Q & A Highlights

Q: What are the key drivers behind the record financial performance in the first half of 2026, and what is the outlook for the second half? A: Group CFO Herbert Hui reported that HKEX delivered its best-ever half-yearly revenue and profit, with revenue and other income up 19% year-on-year to HKD16.7 billion and profit after tax up 24% to HKD10.6 billion. This was driven by record half-yearly highs in cash market, derivatives, and Stock Connect trading volumes, fueled by renewed global investor interest in Chinese Mainland technology and AI-related stocks. However, net investment income is expected to continue to be affected in the second half by revised margin collateral arrangements, fluctuating margin fund sizes, and movements in Hong Kong dollar interest rates.

Q: What is the significance of the recent policy announcement allowing Chinese Mainland insurance companies to invest in Hong Kong-listed ETFs via Stock Connect? A: CEO Bonnie Y Chan highlighted this as a major positive development for augmenting the Connect franchise. She explained that the exchange is continuously working on three aspects of the Connect program: expanding participants (with insurance companies being a prime example), adding products (such as the 60-40 ETFs), and improving the platform (including trading calendar synchronization). She also noted progress on other initiatives mentioned by CSRC Chairman Wu Qing, including REIT Connect and the Southbound RMB counter.

Q: What is the longer-term growth potential of the newly launched 5-year China government bond (CGB) futures contract? A: Head of Markets Gregory Yu described the launch as a "very significant milestone" and the first step in the FIC strategy. He noted strong interest from global institutional investors, with new participants testing the product daily. The contract provides offshore price discovery for the CNH curve, which is a prerequisite for building a vibrant fixed income market. Co-COO Vanessa Lau added that HKEX will open its two biggest clearing houses to accept CGB as collateral before year-end and is exploring building a repo market, which will further support the ecosystem.

Q: How is HKEX responding to the trend of extended trading hours, such as Nasdaq's 24-hour trading, and will it change its own trading hours? A: Co-COO Vanessa Lau stated that the key principle is improving market accessibility, not necessarily having longer hours. While the exchange is technically ready for 24-hour trading with its new Orion platforms, it is being cautious about extending cash market hours due to concerns about thinner liquidity and wider bid-ask spreads. The next development will likely be extending derivatives after-hours trading to cover the U.S. time zone closing, as a significant portion of trading volumes occur in closing auctions.

Q: What is driving the significant growth in Northbound Stock Connect trading volumes? A: CEO Bonnie Y Chan attributed the growth to a renewed vibrancy in the A-share market itself, which has attracted more global interest. CFO Herbert Hui supplemented this by noting that the number of eligible stocks in the Connect program expanded by about 20%, and that HKEX has been working to reduce frictions and increase the competitiveness of the Northbound channel. Chan also pointed to upcoming catalysts, such as high-profile A-share IPOs that have yet to be included in the Connect program.

Q: How does HKEX view the competition for IPOs between the A-share and H-share markets, and does the interest in A+H listings remain solid? A: CEO Bonnie Y Chan reframed the dynamic as highly complementary rather than competitive, noting that capital-intensive companies in sectors like semiconductors and AI benefit from accessing both markets. She cited examples like CATL and Innolight, and noted that follow-on fundraising has already exceeded USD50 billion year-to-date, on track to beat last year's record. She also highlighted regulatory reassurance from CSRC Chairman Wu Qing on encouraging two-way flows, and pointed to growing momentum in attracting non-Chinese companies, with about 10 such companies in the pipeline.

Q: What are the key drivers and future initiatives for the strong growth in the ETP (Exchange Traded Products) market? A: Head of Markets Gregory Yu noted that ETPs now contribute 17% of headline ADT, up from 5% five years ago. Growth is being driven by leverage and inverse products, covered call ETFs, and the development of 60-40 ETFs tailored for Southbound investments, such as the semiconductor index partnership with KRX and the large-cap index with Bursa Malaysia. He also highlighted plans to develop sector indices and fixed income ETFs, which will attract institutional investors given the recent launch of CGB futures and revitalized gold futures.

Q: Why has the number of active IPO applications fallen slightly, and is there concern about pipeline quality? A: CEO Bonnie Y Chan explained that the decline is largely due to the conversion of applications into actual listings, with over 100 IPOs completed year-to-date and total fundraising already exceeding the full-year 2025 total. She reassured that the number of applications remains high at a few hundred, and that her day-to-day interactions with potential listing applicants confirm that interest remains very strong and has not waned.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .