Q2 2026 Hong Kong Exchanges and Clearing Ltd Earnings Call

August 19, 2026

Speaker #1: POO Ms. Vanessa Lau. Our Group CFO Mr. Herbert Hui. Our Group CIO Mr. Richard Leung. And our Head of Markets Mr. Gregory Yu. Bonnie and Herbert will first give a presentation on our business highlights, strategic progress, and financial results.

Speaker #1: And we'll then open the floor to questions. Without further ado, over to you, please, Bonnie.

Speaker #2: Good afternoon. Good afternoon, everyone. Thank you for joining us today. I'm pleased to be presenting our interim results for 2026. In a few moments, Herbert Hui, our Group Chief Financial Officer, will share more details on the numbers.

Speaker #2: After that, I will discuss some of our business highlights and finally the team and I will be happy to take your questions. So let's kick off with a quick overview of the results.

Speaker #2: HKEX delivered an exceptional first half of 2026, reporting the group's best-ever half-yearly revenue and profit. These results surpassed the previous records set in the second half of 2025.

Speaker #2: Herbert will talk through these numbers in more detail shortly. Now, driven by optimism in China's outlook underpinned by exciting developments in innovation, there was renewed global investor interest in our markets.

Speaker #2: The Hong Kong cash market went from strength to strength, with volumes reaching a record half-yearly high. We also saw strong performance across the Hong Kong derivatives, ETP, and commodities markets.

Speaker #2: With the continued momentum we have been seeing, we are confident that the Hong Kong markets have regained their vibrancy. Therefore, our focus is now on execution.

Speaker #2: In particular, sustaining the momentum, making our markets even more competitive, building the multi-asset ecosystem that will support Hong Kong's next phase of growth, and strengthening our connectivity to the major markets and liquidity pools of the region.

Speaker #2: Highlights of this in the first half include developments in FIC and our index business. The competitiveness of our listing framework, market infrastructure, operational and technological enhancements, and increased connectivity with exchanges in Southeast Asia, and Central Asia.

Speaker #2: I will discuss our core business strengths, our focus on diversification, and our most important strategic initiatives in more detail shortly. But first, let me hand over to Herbert to go through the results.

Speaker #2: Over to you, Herbert.

Speaker #3: Thank you, Bonnie. Good afternoon to you all. My name is Herbert Hui, and I'm pleased to be here to share with you highlights of our 2026 first half financial results.

Speaker #3: HKEX delivered a record financial performance in first half 2026, with revenue and profit both reaching record half-yearly highs. Driven by positive market sentiment, strong interest in Chinese mainland technology and AI-related stocks, sustained momentum in IPO activity, and active participation from both international and Chinese mainland investors, trading volume across the cash market derivatives market and Stock Connect reached half-yearly record highs in first half 2026.

Speaker #3: The group's commodities market also performed strongly, with LME chargeable ADV reaching a record half-yearly high. The group's revenue and other income of 16.7 billion dollars was 19% higher than first half 2025.

Speaker #3: Profit after tax was 10.6 billion dollars, and EPS was $8.36, both up 24% compared to the year before. The board has declared a first interim dividend of $7.43 per share, representing 90% of the group's profit attributable to shareholders excluding the results of HKEX Foundation.

Speaker #3: Turning to the detailed financials for the half-year, trading volumes reached record half-yearly highs across all markets in first half 2026. Headline ADT increased by 18% year-on-year to 283 billion dollars, and both Northbound and Southbound Stock Connect reached all-time highs, with Northbound ADT more than doubled year-on-year.

Speaker #3: The derivatives and commodities market also performed strongly, with trading volumes increasing by 6% and 18% respectively, compared to first half last year. Driven by the record trading volumes, revenue and other income of the group increased by 19% compared with first half last year, reflecting higher trading and currencies as well as increased depository and listing fees.

Speaker #3: The increase was partly offset by lower net investment income from margin funds, attributable to higher rebates payable to participants following the implementation of revised margin rebate arrangement starting October last year.

Speaker #3: And also attributable to lower investment returns. Our PAX increased by 6%, primarily due to higher staff costs, IT costs, and foundation donations, partly offset by the non-recurring FCA fine of $19 million, paid in 2025, and an insurance claim of $24 million, received in 2026.

Herbert Hui: Six. The Group's commodities market also performed strongly with LME chargeable ADV reaching a record H1 high. The Group's revenue and other income of HKD 16.7 billion was 19% higher than H1 2025. Profit after tax was HKD 10.6 billion, and EPS was HKD 8.36, both up 24% compared to the year before. The board has declared a first interim dividend of HKD 7.43 per share, representing 90% of the group's profit attributable to shareholders, excluding the results of HKEX Foundation. Turning to the detailed financials for the half year. Trading volumes reached record H1 highs across all markets in H1 2026. Headline ADT increased by 18% year-on-year to HKD 283 billion. Both northbound and southbound Stock Connect reached all-time highs, with northbound ADT more than doubled year-on-year. The derivatives and commodities market also performed strongly, with trading volumes increasing by 6% and 18% respectively, compared to H1 last year.

Speaker #1: The group's commodities market also performed strongly, with LME chargeable ADV reaching a record half-yearly high. The group's revenue and other income of $16.7 billion was 19% higher than the first half of 2025.

Speaker #3: Both relating to the previous LME NICO incident. Excluding foundation donations, FCA fine, and the insurance claim, our PAX was up 9%. Turning to next page, where we look at the Q2 2026 financials against the same period last year.

Speaker #1: Profit after tax was $10.6 billion, and EPS was $8.36, both up 24% compared to the year before. The Board has declared a first interim dividend of $7.43 per share, representing 90% of the Group's profit attributable to shareholders, excluding the results of the HKEX Foundation.

Speaker #3: Following a strong first quarter of 2026, market activity accelerated further in Q2, with headline ADT reaching a record quarterly high of 289 billion dollars.

Speaker #3: Revenue and profit increased by 18% and 21% respectively against Q2 last year. The growth was driven by higher trading and curring fees from increased cash derivatives and commodities market volumes.

Speaker #1: Turning to the detailed financials for the half-year: trading volumes reached record half-yearly highs across all markets in the first half of 2026. Headline ADT increased by 18% year-on-year to $283 billion.

Speaker #3: Partly offset by lower net investment income from margin funds, due to higher rebate payable to participants under the revised margin rebate arrangements. Moving on to 2026 results against the historical trendline.

Speaker #1: And both Northbound and Southbound Stock Connect reached all-time highs, with Northbound ADT more than doubling year-on-year. The derivatives and commodities markets also performed strongly, with trading volumes increasing by 6% and 18%, respectively, compared to the first half of last year.

Speaker #3: Driven by the sustained market momentum, the financial performance in the first half of 2026 is above the historical trendline. Throughout the years, HKEX continues to maintain an attractive EBITDA margin, reflecting the successful diversification of our business in recent years and our cost discipline.

Speaker #1: Driven by the record trading volumes, revenue and other income of the group increased by 19% compared with the first half last year, reflecting higher trading in currencies as well as increased depository and listing fees.

Herbert Hui: Driven by the record trading volumes, revenue and other income of the group increased by 19% compared with H1 last year, reflecting higher trading and clearing fees as well as increased depository and listing fees. The increase was partly offset by lower net investment income from margin funds attributable to higher rebates payable to participants following the implementation of revised margin rebate arrangement starting October last year, and also attributable to lower investment returns. OPEX increased by 6%, primarily due to higher staff costs, IT costs, and foundation donations, partly offset by the non-recurring FCA fine of HKD 90 million paid in 2025 and an insurance claim of HKD 24 million received in 2026, both relating to the previous LME nickel incident. Excluding foundation donations, FCA fine, and the insurance claim, OPEX was up 9%.

Herbert Hui: Driven by the record trading volumes, revenue and other income of the group increased by 19% compared with H1 last year, reflecting higher trading and clearing fees as well as increased depository and listing fees. The increase was partly offset by lower net investment income from margin funds attributable to higher rebates payable to participants following the implementation of revised margin rebate arrangement starting October last year, and also attributable to lower investment returns. OpEX increased by 6%, primarily due to higher staff costs, IT costs, and foundation donations, partly offset by the non-recurring FCA fine of HKD 90 million paid in 2025 and an insurance claim of HKD 24 million received in 2026, both relating to the previous LME nickel incident. Excluding foundation donations, FCA fine, and the insurance claim, OpEX was up 9%.

Speaker #3: As we have been building and enhancing our product offerings, market and microstructure, and technology, platform over the last few years, we will well position to capture the opportunities arising from this positive momentum.

Speaker #1: The increase was partly offset by lower net investment income from margin funds, attributable to higher rebates payable to participants following the implementation of the revised margin rebate arrangement starting October last year.

Speaker #3: Next, we take a look at our investment income. Total net investment income for first half 2026 was 2.56 billion dollars, representing a decrease of 11% compared with first half last year.

Speaker #1: And also attributable to lower investment returns. OPEX increased by 6%, primarily due to higher staff costs, IT costs, and foundation donations, partly offset by the non-recurring FCA fine of $19 million paid in 2025 and an insurance claim of $24 million received in 2026.

Speaker #3: This included a non-recurring valuation gain of 298 million dollars in our unlisted minority equity investments. Excluding this gain, net investment income was 21% lower than first half 2025, primarily reflecting lower margin fund income due to higher rebates to participants as well as reduced investment returns, reflecting a lower interest rate environment for reinvestment.

Speaker #1: Both relating to the previous LME NICO incident. Excluding foundation donations, the FCA fine, and the insurance claim, OPEX was up 9%. Turning to the next page, where we look at the Q2 2026 financials against the same period last year.

Speaker #3: Looking ahead into second half 2026, net investment income is expected to continue to be affected by the revised margin correctional arrangements, fluctuating margin fund size, and movements in Hong Kong dollar interest rates.

Herbert Hui: Turning to next page, where we look at the Q2 2026 financials against the same period last year. Following a strong Q1 2026, market activity accelerated further in Q2 with headline ADT reaching a record quarterly high of HKD 289 billion. Revenue and profit increased by 18% and 21% respectively against Q2 last year. The growth was driven by higher trading clearing fees from increased cash derivatives and commodities market volumes, partly offset by lower net investment income from margin funds due to higher rebate payable to participants under the revised margin rebate arrangements. Moving on to 2026 results against the historical trend line. Driven by the sustained market momentum, the financial performance in the H1 2026 is above the historical trend line.

Speaker #1: Following a strong first quarter of 2026, market activity accelerated further in Q2, with headline ADT reaching a record quarterly high of $289 billion. Revenue and profit increased by 18% and 21%, respectively, against Q2 last year.

Speaker #3: Now, let's look at our operator expenses. Our PAX was up 6% in first half 2026 compared with first half 2025, due to the increase in staff costs and inspectionary increase in other expenses, partly offset by 19 million FCA fine in 2025 and an insurance claim relating to NICO litigation of 24 million, received in 2026.

Speaker #1: The growth was driven by higher trading and clearing fees from increased cash, derivatives, and commodities market volumes. This was partly offset by lower net investment income from margin funds, due to higher rebates payable to participants under the revised margin rebate arrangements.

Speaker #3: Excluding this non-recurring items, our PAX was up 9%. This reflects partly the group's investment in tailends, to build our multi-asset ecosystem. In summary, our record first half 2026 financial results reflected record market trading volumes and benefited from our past and ongoing execution of various strategic initiatives in products, market structure, and systems.

Speaker #1: Moving on to 2026 results against the historical trendline. Driven by sustained market momentum, the financial performance in the first half of 2026 is above the historical trendline.

Speaker #1: Throughout the years, HKEX has continued to maintain an attractive EBITDA margin, reflecting the successful diversification of our business in recent years and our cost discipline.

Herbert Hui: Throughout the years, HKEX continues to maintain an attractive EBITDA margin, reflecting the successful diversification of our business in recent years and our cost discipline. As we have been building and enhancing our product offerings, market and microstructure, and technology platform over the last few years, we were well-positioned to capture the opportunities arising from this positive momentum. Next, we take a look at our investment income. Total net investment income for H1 2026 was HKD 2.56 billion, representing a decrease of 11% compared with H1 last year. This included a non-recurring valuation gain of HKD 298 million in our unlisted minority equity investments. Excluding this gain, net investment income was 21% lower than H1 2025, primarily reflecting lower margin fund income due to higher rebates to participants, as well as reduced investment returns, reflecting a lower interest rate environment for reinvestment.

Speaker #3: With that, I will now hand back to Bonnie for our business update and outlook.

Speaker #1: As we have been building and enhancing our product offerings, market and microstructure, and technology platform over the last few years, we are well positioned to capture the opportunities arising from this positive momentum.

Speaker #2: Thank you, Herbert. As we noted, the results for the first half of 2026 were strong. More importantly, they demonstrate that Hong Kong's markets have regained the vibrancy, supported by renewed investor interest, active capital formation, and the continual execution of our strategy to build a broader, more competitive market ecosystem.

Speaker #1: Next, we take a look at our investment income. Total net investment income for the first half of 2026 was $2.56 billion, representing a decrease of 11% compared with the first half of last year.

Speaker #2: Average daily turnover volume and the cash market saw a record half-yearly high, 18% higher compared with the first half of 2025. Meanwhile, our diversification strategy continues to deliver.

Speaker #1: This included a non-recurring valuation gain of $298 million in our unlisted minority equity investments. Excluding this gain, net investment income was 21% lower than the first half of 2025, primarily reflecting lower margin fund income due to higher rebates to participants, as well as reduced investment returns reflecting a lower interest rate environment for reinvestment.

Speaker #2: The strength of our equity market gives us the platform and confidence to keep building across derivatives and commodities, as well as FIC, indices, and data.

Speaker #2: The Connect programs also performed well, with Stock Connect, Bond Connect, and Swap Connect all reaching record highs. And backed by strong investor demand and a healthy IPO pipeline, Hong Kong ranked as the second leading global IPO venue.

Speaker #1: Looking ahead into the second half of 2026, net investment income is expected to continue to be affected by the revised margin correctional arrangements, fluctuating margin fund size, and movements in Hong Kong dollar interest rates.

Herbert Hui: Looking ahead into H2 2026, net investment income is expected to continue to be affected by the revised margin collateral arrangements, fluctuating margin fund size, and movements in Hong Kong dollar interest rates. Now let's look at our operating expenses. OPEX was up 6% in H1 2026 compared with H1 2025, due to the increase in staff costs and inflationary increase in other expenses, partly offset by HKD 90 million FCA fine in 2025 and an insurance claim relating to nickel litigation of HKD 24 million received in 2026. Excluding these non-recurring items, OPEX was up 9%. This reflects partly the group's investment in talents to build our multi-asset ecosystem. In summary, our record H1 2026 financial results reflected record market trading volumes and benefited from our past and ongoing execution of various strategic initiatives in products, market structure, and systems.

Speaker #2: In the first half of 2026, notably, activity spanned a diversity of sectors, including technology, biotech, new energy, EVs, consumer, mining, and others. Additionally, fundraising success has not been limited to IPOs.

Speaker #1: Now let's look at our operating expenses. OPEX was up 6% in first half 2026 compared with first half 2025, due to the increase in staff costs and inspectionary increase in other expenses, partly offset by $19 million FCA fine in 2025 and an insurance claim relating to NICO litigation of $24 million received in 2026.

Speaker #2: Follow-on fundraising saw the strongest first half performance since 2021. Now, let's look a bit more closely at derivatives, commodities, and the broader range of risk management tools we're developing for our markets.

Speaker #1: Excluding these non-recurring items, OPEX was up 9%. This partly reflects the group's investment in tailends to build our multi-asset ecosystem. In summary, our record first-half 2026 financial results reflected record market trading volumes and benefited from our past and ongoing execution of various strategic initiatives in products, market structure, and systems.

Speaker #2: Average daily volumes for derivatives hit a record half-yearly high. This growth was underpinned by robust trading and hedging demand amid an active market environment.

Speaker #2: There were notable increases in the trading volumes of stock options, and Hang Seng Tech Index futures and options. The LME recorded strong growth in trading activity, with chargeable average daily volumes reaching a record half-yearly high.

Speaker #1: With that, I will now hand back to Bonnie for our business update and outlook.

Herbert Hui: With that, I will now hand back to Bonnie for our business update and outlook.

Speaker #2: Thank you, Robert. As we noted, the results for the first half of 2026 were strong. More importantly, they demonstrate that Hong Kong's markets have regained their vibrancy, supported by renewed investor interest, active capital formation, and the continual execution of our strategy to build a broader, more competitive market ecosystem.

Bonnie Y Chan: Thank you, Howard. As we noted, the results for H1 2026 were strong. More importantly, they demonstrate that Hong Kong's markets have regained their vibrancy. Supported by renewed investor interest, active capital formation, and the continued execution of our strategy to build a broader, more competitive market ecosystem. Average daily turnover volume in the cash market saw a record half-yearly high, 18% higher compared with H1 2025. Meanwhile, our diversification strategy continues to deliver. The strength of our equity market gives us the platform and confidence to keep building across derivatives and commodities as well as FIC, indices, and data. The Connect programs also performed well, with Stock Connect, Bond Connect, and Swap Connect all reaching record highs.

Speaker #2: We are also continuing to broaden our commodities franchise, including a product such as US dollar gold futures, where activity has reached repeated new highs.

Speaker #2: Another example is the Shanghai Futures Exchange LME Hot Road Coil Futures settlement price licensing initiatives, which will support the planned launch of LME steel, HRC Shanghai, and London later this year.

Speaker #2: Average daily turnover volume in the cash market saw a record half-yearly high, 18% higher compared with the first half of 2025. Meanwhile, our diversification strategy continues to deliver.

Speaker #2: With these initiatives, we're strengthening cross-border cooperation in commodities and helping international market participants access China-linked benchmarks for trading and risk management. So, now let's look at what is driving the near-term momentum in our markets.

Speaker #2: The strength of our equity market gives us the platform and confidence to keep building across derivatives and commodities, as well as FIC, indices, and data.

Speaker #2: The Connect programs also performed well, with Stock Connect, Bond Connect, and Swap Connect all reaching record highs. Backed by strong investor demand and a healthy IPO pipeline, Hong Kong ranked as the second leading global IPO venue.

Speaker #2: We continue to see two complementary engines of growth. The first is capital formation. We have worked closely with regulators and market participants to enhance the attractiveness platform.

Bonnie Y Chan: Backed by strong investor demand and a healthy IPO pipeline, Hong Kong ranked as the second leading global IPO venue in H1 2026. Notably, activity spanned a diversity of sectors, including technology, biotech, new energy, EVs, consumer, mining, and others. Additionally, fundraising success has not been limited to IPOs. Follow-on fundraising saw the strongest H1 performance since 2021. Now, let's look a bit more closely at derivatives, commodities, and the broader range of risk management tools we're developing for our markets. Average daily volumes for derivatives hit a record half-yearly high. This growth was underpinned by robust trading and hedging demand amid an active market environment. There were notable increases in the trading volumes of stock options and Hang Seng TECH Index futures and options. The LME recorded strong growth in trading activity, with chargeable average daily volumes reaching a record half-yearly high.

Speaker #2: And with partner exchanges to enhance regional connectivity, to our markets. Together, we're together with sustained interest from Chinese and international issuers, this has helped build a healthy and very diverse IPO pipeline.

Speaker #2: The pipeline spans technology, biotech, healthcare, mining, consumer, and include new economy companies, established corporates, multinational enterprises, and potential homecoming listings. We're also seeing a strong follow-on fundraising activity as listed companies continue to leverage Hong Kong as a capital raising platform.

Speaker #2: Follow-on fundraising saw the strongest first-half performance since 2021. Now, let's look a bit more closely at derivatives, commodities, and the broader range of risk management tools we're developing for our markets.

Speaker #2: Average daily volumes for derivatives hit a record half-yearly high. This growth was underpinned by robust trading and hedging demand amid an active market environment.

Speaker #2: Now, the second engine of growth is the strength of our secondary markets. The record results across our asset classes in the first half of the year reflect strong investor engagement from both mainland China and international markets, supported by product innovation and the continued expansion of our market ecosystem.

Speaker #2: There were notable increases in the trading volumes of stock options and Hang Seng Tech Index futures and options. The LME recorded strong growth in trading activity, with chargeable average daily volumes reaching a record half-yearly high.

Speaker #2: Take ETPs as an example. ETP contributed to 17% of headline ADT in the first half. Just five years ago, in 2021, they were only contributing to about 5%.

Speaker #2: We are also continuing to broaden our commodities franchise, including products such as US dollar gold futures, where activity has reached repeated new highs.

Bonnie Y Chan: We are also continuing to broaden our commodities franchise, including in products such as USD Gold Futures, where activity has reached repeated new highs. Another example is the Shanghai Futures Exchange LME hot rolled coil futures settlement price licensing initiatives, which will support the planned launch of LME Steel HRC Shanghai and London later this year. With these initiatives, we are strengthening cross-border cooperation in commodities and helping international market participants access China-linked benchmarks for trading and risk management. Now let's look at what is driving the near-term momentum in our markets. We continue to see two complementary engines of growth. The first is capital formation. We have worked closely with regulators and market participants to enhance the attractiveness and competitiveness of our listing platform, and with partner exchanges to enhance regional connectivity to our markets.

Speaker #2: Importantly, the two engines powering our momentum—capital formation and secondary market, that is—are mutually reinforcing. A vibrant secondary market attracts issuers, while a strong pipeline of quality companies support trading activity.

Speaker #2: Another example is the Shanghai Futures Exchange-LME Hot Rolled Coil Futures settlement price licensing initiatives, which will support the planned launch of LME Steel HRC Shanghai and London later this year.

Speaker #2: Just to underscore that point, the companies that listed with us since 2025 contributed to more than 8% of the record headline ADT of the first half of this year.

Speaker #2: With these initiatives, we're strengthening cross-border cooperation in commodities and helping international market participants access China-linked benchmarks for trading and risk management. Now, let's look at what is driving the near-term momentum in our markets.

Speaker #2: We are also making strategic progress in advancing Hong Kong's FIC and commodities ecosystem. This is an important part of our multi-asset strategy. It is about giving investors more ways to access China, deploy capital, and manage risk through Hong Kong.

Speaker #2: Our most significant milestone in the first few months was the launch of five-year government bond futures, the only China government bond futures contract available in the offshore market.

Speaker #2: And with partner exchanges to enhance regional connectivity to our markets, together with sustained interest from Chinese and international issuers, this has helped build a healthy and very diverse IPO pipeline.

Bonnie Y Chan: Together with sustained interest from Chinese and international issuers, this has helped build a healthy and very diverse IPO pipeline. The pipeline spans technology, biotech, healthcare, mining, consumer, and include new economy companies, established corporates, multinational enterprises, and potential homecoming listings. We are also seeing a strong follow-on fundraising activity as listed companies continue to leverage Hong Kong as a capital raising platform. The second engine of growth is the strength of our secondary markets. The record results across our asset classes in the H1 of the year reflect strong investor engagement from both mainland China and international markets, supported by product innovation and the continued expansion of our market ecosystem. Take ETPs as an example. ETP contributed to 17% of headline ADT in the H1. Just five years ago, in 2021, they were only contributing to about 5%.

Speaker #2: Another highlight is the revitalization of our US dollar gold futures contract. This has driven a strong recovery and inactivity, with both trading volume and open interest reaching record highs.

Speaker #2: The pipeline spans technology, biotech, healthcare, mining, and consumer, and includes new economy companies, established corporates, multinational enterprises, and potential homecoming listings. We're also seeing strong follow-on fundraising activity, as listed companies continue to leverage Hong Kong as a capital-raising platform.

Speaker #2: Strong market participation supported by tighter bid-ask spreads has come from a diverse range of users. This reflects growing demand for diversified risk management tools, across both short-term trading and long-term investment strategies.

Speaker #2: Now, the second engine of growth is the strength of our secondary markets. The record results across our asset classes in the first half of the year reflect strong investor engagement from both Mainland China and international markets, supported by product innovation and the continued expansion of our market ecosystem.

Speaker #2: In our OTC clearing business, we announced plans to launch FDR 007 contracts later this year, subject to regulatory approval. This would expand our suite of RMB risk management products.

Speaker #2: We are also advancing longer-term strategic initiatives including our collaboration with CFETS on a next-generation fixed-income trading platform and assets to support the development of Hong Kong's repo market infrastructure.

Speaker #2: Take ETPs as an example. ETP contributed to 17% of headline ADT in the first half. Just five years ago, in 2021, they were only contributing about 5%.

Speaker #2: While last year was about setting our direction for FIC and commodities development, this year has been about delivering. Step by step, across products, platforms, and partnerships.

Bonnie Y Chan: Importantly, the two engines powering our momentum, capital formation and secondary market that is, are mutually reinforcing. A vibrant secondary market attracts issuers, while a strong pipeline of quality companies support trading activity. Just to underscore that point, the companies that listed with us since 2025 contributed to more than 8% of the record headline ADT of the H1 of this year. We are also making strategic progress in advancing Hong Kong's FIC and commodities ecosystem. This is an important part of our multi-asset strategy. It is about giving investors more ways to access China, deploy capital, and manage risk through Hong Kong. Our most significant milestone in the first few months was the launch of 5-Year China Government Bond Futures, the only China government bond futures contract available in the offshore market. Another highlight is the revitalization of our USD Gold Futures contract.

Speaker #2: Importantly, the two engines powering our momentum—capital formation and the secondary market—are mutually reinforcing. A vibrant secondary market attracts issuers, while a strong pipeline of quality companies supports trading activity.

Speaker #2: At the same time, we're continuing to modernize our market structure and our operational platforms, from T+1 and USM to ODP, OCP, digital payment adoption, BotLot enhancements, option strike price enhancements, and derivative markets after trading after-hours trading.

Speaker #2: Just to underscore that point, the companies that listed with us since 2025 contributed to more than 8% of the record headline ADT for the first half of this year.

Speaker #2: Global capital allocation patterns are changing, as investors seek more diversified growth and risk management opportunities. We are committed to making it as easy as possible for them to keep finding those opportunities here.

Speaker #2: At our core, we are market infrastructure, and our role is to keep improving how our markets operate and how participants experience them. So, to conclude, HKEX delivered a strong first half with record results across our market and continued progress on our strategic priorities.

Speaker #2: The market has regained its vibrancy, and our focus now is on sustaining that momentum through disciplined execution. Over the past decade, the Connect programs have transformed Hong Kong's role in the global financial system.

Speaker #2: Another highlight is the revitalization of our US dollar gold futures contract. This has driven a strong recovery in activity, with both trading volume and open interest reaching record highs.

Bonnie Y Chan: This has driven a strong recovery in activity, with both trading volume and open interest reaching record highs. Strong market participation, supported by tighter bid-ask spreads, has come from a diverse range of users. This reflects growing demand for diversified risk management tools across both short-term trading and long-term investment strategies. In our OTC clearing business, we announced plans to launch FR007 contracts later this year, subject to regulatory approval. This would expand our suite of RMB risk management products. We are also advancing longer-term strategic initiatives, including our collaboration with China Foreign Exchange Trade System on a next-generation fixed income trading platform and efforts to support the development of Hong Kong's repo market infrastructure. While last year was about setting our direction for FIC and commodities development, this year has been about delivering step by step across products, platforms, and partnerships.

Speaker #2: Creating unprecedented links between China, and international capital. We believe the next decade of connectivity, presents an even greater opportunity. As investors see broader access to opportunities across Asia, they will also require deeper liquidity, more diverse products, and increasingly sophisticated risk management tools.

Speaker #2: Strong market participation, supported by tighter bid-ask spreads, has come from a diverse range of users. This reflects growing demand for diversified risk management tools across both short-term trading and long-term investment strategies.

Speaker #2: Meeting these needs will be the next driver of capital market growth. That is why we are focused on building a vibrant multi-asset ecosystem, with equities as the core, but also spanning fixed income, currency, commodities, derivatives, indices, and data.

Speaker #2: We are also advancing longer-term strategic initiatives, including our collaboration with CFETS on a next-generation fixed income trading platform and efforts to support the development of Hong Kong's repo market infrastructure.

Speaker #2: And we are making tangible progress on this front. New FIC products, growing commodities activity, a developing index business, stronger technology platform, and practical reforms that make our markets more competitive and easier to access.

Speaker #2: While last year was about setting our direction for FIC and commodities development, this year has been about delivering—step by step, across products, platforms, and partnerships.

Speaker #2: At the same time, we're continuing to modernize our market structure and our operational platforms—from T+1 and USM to ODP, OCP, digital payment adoption, BotLot enhancements, option strike price enhancements, and derivative markets after-hours trading.

Bonnie Y Chan: At the same time, we are continuing to modernize our market structure and our operational platforms from T+1 and Uncertificated Securities Market to Orion Derivatives Platform, Orion Cash Platform, digital payment adoption, odd lot enhancements, option strike price enhancements, and derivative markets after hours trading. Global capital allocation patterns are changing as investors seek more diversified growth and risk management opportunities. We are committed to making it as easy as possible for them to keep finding those opportunities here. At our core, we are market infrastructure, and our role is to keep improving how our markets operate and how participants experience them. To conclude, HKEX delivered a strong H1 with record results across our market and continued progress on our strategic priorities. The market has regained its vibrancy, and our focus now is on sustaining that momentum through disciplined execution.

Speaker #2: Every step we take contributes to the same objective. Reinforcing Hong Kong's position as the international financial center that connects the world to the best opportunities of Asia.

Speaker #2: We remain confident in Hong Kong's future, confident in the strength of our unique growth, and confident that we can capture the opportunities that lie ahead.

Speaker #2: Finally, I would like to thank our board, regulators, market participants, and everyone at Team HKEX for their continued support and dedication. We're now happy to take your questions.

Speaker #2: Thank you.

Speaker #1: Thank you, Bonnie and Herbert, for your sharing. We'll now open the floor for questions. Operator, can you please give the audience instructions on how to raise questions either via webcast or audio?

Speaker #1: Thank you.

Speaker #3: Thank you. We will now begin the question-and-answer session. If you wish to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Speaker #2: The market has regained its vibrancy, and our focus now is on sustaining that momentum through disciplined execution. Over the past decade, the Connect Programs have transformed Hong Kong's role in the global financial system.

Speaker #3: To withdraw your question, please press star 11 again. If you wish to ask a question via the webcast, please type it into the box and click submit.

Bonnie Y Chan: Over the past decade, the Connect programs have transformed Hong Kong's role in the global financial system, creating unprecedented links between China and international capital. We believe the next decade of connectivity presents an even greater opportunity. As investors seek broader access to opportunities across Asia, they will also require deeper liquidity, more diverse products, and increasingly sophisticated risk management tools. Meeting these needs will be the next driver of capital market growth. That is why we are focused on building a vibrant multi-asset ecosystem with equities as the core, but also spanning fixed income, currency, commodities, derivatives, indices, and data. We are making tangible progress on this front. New FIC products, growing commodities activity, a developing index business, stronger technology platform, and practical reforms that make our markets more competitive and easier to access.

Speaker #2: Creating unprecedented links between China and international capital. We believe the next decade of connectivity presents an even greater opportunity. As investors see broader access to opportunities across Asia, they will also require deeper liquidity, more diverse products, and increasingly sophisticated risk management tools.

Speaker #3: We will take our first question. Your first question comes from Richard Xu from Morgan Stanley. Please go ahead. Your line is open.

Speaker #4: Thank you for the first question opportunity. First of all, congratulations on the very solid results across the board. I have two questions. One is, obviously, the policymakers in China is talking about opening further opening up the cross-border flows in the regulated channels.

Speaker #2: Meeting these needs will be the next driver of capital market growth. That is why we are focused on building a vibrant, multi-asset ecosystem, with equities as the core, but also spanning fixed income, currency, commodities, derivatives, indices, and data.

Speaker #4: I think certainly Hong Kong Stock Exchange is well positioned for that. I don't know if there's any discussions in terms of how that what other channels might be opened.

Speaker #2: And we are making tangible progress on this front: new FIC products, growing commodities activity, a developing index business, a stronger technology platform, and practical reforms that make our markets more competitive and easier to access.

Speaker #4: For example, the southbound, is that in discussion? Or whether there's could be more ETFs included in the southbound going forward as well? Or any other discussion at the moment?

Speaker #2: Every step we take contributes to the same objective: reinforcing Hong Kong's position as the international financial center that connects the world to the best opportunities of Asia.

Bonnie Y Chan: Every step we take contributes to the same objective, reinforcing Hong Kong's position as the international financial center that connects the world to the best opportunities of Asia. We remain confident in Hong Kong's future, confident in the strength of our unique growth, and confident that we can capture the opportunities that lie ahead. Finally, I would like to thank our board, regulators, market participants, and everyone at Team HKEX for their continued support and dedication. We are now happy to take your questions. Thank you.

Speaker #4: Second question is on the EPP. Certainly very solid growth in the EPP. Going forward, any other initiatives, any product that could be launched, included in that to drive continued further growth going forward?

Speaker #2: We remain confident in Hong Kong's future, confident in the strength of our unique growth, and confident that we can capture the opportunities that lie ahead.

Speaker #4: Thank you very much.

Speaker #2: Thank you, Richard, for those questions. Let me answer the first part, and then for the ETP question, perhaps Greg can give you more color.

Speaker #2: Finally, I would like to thank our Board, regulators, market participants, and everyone at Team HKEX for their continued support and dedication. We are now happy to take your questions.

Speaker #2: Now, the cross-border channels. Obviously, we are very grateful that since 12 years ago, we started the Connect program first with Stock Connect, and then over the years, we've added different products, including bonds, ETFs, interest rate swaps.

Speaker #2: Thank you.

Edward Moncreiffe: Thank you, Bonnie and Herbert, for your sharing. We will now open the floor for questions. Operator, can you please give the audience instructions on how to raise questions either via webcast or audio? Thank you.

Speaker #2: And the journey obviously there is still a long way to go. In terms of how we can augment it. And you might have picked up the news this morning.

Speaker #1: Thank you.

Speaker #3: Thank you. We will now begin the question and answer session. 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.

Operator: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 again. If you wish to ask a question via the webcast, please type it into the box and click submit. We will take our first question. Your first question comes from Richard Zhu from Morgan Stanley. Please go ahead. Your line is open.

Speaker #2: I was in Beijing yesterday, at the NFRA, and I was very happy that I was able to deliver the good progress in the sense that there was a policy announcement yesterday that insurance company on the Chinese mainland will be allowed to invest in the ETPs listed in Hong Kong through the Connect franchise.

Speaker #3: To withdraw your question, please press star 11 again. If you wish to ask a question via the webcast, please type it into the box and click Submit.

Speaker #3: We will take our first question. Your first question comes from Richard Dhu from Morgan Stanley. Please go ahead. Your line is open.

Speaker #2: We believe that that's a very major positive development. And one example, really, of how we continue to work on various ways to augment the Connect franchise.

Speaker #4: Thank you for the first question opportunity. First of all, congratulations on the very solid results across the board. I have two questions. One is, obviously, the policymakers in China are talking about further opening up the cross-border flows in the regulated channels.

Richard Zhu: Thank you for the first question opportunity. First of all, congratulations on the very solid results across the board. I have 2 questions. One is, obviously the policymakers in China is talking about further opening up the cross-border flows in the regulated channels. I think certainly HKEX is well-positioned for that. I do not know if there is any discussions in terms of what other channels might be open. For example, the southbound, is that in discussion or whether there could be more ETFs included in the southbound going forward as well? Or any other discussion at the moment? Second question is on the ETP. Certainly very solid growth in the ETP. Going forward, any other initiatives, any product could be launched included in that to drive continued further growth going forward? Thank you very much.

Richard Xu: Thank you for the first question opportunity. First of all, congratulations on the very solid results across the board. I have 2 questions. One is, obviously the policymakers in China is talking about further opening up the cross-border flows in the regulated channels. I think certainly HKEX is well-positioned for that. I do not know if there is any discussions in terms of what other channels might be open. For example, the southbound, is that in discussion or whether there could be more ETFs included in the southbound going forward as well? Or any other discussion at the moment? Second question is on the ETP. Certainly very solid growth in the ETP. Going forward, any other initiatives, any product could be launched included in that to drive continued further growth going forward? Thank you very much.

Speaker #2: Another thing that I can point to is you might recall that at the beginning of the month, on the 3rd of August, the chairman of the CSRC, Wu Qing, came to Hong Kong to celebrate the launch of our Chinese government bond futures.

Speaker #4: I think certainly the Hong Kong Stock Exchange is well positioned for that. I don't know if there's any discussion in terms of what other channels might be opened.

Speaker #4: For example, the southbound—is that in discussion, or could there be more ETFs included in the southbound going forward as well? Or any other discussions at the moment?

Speaker #2: And in his speech, he did mention a couple of things which are in flight, including REIT Connect, as well as including the southbound R&B counter.

Speaker #2: Both of which we are making good progress on. I think it's a matter of time that we hopefully will be able to announce to the market the actual rollout dates.

Speaker #4: Second question is on the EPP. Certainly, very solid growth in the EPP. Going forward, are there any other initiatives or products that could be launched or included in that to drive continued, further growth going forward?

Speaker #2: But suffice to say that it has always we've continuously and work on three aspects of developing further the Connect franchise, which is I call that the Ren Huo Tang, right?

Speaker #4: Thank you very much.

Speaker #2: Thank you, Richard, for those questions. Let me answer the first part, and then for the ETP question, perhaps Greg can give you more color.

Bonnie Y Chan: Thank you, Richard, for those questions. Let me answer the first part, and then for the ETP question, perhaps Greg can give you more color. The cross-border channels. Obviously, we are very grateful that since 12 years ago, we started the Connect program. First with Stock Connect, and then over the years, we have added different products including bonds, ETFs, interest rate swaps. The journey, obviously, there is still a long way to go in terms of how we can augment it. You might have picked up the news this morning. I was in Beijing yesterday at the National Financial Regulatory Administration, and I was very happy that I was able to deliver the good progress in the sense that there was a policy announcement yesterday that insurance company on the Chinese mainland will be allowed to invest in the ETPs listed in Hong Kong through the Connect franchise.

Speaker #2: People participants, rather, participants, products, and platform. So first of all, bringing more participants. So I think the insurance companies coming into southbound investment and ETF is a good example of including more players.

Speaker #2: Now, the cross-border channels. Obviously, we are very grateful that, since 12 years ago, we started the Connect program—first with Stock Connect, and then, over the years, we've added different products, including bonds, ETFs, and interest rate swaps.

Speaker #2: Products, and I think later when Greg gives you the answer on ETPs development, we obviously are very putting a lot of efforts into developing the 60/40 ETFs, which will be eligible for southbound investment.

Speaker #2: And the journey—obviously, there is still a long way to go in terms of how we can augment it. And you might have picked up the news this morning.

Speaker #2: I was in Beijing yesterday, at the NFRA, and I was very happy that I was able to deliver the good progress in the sense that there was a policy announcement yesterday that insurance companies on the Chinese mainland will be allowed to invest in the ETPs listed in Hong Kong through the Connect franchise.

Speaker #2: And then on the platform side, we're conscious that between the Hong Kong market and the mainland market, there are still a lot of areas we can further improve and align, like trading the trading calendar, for example, is an example of that.

Speaker #2: And we will continue to do so. So hold your breath. We will be announcing many more initiatives as and when we are ready. But maybe Greg can help answer the question on what we should expect to see in terms of development in the ETP side.

Bonnie Y Chan: We believe that that is a very major positive development, and one example really of how we continue to work on various ways to augment the Connect franchise. Another thing that I can point to is, you might recall that at the beginning of the month, on 3 August, the Chairman of the China Securities Regulatory Commission, Wu Qing, came to Hong Kong to celebrate the launch of our Chinese government bond futures. In his speech, he did mention a couple things which are in flight, including R3 Connect as well as including the southbound RMB counter, both of which we are making good progress on. I think it is a matter of time that we hopefully will be able to announce to the market the actual rollout dates.

Speaker #2: We believe that's a very significant positive development, and one example of how we continue to work in various ways to augment the Connect franchise.

Speaker #2: Another thing that I can point to is, you might recall that at the beginning of the month, on the 3rd of August, the chairman of the CSRC, Wu Qing, came to Hong Kong to celebrate the launch of our Chinese government bond futures.

Speaker #4: Okay. Yeah. So specifically on the ETF side, we've seen a strong growth in terms of the ADT over the first half of the year.

Speaker #4: It's up more than 17%. And particularly, we see strong growth with retail participation. Obviously, I think a lot of attention towards the L&I, so leverage and inverse products development.

Speaker #2: And in his speech, he did mention a couple of things which are in flight, including REIT Connect, as well as including the southbound RMB counter.

Speaker #4: And we expect that side of the products will continue to grow. And you have probably heard that the SFC side have announced that the Hong Kong underlines with certain criteria are also eligible for the development of the leverage and inverse products.

Speaker #2: Both of which we are making good progress on. I think it's a matter of time before we will hopefully be able to announce to the market the actual rollout dates.

Speaker #2: But suffice to say that we have always continuously worked on three aspects of further developing the Connect franchise, which I call the Renhuo Tang, right?

Bonnie Y Chan: But suffice to say that we have continuously worked on three aspects of developing further the Connect franchise, which is, I call that the "ren huocang," People, or participants rather, participants, products, and platform. First of all, bringing more participants. I think the insurance companies coming into southbound investment in ETF is a good example of including more players. Products. I think later when Greg gives you the answer on ETP's development, we obviously are putting a lot of efforts into developing the 60/40 ETFs, which will be eligible for southbound investments. On the platform side, we are conscious that between the Hong Kong market and the mainland market, there are still a lot of areas we can further improve and align, like the trading calendar, for example, is an example of that. We will continue to do so. Hold your breath.

Speaker #4: And then on top of that, you may also see that the covered call ETFs performance have also been strong in terms of AUM growth.

Speaker #4: So I think that is also an indication that the innovation continues to drive further turnover and also AUM development. What Bonnie mentioned with regards to the 60/40 ETFs, which is more tailored to the southbound investments, I think you will have you would have seen the development on our index side, where we have partnered up with KRX on the development of the semiconductor 60/40 index, where 60% is Hong Kong stocks, and then 40% is the Korean stocks.

Speaker #2: People, participants—rather, participants, products, and platform. So, first of all, bringing more participants. I think the insurance companies coming into southbound investment and ETFs is a good example of including more players.

Speaker #2: Products, and I think later when Greg gives you the answer on ETPs development, we obviously are putting a lot of efforts into developing the 60/40 ETFs, which will be eligible for southbound investment.

Speaker #2: And then on the platform side, we're conscious that between the Hong Kong market and the mainland market, there are still a lot of areas we can further improve and align. Trading the trading calendar, for example, is an example of that.

Speaker #4: Focusing on the semiconductor theme. Similarly, with partner up with Bursa Malaysia, which we have done a 60/40 on the overall large cap theme. And various other 60/40 indices.

Speaker #2: And we will continue to do so. So, hold your breath—we will be announcing many more initiatives as and when we are ready. But maybe Greg can help answer the question on what we should expect to see in terms of development on the ETP side.

Speaker #4: So these are the ones that will drive growth for southbound investments. Not only for retail, but now also with yesterday's announcement, we're down the road there will be more specific details in terms of the implementation.

Bonnie Y Chan: We will be announcing many more initiatives when we are ready, but maybe Greg can help answer the question on what we should expect to see in terms of development in the ETP side.

Speaker #4: We will expect that insurance company will also through the southbound Connect to invest into these ETFs. So this will be a mixture of the ETF side of the development, as well as our own index development, catering to these type of tailored or customized underlying.

Speaker #4: Okay. Yeah. So, specifically on the ETF side, we've seen strong growth in terms of the ADT over the first half of the year.

Greg Yu: Okay. Yes. Specifically on the ETF side, we have seen a strong growth in terms of the ADT over the H1 of the year. It is up more than 17%. Particularly, we see strong growth with retail participation. Obviously, I think a lot of attention towards the L&I, so Leveraged and Inverse Products development. We expect that that side of the products will continue to grow. You have probably heard that the SFC side have announced that the Hong Kong underlyings with certain criteria are also eligible for the development of the Leveraged and Inverse Products. On top of that, you may also see that the covered call ETF performance have also been strong in terms of AUM growth. I think that is also an indication that the innovation continues to drive further turnover and also AUM development.

Speaker #4: It's up more than 17%, and particularly, we see strong growth with retail participation. Obviously, I think there's a lot of attention towards L&I—that is, leverage and inverse—product development.

Speaker #4: Further to that, we will be looking to develop sector indices. Which will, again, drive ETF growth in terms of the innovation towards the products and attract further investments into the thematics.

Speaker #4: And we expect that side of the products will continue to grow. And you have probably heard that the SFC side have announced that Hong Kong underlyings, with certain criteria, are also eligible for the development of leverage and inverse products.

Speaker #4: But I also want to highlight one other ETF item that we will be looking to grow, which is the fixed income side of the ETF.

Speaker #4: And then, on top of that, you may also see that the covered call ETFs' performance has also been strong in terms of AUM growth.

Speaker #4: As the FIC market and have a good kickoff with the CGB futures, so China government bond futures, as well as our revitalization of the gold futures, we have seen a lot of institutional investors very interested in both our commodities as well as our fixed income market.

Greg Yu: What Bonnie mentioned with regards to the 60/40 ETFs, which is more tailored to the southbound investments, I think you would have seen the development on our index side where we have partnered up with Korea Exchange on the development of the semiconductor 60/40 index, where 60% is Hong Kong stocks and then 40% is the Korean stocks focusing on the semiconductor theme. Similarly, we have partnered up with Bursa Malaysia, which we have done the 60/40 on the overall large-cap theme, and various other 60/40 indices. These are the ones that will drive growth for southbound investments, not only for retail, but now also with yesterday's announcement, where down the road, there will be more specific details in terms of the implementation. We will expect that insurance company will also, through the southbound Connect, to invest into these ETFs.

Speaker #4: And so fixed income ETF naturally is a further development, which we will expect also good uptick from our institutional investor participants.

Speaker #1: Thank you, Bonnie and Greg, for your sharing. Operator, next question, please.

Speaker #5: Thank you. Please stand by. Your next question comes from Charles Zhou from UBS. Please go ahead. Your line is open.

Speaker #4: Focusing on the semiconductor theme. Similarly, with partnering up with Bursa Malaysia, we have done a 60/40 on the overall large cap theme, and various other 60/40 indices.

Speaker #6: Hello. Hi. First of all, congratulations on a very solid set of results. I believe investors are also very happy with the core business, especially on the equity side.

Speaker #4: So these are the ones that will drive growth for southbound investments—not only for retail, but now also with yesterday's announcement. Further down the road, there will be more specific details in terms of the implementation.

Speaker #6: So maybe I'm going to ask a question on your index or maybe just about the five-year CGB futures. We noticed that in early August, Hong Kong stock exchange launched its first-year CGB, China government bond futures contract.

Speaker #4: We will expect that insurance companies will also, through the Southbound Connect, invest into these ETFs. So, this will be a mixture of the ETF side of the development, as well as our own index development, catering to these types of tailored or customized underlyings.

Speaker #6: Which I believe is a landmark product. So could you please maybe discuss about the longer-term growth potential of this contract? And also the role it could play within the China fixed income derivatives markets as well as the FIC ecosystem?

Greg Yu: This will be a mixture of the ETF side of development as well as our own index development catering to these type of tailored or customized underlying. Further to that, we will be looking to develop sector indices, which will again drive ETF growth in terms of the innovation towards the products and attract further investments into the thematics. I also want to highlight one other ETF item that we will be looking to grow, which is the fixed income side of the ETF. As the FIC markets have a good kickoff with the CGB futures, so China Government Bond Futures, as well as our revitalization of the gold futures. We have seen a lot of institutional investors very interested in both our commodities as well as our fixed income market.

Speaker #6: Thanks.

Speaker #4: Further to that, we will be looking to develop sector indices, which will again drive ETF growth in terms of innovation towards the products and attract further investments into the thematics.

Speaker #2: Thank you, Charles, for the question. I would say that, first of all, this piece the five-year CGB futures is a very exciting first step.

Speaker #2: And our overall FIC strategy. We only launched it on the 3rd of August, but suffice to say that early signs are very encouraging. So I'll pass it on to Greg to maybe, first of all, give you some color as to how the momentum is building up.

Speaker #4: But I also want to highlight one other ETF item that we will be looking to grow, which is the fixed income side of the ETF.

Speaker #4: As the FIC market had a good kickoff with the CGB futures—so, China government bond futures—as well as our revitalization of the gold futures, we have seen a lot of institutional investors very interested in both our commodities as well as our fixed income market.

Speaker #2: But more importantly, how this fit into our broader FIC strategy and more on the narrower side, what else to expect in that suite of futures products.

Speaker #2: So Greg.

Speaker #4: Yes. So I think we have certainly a lot of attention from various different types of global institutional investors towards this product. So in terms of the engagement, we're seeing across the board global asset managers and large asset owners who are very interested in trading this.

Speaker #4: And so, fixed income ETF naturally is a further development, which we will expect also a good uptick from our institutional investor participants.

Greg Yu: Fixed income ETF naturally is a further development, which we will expect also good uptick from our institutional investor participants.

Speaker #1: Thank you, Bonnie and Greg, for your sharing. Please proceed with your next question.

Edward Moncreiffe: Thank you, Bonnie and Greg, for your sharing. Operator, next question please.

Speaker #3: Thank you. Please stand by. Your next question comes from Charles Zhao from UBS. Please go ahead. Your line is open.

Operator: Thank you. Please stand by. Your next question comes from Charles Lau from UBS. Please go ahead. Your line is open.

Speaker #4: In fact, we have seen over the course of just the past two weeks almost every single day, there is a new participant placing orders to test it out.

Speaker #5: Hello. Hi. First of all, congratulations on a very solid set of results. I believe investors are also very happy with the core business, especially on the equity side.

Charles Lau: Hello. Hi. First of all, congratulations on a very solid set of results. I believe investors are also very happy with the core business, especially on the equity side. Maybe I am going to ask a question on your index, or maybe just about the 5-Year CGB Futures. We noticed that in early August, HKEX launched its first-year CGB, China Government Bond futures contract, which I believe is a landmark product. Could you please maybe discuss about the longer-term growth potential of this contract and also the role it could play within the China fixed income derivatives markets as well as the FIC ecosystem? Thanks.

Charles Zhou: Hello. Hi. First of all, congratulations on a very solid set of results. I believe investors are also very happy with the core business, especially on the equity side. Maybe I am going to ask a question on your index, or maybe just about the 5-Year CGB Futures. We noticed that in early August, HKEX launched its first-year CGB, China Government Bond futures contract, which I believe is a landmark product. Could you please maybe discuss about the longer-term growth potential of this contract and also the role it could play within the China fixed income derivatives markets as well as the FIC ecosystem? Thanks.

Speaker #4: So that's actually a very strong indication that everybody is very strong interest in this. Now, this is only one contract, one tenor. Of course, it's not sufficient to say this sufficient to cover basically all sets of tenor and duration.

Speaker #5: So maybe I'm going to ask a question on your index, or maybe just about the five-year CGB futures. We noticed that in early August, the Hong Kong Stock Exchange launched its first five-year CGB—China government bond—futures contract.

Speaker #4: But of course, down the road, we would be hoping to launch other tenors as well. So to specifically highlight what does this do towards our fixed income market overall.

Speaker #5: Which I believe is a landmark product. So could you please maybe discuss the longer-term growth potential of this contract, and also the role it could play within the China fixed income derivatives markets as well as the FIC ecosystem?

Speaker #4: Basically, it's a price discovery tool on the offshore side, allowing now offshore investors to participate in the price discovery of our offshore CNH curve.

Speaker #5: Thanks.

Speaker #2: Thank you, Charles, for the question. I would say that, first of all, this piece—the five-year CGB futures—is a very exciting first step.

Vanessa Lau: Thank you, Charles, for the question. I would say that first of all, this piece, the 5-Year CGB Futures is a very exciting first step in our overall FIC strategy. We only launched it on 3 August, but suffice to say that early signs are very encouraging. I will pass it on to Greg to maybe first of all give you some color as to how the momentum is building up. But more importantly, how this fit into our broader FIC strategy and on the narrower side, what else to expect in that suite of futures products. Greg.

Bonnie Y Chan: Thank you, Charles, for the question. I would say that first of all, this piece, the 5-Year CGB Futures is a very exciting first step in our overall FIC strategy. We only launched it on 3 August, but suffice to say that early signs are very encouraging. I will pass it on to Greg to maybe first of all give you some color as to how the momentum is building up. But more importantly, how this fit into our broader FIC strategy and on the narrower side, what else to expect in that suite of futures products. Greg.

Speaker #4: With that as being a foundation of the curve, we will be able to then attract more investors to issue debt in the CNH terms in different tenors.

Speaker #2: ...and our overall FIC strategy. We only launched it on the 3rd of August, but suffice to say that early signs are very encouraging. So I'll pass it on to Greg to maybe, first of all, give you some color as to how the momentum is building up.

Speaker #4: That, in itself, is a prerequisite to build a vibrant fixed income market naturally. And with the institutional investors already participating in the futures, we would expect that when a cash bond market also further grow, the secondary market trading will also further increase.

Speaker #2: But more importantly, how does this fit into our broader FIC strategy? And on the narrower side, what else should we expect in that suite of futures products?

Speaker #4: I also want to highlight that recently we I mean, I think over the course of last year, or two years, the dim sum bond market has already grown significantly.

Speaker #2: So, Greg.

Speaker #4: Yes. So, I think we certainly have a lot of attention from various different types of global institutional investors towards this product. In terms of engagement, we're seeing interest across the board—from global asset managers to large asset owners—who are very interested in trading this.

Greg Yu: Yes. I think we have certainly a lot of attention from various different types of global institutional investors towards this product. In terms of the engagement we are seeing across the board global asset managers, and large asset owners who are very interested in trading this. In fact, we have seen over the course of just the past two weeks, almost every single day, there is a new participant placing orders to test it out. That is actually a very strong indication that everybody is very strong interest in this. Now, this is only one contract, one tenor. Of course, it is not sufficient to cover basically all sets of tenor and duration. But of course, down the road we would be hoping to launch other tenors as well. To specifically highlight what does this do towards our fixed income market overall.

Speaker #4: And there has been more and more listings of the dim sum bond market dim sum bonds in the Hong Kong exchange. And as we build out all the other various different instruments, on especially, let's say, on the trading platform and so forth, we are definitely pushing more towards liquidity into the fixed income market, coupled with our OTC clearing efforts as well.

Speaker #4: In fact, we have seen, over the course of just the past two weeks, that almost every single day there is a new participant placing orders to test it out.

Speaker #4: So I think overall, the development of the fixed income step by step is there. We're getting a lot of attention from global investors. But this is basically the first very small step, if you will, that is.

Speaker #4: So that's actually a very strong indication that everybody has very strong interest in this. Now, this is only one contract, one tenor. Of course, it's not sufficient to say this is sufficient to cover basically all sets of tenors and durations.

Speaker #4: But at the same time, it is a very significant milestone.

Speaker #2: I would supplement by saying that you will see more activity from us in terms of the CGB ecosystem. We are going to open up our two biggest clearinghouses futures and options clearinghouses to accept CGB as collateral.

Speaker #4: But of course, down the road, we would be hoping to launch other tenors as well. So, to specifically highlight what this does for our fixed income market overall...

Speaker #2: This is going to happen before the end of the year. That will give a very good reason for investors to hold the paper, to hold CGB.

Speaker #4: Basically, it's a price discovery tool on the offshore side, allowing offshore investors to participate in the price discovery of our offshore CNH curve.

Greg Yu: Basically it is a price discovery tool on the offshore side, allowing now offshore investors to participate in the price discovery of our offshore CNH curve. With that as being a foundation of the curve, we will be able to then attract more investors to issue debt in the CNH terms in different tenors. That in itself is a prerequisite to build a vibrant fixed income market naturally. With the institutional investors already participating in the futures, we would expect that when the cash bond market also further grow, the secondary market trading will also further increase. I also want to highlight that recently, I think over the course of last year or two years, the Dim sum bond market has already grown significantly and there has been more and more listings of the Dim sum bonds in the Hong Kong exchange.

Speaker #2: Place it as collateral. And we're also exploring the how we build a vibrant repo market. So all of that to come. Of course, one step at a time, subject to regulatory approval.

Speaker #4: With that as a foundation of the curve, we will then be able to attract more investors to issue debt in CNH terms, in different tenors.

Speaker #1: Great. Thank you, Bonnie, Greg, and Vanessa. Operator, next question, please.

Speaker #5: Thank you. We will take our next question. Your question comes from the line of Gary Lam from HSBC. Please go ahead. Your line is

Speaker #4: That, in itself, is a prerequisite to build a vibrant fixed income market naturally. And with the institutional investors already participating in the futures, we would expect that when the cash bond market also further grows, the secondary market trading will also further increase.

Speaker #6: Thank you, Edward and management team. Two questions here I may. Firstly, I know that the Northbound ADT and the Northbound contribution to revenue improved very significantly in the first half.

Speaker #4: I also want to highlight that recently we—I mean, I think over the course of the last year or two—the dim sum bond market has already grown significantly.

Speaker #6: Can we better understand from management perspective the underlying drivers? I think two Hong Kong exchange Northbound as a percentage of Asian market turnover over time that has also improved as well.

Speaker #6: Are there some work that the exchange has been doing? Or some sort of further expansion potential to capture those related revenue? That's question number one.

Greg Yu: As we build out all the other various different instruments, especially, let's say, on the trading platform and so forth, we are definitely pushing more towards liquidity into the fixed income market coupled with our OTC clearing efforts as well. I think overall, the development of the fixed income step-by-step is there. We are getting a lot of attention from global investors. This is basically the first very small step, if you will. At the same time is a very significant milestone.

Speaker #6: Question number two, I again, I take note that the IPO momentum has been very strong. But in terms of the active application number, it fell slightly from something like mid 500 to high 400.

Speaker #4: So I think, overall, the development of fixed income, step by step, is there. We're getting a lot of attention from global investors. But this is basically the first very small step, if you will.

Speaker #6: I was trying to understand the underlying reasons. Are there some maybe companies without sufficient quality, like restoring the applications? Are these like being absorbed by the listing due to date?

Speaker #6: Or I'm not sure whether technically when there is more IPO coming through the confidential channels, will it be taken away from the sort of like known active application numbers?

Speaker #4: But at the same time, it is a very significant milestone.

Speaker #2: I would supplement by saying that you will see more activity from us in terms of the CGB ecosystem. We are going to open up our two biggest clearinghouses—futures and options clearinghouses—to accept CGB as collateral.

Vanessa Lau: I would supplement by saying that you will see more activity from us in terms of the CGB ecosystem. We are going to open up our two biggest clearing houses, futures and options clearing houses, to accept CGB as collateral. This is going to happen before the end of the year. That will give a very good reason for investors to hold the paper, to hold CGB, place it as collateral. We are also exploring how we build a vibrant repo market. All of that to come. Of course, one step at a time, subject to regulatory approval.

Speaker #6: Yeah, thanks for that.

Speaker #5: Thank you, Gary. OK, I'll answer your second question first, and touch on your first one, and maybe my colleagues would also chime in on the first one.

Speaker #2: This is going to happen before the end of the year. That will give a very good reason for investors to hold the paper, to hold CGB.

Speaker #5: So I mean, you mentioned 500 or high 400. I mean, first of all, it's conversion into real listings, right? That will take the numbers down because their applications and we manage to list them, then they're no longer counted in the application number.

Speaker #2: Place it as collateral, and we're also exploring how we build a vibrant repo market. So, all of that to come. Of course, one step at a time, subject to regulatory approval.

Speaker #5: And you know that year to date, we have already completed over 100 IPOs, but we should be spending at 105, I think, today. Total fundraise has already exceeded the total full year 2025.

Speaker #1: Great. Thank you, Bonnie, Greg, and Vanessa. Operator, your next question.

Edward Moncreiffe: Great. Thank you Bonnie, Greg, and Vanessa. Operator, next question please.

Speaker #3: Thank you. We will take our next question. Your question comes from the line of Gary Lam from HSBC. Please go ahead, your line is open.

Operator: Thank you. We will take our next question. Your question comes from the line of Gary Lam from HSBC. Please go ahead. Your line is open.

Speaker #5: We are at 41 billion US dollars total fundraise. Compared to 37.5 for the full year last year. So there's a lot of conversion from applications into real listings.

Speaker #5: Thank you, Edward and management team. I have two questions. Firstly, I know that the Northbound ADT and the Northbound contribution to revenue improved very significantly in the first half.

Gary Lam: Thank you Edward and management team. Two questions. Firstly, I know that the northbound ADT and the northbound contribution to revenue improved very significantly in H1. Can we better understand from management perspective the underlying drivers? I think through HKEX northbound as a percentage of A-share market turnover, over time, that has also improved as well. Are there some work that the exchange has been doing or some sort of further expansion potential to capture those related revenue? That's question number one. Question number two, I took note that the IPO momentum has been very strong. But in terms of the active application number, it fell slightly from mid 500 to high 400. Just trying to understand the underlying reasons. Are there some maybe companies without sufficient quality restoring the applications? Are these being absorbed by the listing year-to-date?

Speaker #5: But regardless, I think at a few hundred, it is a high number. And I would say that from my day to day interaction with potential listing applicants, the interest remained very strong.

Speaker #5: Can we better understand, from a management perspective, the underlying drivers? I think, too, Hong Kong Exchange Northbound as a percentage of Asian market turnover, over time, has also improved as well.

Speaker #5: Very, very strong. So I really do not think we should be too obsessed with sort of whether it's 500 lower 500 or high 400s.

Speaker #5: Is there any work that the Exchange has been doing, or is there some potential for further expansion to capture those related revenues? That's question number one.

Speaker #5: I can on a very generalized level assure you that the interest has not waned. All right. Your first question on Northbound. Yeah, indeed. Northbound has ADT has improved quite significantly.

Speaker #5: Question number two: Again, I take note that the IPO momentum has been very strong. But in terms of the active application number, it fell slightly from the mid-500s to the high 400s.

Speaker #5: Last year, you recall that the ADT for 2025 was 212 billion RMB. I think year to date, we're probably at 340. But for the last month, there weren't many trading days we saw the number at above 400.

Speaker #5: Trying to understand the underlying reasons—are there maybe some companies without sufficient quality, like restoring the applications? Are these being absorbed by the listing due to date, or I'm not sure whether technically, when there's more IPO coming through the confidential channels, will that be taken away from the sort of known active application numbers?

Gary Lam: Or, I'm not sure whether technically, when there is more IPO coming through the confidential channels, will it be taken away from the known active application numbers? Yeah. Thanks for that.

Speaker #5: So on a very general level, I think it really basically illustrates the point that the rest of the world is more interested to trade Asia, which is a good thing.

Speaker #5: Yeah, thanks for that.

Speaker #3: Thank you, Gary. OK, I'll answer your second question first and touch on your first one, and maybe my colleagues would also chime in on the first one.

Speaker #5: I think on a very high level. But if you look into it, I also feel that if you think about the Asia market over the last 12 months, the vibrancy has also returned, right?

Bonnie Y Chan: Thank you, Gary. I'll answer your second question first then touch on your first one, then maybe my colleagues would also chime in on the first one. You mentioned 500 or high 400. First of all, it's conversion into real listings, right? That will take the number down because if there are applications and we manage to list them, then they're no longer counted in the application number. And you know that year-to-date, we have already completed over 100 IPOs. We should be standing at 105, I think, today. Total fundraise has already exceeded the total full year 2025. We are at HKD 41 billion total fundraise compared to HKD 37.5 for the full year last year. So there's a lot of conversion from applications into real listings. But regardless, I think at a few hundred, it is a high number.

Speaker #3: So, I mean, you mentioned 500 or high 400. I mean, first of all, it's conversion into real listings, right? That will take the numbers down because the applications—when we manage to list them, then they're no longer counted in the application number.

Speaker #5: So there are many, many days when the Asian market was trading at sort of the trillions. Well, 3 trillion even. And so that certainly a vibrant market certainly will drive a lot of these Northbound activity.

Speaker #3: And you know, year to date, we have already completed over 100 IPOs. We should be standing at 105, I think, today. Total fundraise has already exceeded the total for the full year 2025.

Speaker #5: I don't know for sure, but you also would notice that recently there have been a few rather high profile IPOs on the Asia market, which has yet to be included in the Connect program for Northbound trading.

Speaker #3: We are at $41 billion US dollars in total fundraising, compared to $37.5 billion for the full year last year. So there's a lot of conversion from applications into real listings.

Speaker #3: But regardless, I think a few hundred is a high number. And I would say that from my day-to-day interaction with potential listing applicants, the interest remains very strong.

Speaker #5: So with those eventually being included, I think that will provide even sort of more catalyst for to sustain the high level of Northbound trading.

Bonnie Y Chan: And I would say that from my day-to-day interaction with potential listing applicants, the interest remained very strong. Very, very strong. So I really do not think we should be too obsessed with whether it's low 500 or high 400. I can, on a very generalized level, assure you that the interest has not waned. All right. Your first question on northbound. Yeah, indeed. Northbound ADT has improved quite significantly. Last year, you recall that the ADT for 2025 was 212 billion RMB. I think year-to-date, we're probably at 340. But for the last month, there weren't many trading days we saw the number at above 400. So on a very general level, I think it really basically illustrates the point that the rest of the world is more interested to trade A-share, which is a good thing, I think, on a very high level.

Speaker #3: Very, very strong. So I really do not think we should be too obsessed with whether it's 500, lower 500, or high 400s.

Speaker #5: But Herbert would like to add something. Yeah.

Speaker #3: OK, so.

Speaker #6: Just to supplement the other potential reason for the almost doubling in the Northbound ADT is the number of eligible stocks expanded by about 20%.

Speaker #3: I can, on a very general level, assure you that the interest has not waned. All right. Your first question on Northbound—yes, indeed, Northbound's ADT has improved quite significantly.

Speaker #6: So that's probably a reason to that. And as to the market share in the Asia domestic market, I think colleagues have been working really hard to really trying to reduce frictions and increase competitiveness of the Northbound Connect channel.

Speaker #3: Last year, you recall that the ADT for 2025 was RMB 212 billion. I think year to date, we're probably at RMB 340 billion. But for the last month, there weren't many trading days; we saw the number at above RMB 400 billion.

Speaker #6: And that would certainly help in raising the overall trading volume of Northbound.

Speaker #3: So, on a very general level, I think it really basically illustrates the point that the rest of the world is more interested to trade Asia, which is a good thing.

Speaker #1: Thank you, Bonnie and Herbert. Operator, next question, please.

Speaker #5: Thank you. We will take our next question. The question comes from Michael Zhang from Citi. Please go ahead. Your line is open.

Speaker #3: I think, on a very high level, if you look into it, I also feel that if you think about the Asia market over the last 12 months, the vibrancy has also returned, right?

Bonnie Y Chan: But if you look into it, I also feel that if you think about the A-share market over the last 12 months, the vibrancy has also returned, right? So there are many, many days when the A-share market was trading at sort of the trillions, or 3 trillion even. So that certainly, a vibrant market certainly will drive a lot of these northbound activity. I do not know for sure, but you also would notice that recently there have been a few rather high-profile IPOs on the A-share market, which has yet to be included in the Connect program for northbound trading. So with those eventually being included, I think that will provide even more catalyst to sustain the high level of northbound trading. But Herbert would like to add something. Yeah.

Speaker #6: Hi, thanks, management, for taking my question. I have two questions, if I may. The first question is just about the impact from NASDAQ 24-hour trading and how do you think that will impact Asia our liquidity?

Speaker #3: So, there are many, many days when the Asian market was trading at sort of the trillions—well, $3 trillion, even. And so, that's certainly a vibrant market and certainly will drive a lot of this Northbound activity.

Speaker #6: And how could the Hong Kong exchange respond to that? Is it considered changing the trading hours? And then the second question, I think, is just a follow-up on the IPO market.

Speaker #6: There's Asia IPO has kind of normalized, and it is a month. How could you see the competition for IPOs between the Asia and Asia?

Speaker #3: I don't know for sure, but you also would notice that recently there have been a few rather high-profile IPOs on the Asia market, which has yet to be included in the Connect program for northbound trading.

Speaker #6: Because obviously, a lot of the IPOs coming from the AHD listings, do you think the interest for AHD listing remains solid at the moment?

Speaker #3: So with those eventually being included, I think that will provide even more of a catalyst to sustain the high level of Northbound trading.

Speaker #6: Thank you.

Speaker #5: I'll let Vanessa answer the first question, and then I'll address the question on the A and H list. I'm sorry, the line was a little soft, but I believe you were asking about A and H listing.

Speaker #3: But Herbert would like to add something. Yeah.

Speaker #5: OK, so Vanessa, go first.

Speaker #4: OK, so.

Herbert Hui: Okay. So just to supplement, the other potential reason for the almost doubling in the northbound ADT is the number of eligible stocks expanded by about 20%. So that is probably a reason to that. And as to the market share in the A-share domestic market, I think colleagues have been working really hard to really trying to reduce frictions and increase the competitiveness of the northbound Connect channel, and that would certainly help in raising the overall trading volume of northbound.

Speaker #5: Just to supplement, another potential reason for the almost doubling in the northbound ADT is that the number of eligible stocks expanded by about 20%.

Speaker #2: Thank you. Thank you, Michael, for your question. Extending trading hours, the way we look at it is that over time, we want to continue to improve market accessibility.

Speaker #2: That is really the key principle. Not necessarily the longer hours, the better. And you have seen that we have made a significant progress over the last few years.

Speaker #5: So that's probably a reason for that. And as to the market share in the Asia domestic market, I think colleagues have been working really hard to reduce frictions and increase the competitiveness of the Northbound Connect channel.

Speaker #2: And I can mention some examples, like the Connect synchronizing the Connect trading holidays added another 10 or so trading days each year. Of course, we have the severe weather trading.

Speaker #5: And that would certainly help in raising the overall trading volume of Northbound.

Speaker #2: Hong Kong does have its typhoon, so in 2025, we had seven extra trading days. And each day, it was trading over 220 billion Hong Kong dollars.

Speaker #1: Thank you, Bonnie and Herbert. Operator, next question, please.

Gary Lam: Thank you, Bonnie and Herbert. Operator, next question, please.

Edward Moncreiffe: Thank you, Bonnie and Herbert. Operator, next question, please.

Speaker #3: Thank you. We will take our next question. The question comes from Michael Zhang from Citi. Please go ahead. Your line is open.

Operator: Thank you. We will take our next question. The question comes from Michael Zhang from Citi. Please go ahead. Your line is open.

Speaker #2: Now, the next development is likely to be in the derivatives after-hours trading. As you know, we already extended this once back in 2019 by two hours to currently closing at 3:00 a.m.

Speaker #5: Hi, thanks, management, for taking my question. I have two questions, if I may. The first question is just about the impact from NASDAQ 24-hour trading, and how do you think that will impact Asia or our liquidity?

Michael Zhang: Hi. Thanks, management, for taking my question. I have two questions, if I may. The first question is just about the impact from NASDAQ 24-hour trading, and how do you think that will impact Asia hour liquidity? How could the Hong Kong Exchange respond to that if we consider changing the trading hours? The second question, I think, is just a follow-up on the IPO market. This A-share IPO has kind of normalized in recent months. How do you see the competition for IPOs between the A-share and H-share? Because obviously, a lot of the IPOs coming from the H-share listings. Do you think the interest for H-share listing remains solid at the moment? Thank you.

Speaker #2: Hong Kong time. We are looking to extend that to cover the US time zone closing. Another couple of hours could make a huge difference if you look at how much what percentage of trading volumes happen in the closing auctions.

Speaker #5: And how could the Hong Kong Exchange respond to that? Is it considering changing the trading hours? And then the second question, I think, is just a follow-up on the IPO market.

Speaker #2: So we will be looking at mainly derivatives extension to start with. In terms of the cash market, yes, we noticed the headlines on 24/7, 23/5, and other is is it really going to improve the market accessibility and who are we trying to attract to come to Hong Kong?

Speaker #5: Asia IPO has kind of normalized, and it has been a month. How do you see the competition for IPOs between Asia and Asia?

Speaker #5: Because, obviously, a lot of the IPOs come from the AHD listings. Do you think the interest for AHD listings remains solid at the moment?

Speaker #2: And is our actually is our market actually ready? Our participants, our banks, our custodians, et cetera? There are, of course, a number of challenges if you keep extending, could you have thinner liquidity?

Speaker #5: Thank you.

Speaker #3: I'll let Vanessa answer the first question, and then I'll address the question on the A and H list. I'm sorry, the line was a little soft, but I believe you were asking about A and H listing.

Bonnie Y Chan: I will let Vanessa answer the first question, and then I will address the question on the A and H list. I am sorry, the line was a little soft, but I believe you were asking about A and H listings. Okay. So Vanessa, go for it.

Speaker #2: Could you have bid-ask spread that's not as tight? So we need to have a lot more considerations in terms of the cash market extension of hours.

Speaker #3: OK, so Vanessa, go first.

Speaker #2: Thank you. Thank you, Michael, for your question. Regarding extending trading hours, the way we look at it is that, over time, we want to continue to improve market accessibility.

Vanessa Lau: Thank you. Thank you, Michael, for your question. Extending trading hours, the way we look at it is that over time, we want to continue to improve market accessibility. That is really the key principle, not necessarily the longer hours, the better. You have seen that we have made significant progress over the last few years, and I can mention some examples, like synchronizing the Connect trading holidays added another 10 or so trading days each year. Of course, we have the severe weather trading. Hong Kong does have its typhoons, so in 2025, we had seven extra trading days, and each day, it was trading over 220 billion HKD. The next development is likely to be in the derivatives after-hours trading. As you know, we already extended this once back in 2019 by two hours to currently closing at 3:00 AM Hong Kong time.

Speaker #2: We will continue to listen to market feedback and we will tune accordingly. But I think in terms of infrastructure, we are definitely getting ourselves ready you would have seen that with our Orion derivatives platform, Orion cash platform, we are technically ready for much longer hours.

Speaker #2: That is really the key principle: not necessarily the longer hours, the better. And you have seen that we have made significant progress over the last few years.

Speaker #2: And I can mention some examples, like Connect synchronizing the Connect trading holidays, which added another 10 or so trading days each year. Of course, we have the severe weather trading.

Speaker #2: In fact, ODP brings us to technically 24-hour trading. So we don't want to fall behind on infrastructure, and we're not. We are definitely on par there.

Speaker #2: Hong Kong does have its typhoons. So in 2025, we had seven extra trading days, and each day, it was trading over HK$220 billion.

Speaker #2: It's just the market readiness and what we think would be the most appropriate for the Hong Kong market in terms of accessibility.

Speaker #5: All right, then back to your question about A and H. Thanks. So this is, I think, how I look at it. I think oftentimes, people have this impression that the H share market, the Hong Kong market, is competing with the A share market on IPOs.

Speaker #2: Now, the next development is likely to be in derivatives after-hours trading. As you know, we already extended this once back in 2019 by two hours, so it currently closes at 3:00 a.m.

Speaker #2: Hong Kong time. We are looking to extend that to cover the US time zone closing. Another couple of hours could make a huge difference if you look at what percentage of trading volumes happens in the closing auctions.

Speaker #5: So there's some sort of cannibalization, if you may. I actually look at those two markets as being highly, highly complementary. And why do I say that?

Vanessa Lau: We are looking to extend that to cover the US time zone closing. Another couple of hours could make a huge difference if you look at what percentage of trading volumes happen in the closing auction. So we will be looking at mainly derivatives extension to start with. In terms of the cash market, yes, we noticed the headlines on 24/7, 23/5 in other regions. What we look at is it really going to improve the market accessibility, and who are we trying to attract to come to Hong Kong? Is our market actually ready? Our participants, our banks, our custodians, et cetera. There are, of course, a number of challenges. If you keep extending, could you have thinner liquidity? Could you have bid-ask spread that is not as tight? So we need to have a lot more considerations in terms of the cash market extension of hours.

Speaker #5: Now, if you look at the recent vintage of company seeking a listing from the Chinese mainland in particular, a lot of them are in areas or in sectors where which require huge amount of capital expenditure to sustain the growth, right?

Speaker #2: So, we will be looking at many derivatives extensions to start with. In terms of the cash market, yes, we noticed the headlines on 24/7, 23/5, and other regions. What we look at is: is it really going to improve market accessibility, and who are we trying to attract to come to Hong Kong?

Speaker #5: Be it semiconductor, be it robotics, be it AI, large language models, it is capital intensive. And therefore, at the top of the minds of these companies executives, what they need is to make sure that they have access to a big shareholder base and a very deep and effective capital raising platform.

Speaker #2: And is our market actually ready? Are our participants, our banks, our custodians, et cetera? There are, of course, a number of challenges. If you keep extending, you could have thinner liquidity.

Speaker #5: And therefore, in fact, I think if you look back into the last two years, it has become somewhat fashionable, even, for companies to seek a listing on both markets.

Speaker #2: Could you have bid-ask spreads that are not as tight? So, we need to have a lot more considerations in terms of the cash market extension of hours.

Speaker #5: It's more a matter of sequencing whether they start with an A share listing and then come to H share and more recently, we are seeing examples of H share companies going back to the mainland Hui, right?

Speaker #2: We will continue to listen to market feedback, and we will tune accordingly. But I think, in terms of infrastructure, we are definitely getting ourselves ready. You would have seen that with our Orion Derivatives Platform and Orion Cash Platform—we are technically ready for much longer hours.

Vanessa Lau: We will continue to listen to market feedback, and we will tune accordingly. But I think in terms of infrastructure, we are definitely getting ourselves ready. You would have seen that with our Orion Derivatives Platform, Orion Cash Platform, we are technically ready for much longer hours. In fact, ODP brings us to technically 24-hour trading. We don't want to fall behind on infrastructure, and we're not. We are definitely on par there. It's just the market readiness and what we think would be the most appropriate for the Hong Kong market in terms of accessibility.

Speaker #5: Regardless of whether it's A to H, H to A, what we see and this has been illustrated deal after deal, whether it is CATL, whether it's most recently Innolight, having a listing on both markets really maximize that reach to investors and, more importantly, I think Hong Kong does have a strength in follow-on fundraising.

Speaker #2: In fact, ODP brings us to technically 24-hour trading. So we don't want to fall behind on infrastructure, and we're not—we are definitely on par there.

Speaker #2: It's just the market readiness, and what we think would be the most appropriate for the Hong Kong market in terms of accessibility.

Speaker #5: I mentioned earlier the IPO fundraise. But I would also share with you that year to date, our follow-on fundraising that's listed company tapping the capital markets for fundraising we have already reached over 50 billion US total full year of 66 billion US dollars last last year's record.

Speaker #3: All right, then back to your question about A and H. Thanks. So, this is, I think, how I look at it. I think, oftentimes, people have this impression that the H-share market—the Hong Kong market—is competing with the A-share market on IPOs.

Bonnie Y Chan: Then back to your question about A and H things. This is, I think, how I look at it. I think oftentimes people have this impression that the H-share market, the Hong Kong market, is competing with the A-share market on IPOs. So there's some sort of cannibalization, if you may. I actually look at those two markets as being highly complementary. Why do I say that? If you look at the recent vintage of companies seeking a listing from the Chinese mainland in particular, a lot of them are in areas or in sectors which require huge amount of capital expenditure to sustain the growth, right? Be it semiconductor, be it robotics, be it AI, large language models. It is capital intensive.

Speaker #3: So there's some sort of cannibalization, if you may. I actually look at those two markets as being highly, highly complementary. And why do I say that?

Speaker #5: And the more I look at this vintage of companies, I really do think that we should see we should expect to see a continuous trend of A and H listing.

Speaker #3: Now, if you look at the recent vintage of companies seeking a listing from the Chinese mainland in particular, a lot of them are in areas or in sectors which require a huge amount of capital expenditure to sustain the growth, right?

Speaker #5: And this, by the way, I do recall when Chairman Wu Qing of CSLC, when he came to Hong Kong on the 3rd of August to participate in one of our events, in his speech, I think he mentioned 10 different measures.

Speaker #3: Be it semiconductor, be it robotics, be it AI, large language models—these are all capital intensive. And therefore, at the top of the minds of these companies' executives, what they need is to make sure that they have access to a big shareholder base and a very deep and effective capital raising platform.

Bonnie Y Chan: Therefore, at the top of the minds of these companies' executives, what they need is to make sure that they have access to a big shareholder base and a very deep and effective capital-raising platform. Therefore, in fact, I think if you look back into the last two years, it has become somewhat fashionable even for companies to seek a listing on both markets. It's more a matter of sequencing, whether they start with an A-share listing and then come to H-share. More recently, we are seeing examples of H-share companies going back to the mainland, 回A, right? Regardless of whether it's A to H to A, what we see, and this has been illustrated deal after deal, whether it is CATL, whether it's most recently InnerLight, having a listing on both markets really maximize that reach to investors.

Speaker #5: The first one was about these two-way flow, right, in terms of encouraging companies in the mainland to continue to seek a listing in Hong Kong and also 5Z first, right, for Hong Kong listed companies to go back to the mainland.

Speaker #3: And therefore, in fact, I think if you look back at the last two years, it has become somewhat fashionable—even—for companies to seek a listing on both markets.

Speaker #5: So there is some sort of regulatory reassurance there. Last point I want to make on this topic is, aside from A and H, if the worry is somehow there is cannibalization, please do note that we are also seeing good momentum in terms of attracting non-Chinese companies to list on our market.

Speaker #3: It's more a matter of sequencing—whether they start with an A-share listing and then come to H-share. And more recently, we are seeing examples of H-share companies going back to the mainland Hui, right?

Speaker #3: Regardless of whether it’s A to H or H to A, what we see—and this has been illustrated deal after deal, whether it is CATL or, most recently, Innolite—is that having a listing on both markets really maximizes that reach to investors. More importantly, I think Hong Kong does have a strength in follow-on fundraising.

Speaker #5: So most recently, you would be aware that we listed Medica, which is an Indonesian listed gold mining company. They did a secondary listing, actually, in the form of HDL in our market hasn't happened for a long time.

Speaker #5: But raised they raised 300 million US dollars very successful. Their overall liquidity improved. And I think Hong Kong might even be trading at a premium to IDX.

Bonnie Y Chan: More importantly, I think Hong Kong does have a strength in follow-on fundraising. I mentioned earlier the IPO fundraise, but I would also share with you that year to date, our follow-on fundraising, that's listed company tapping the capital markets for fundraising, we have already reached over $50 billion US compared to a total full year of $66 billion US last year. So we are on good track to beat last year's record. The more I look at this vintage of companies, I really do think that we should expect to see a continuous trend of A+H listings. This, by the way, I do recall when Chairman Wu Qing of China Securities Regulatory Commission, when he came to Hong Kong on 3 August to participate in one of our events. In his speech, I think he mentioned 10 different measures.

Speaker #3: I mentioned earlier the IPO fundraise. But I would also share with you that year to date, our follow-on fundraising that's listed company tapping the capital markets for fundraising we have already reached over 50 billion US dollars compared to a total full year of 66 billion US dollars last year.

Speaker #5: And in the pipeline, we have about 10 of these non-Chinese companies from a good mixture of different jurisdictions. So that's another way we can continue to build our very robust IPO pipeline.

Speaker #3: So we are on a good track to beat last year's record. And the more I look at this vintage of companies, I really do think that we should expect to see a continuous trend of A and H listing.

Speaker #1: Thank you, Bonnie and Vanessa. With that, this marks the end of today's session. Thank you, everyone, for joining us today. We look forward to continuing our engagement and conversations with you.

Speaker #3: And this, by the way, I do recall when Chairman Wu Qing of CSLC, when he came to Hong Kong on the 3rd of August to participate in one of our events. In his speech, I think he mentioned ten different measures.

Speaker #3: The first one was about this two-way flow, right, in terms of encouraging companies on the mainland to continue to seek a listing in Hong Kong, and also, vice versa, right, for Hong Kong-listed companies to go back to the mainland.

Bonnie Y Chan: The first one was about these two-way flow, right, in terms of encouraging companies in the mainland to continue to seek a listing in Hong Kong, and also vice versa, right, for Hong Kong-listed companies to go back to the mainland. So there is some sort of regulatory reassurance there. Last point I want to make on this topic is, aside from A+H, if the worry is somehow there is cannibalization, please do note that we are also seeing good momentum in terms of attracting non-Chinese companies to list on our market. Most recently, you would be aware that we listed Merdeka, which is an Indonesian-listed gold mining company. They did a secondary listing, actually, in the form of HDR in our market. Hasn't happened for a long time, but they raised $300 million. Very successful.

Speaker #3: So, there is some sort of regulatory reassurance there. Last point I want to make on this topic is, aside from A and H, if the worry is somehow there is cannibalization, please do note that we are also seeing good momentum in terms of attracting non-Chinese companies to list on our market.

Speaker #3: So, most recently, you would be aware that we listed Medica, which is an Indonesian-listed gold mining company. They did a secondary listing, actually, in the form of HDR on our market. That hasn't happened for a long time.

Speaker #3: But they raised $300 million—very successful. Their overall liquidity improved, and I think Hong Kong might even be trading at a premium to IDX.

Bonnie Y Chan: Their overall liquidity improved, and I think Hong Kong might even be trading at a premium to IDX. In the pipeline, we have about 10 of these non-Chinese companies from a good mixture of different jurisdictions. That's another way we can continue to build our very robust IPO pipeline.

Speaker #3: And in the pipeline, we have about 10 of these non-Chinese companies from a good mixture of different jurisdictions. So that's another way we can continue to build our very robust IPO pipeline.

Edward Moncreiffe: Thank you, Bonnie and Vanessa. With that, this marks the end of today's session. Thank you, everyone, for joining us today. We look forward to continuing our engagement and conversations with you. Please reach out to us for any follow-up questions. Have a good evening.