marks the end of today's session and thank you everyone for joining us today on the line and we look forward to continue to engage with you and please reach out to myself and the IR team for any follow up questions have a good evening.

[music].

Okay.

[music].

Yes.

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