On February 27, the Hong Kong Stock Exchange (00388.HK) (hereinafter referred to as "HKEX") disclosed its full-year results for 2024, with full-year revenue and other income of HK$22.4 billion, a year-on-year increase of 9%; profit attributable to shareholders of HK$13 billion, a year-on-year increase of 10%.

The Hong Kong Stock Exchange said that although the market conditions continued to fluctuate in 2024, the global economic outlook was relatively optimistic and the market atmosphere improved. This background is beneficial to the trading activities and performance of various markets under the Hong Kong Stock Exchange.

In February this year, the Hong Kong stock market performed well, and investors talked about it with great enthusiasm. The Hang Seng Index rose to the top of the world's major stock market indices. From the beginning of February to February 27, the Hang Seng Index has risen by 17.27%, which is basically the same as the 17.67% increase in 2024. Driven by the "Tech Bull", the Hang Seng Technology Index has risen by more than 30% from the beginning of the year to February 27.

It is worth mentioning that since the beginning of the year, the Hang Seng Index has ranked first among the major global markets. Data shows that as of press time, the Dow Jones, Nasdaq, FTSE 100, and Nikkei 225 have risen by 1.63%, -3.97%, 7.14%, and -7.25%, respectively, while the Hang Seng Index has risen by 15.51%.

However, in the past two trading days, the Hang Seng Index has adjusted back. As of the midday trading on February 28, it was reported at 23171.69 points, down 2.3%. The increase in February was still 14.57%, ranking first among the major global stock market indices.

The stock market's single-day turnover reached a new high of HK$620.7 billion

In 2024, the Hong Kong Stock Exchange's annual revenue and other income will be HK$22.4 billion, a year-on-year increase of 9%; the profit attributable to shareholders will be HK$13.1 billion, a year-on-year increase of 10%. Both revenue and net profit have set a record high.

HKEX said the growth in revenue from its main businesses was due to the increase in trading volume in the spot, derivatives and commodity markets, which increased trading and settlement fees, as well as increased fees from the LME (London Metal Exchange).

HKEX Group CEO Chan Yik Ting said that geopolitical and macroeconomic trends will continue to affect global markets, but there are positive signs of economic recovery. Mainland stimulus policies and interest rate cuts in major international markets will inject new vitality into Hong Kong's new shares and secondary markets.

"Coinciding with the 25th anniversary of the listing of the Hong Kong Stock Exchange, as the core infrastructure of Hong Kong's capital market, we will continue to invest in future development, enhance market attractiveness and competitiveness, and promote market prosperity and sustainable development. We look forward to working with all stakeholders to lead the market and create a new chapter together." Chan Yik Ting said.

In the second half of last year, the Hong Kong stock market was particularly active. On October 8, the turnover of the Hong Kong Stock Exchange's stock spot market was HK$620.7 billion, a record high. In 2024, the average daily turnover of the Hong Kong Stock Exchange's spot market reached HK$131.8 billion, an increase of 26% over 2023. The average daily turnover of Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Hong Kong Stock Connect also hit a new high. The average daily turnover of southbound transactions reached HK$48.2 billion, a year-on-year increase of 55%, and the average daily turnover of northbound transactions reached HK$150.1 billion, a year-on-year increase of 39%.

In terms of the IPO market, the Hong Kong Stock Exchange mentioned that the amount of funds raised by new shares in the second half of 2024 is more than five times that in the first half of 2024. A total of 71 new stocks were listed throughout the year, raising HK$88 billion, a year-on-year increase of 90%.

Among them are many leading companies in the mainland industry, including Midea Group (00300.HK), a giant in the home appliance industry, and China Resources Beverage (02460.HK), a member of China Resources Group. When Midea Group landed on the Hong Kong stock market, it was favored by funds, and its increase in the seven trading days after listing reached 31.47%.

In addition, Alibaba (09988.HK) completed its dual primary listing in Hong Kong and was included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect on September 10 last year. Mainland investors can invest through the Hong Kong Stock Connect. Mainland investors have long coveted Alibaba assets, and this inclusion is in line with the market's call. From September 10 to September 30, 2024, Alibaba's H-share price rose by as much as 40.49%.

The Hong Kong Stock Exchange also emphasized in its financial report that Alibaba's stock has been actively traded since it was included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, contributing to the capital flow of southbound Hong Kong Stock Connect.

The Hang Seng Index's increase in February has been close to last year's

Since 2025, Hong Kong stocks have rebounded strongly after the adjustment period at the end of the previous year, and have greatly exceeded market expectations, becoming a hot topic since the beginning of the year. According to data, the Hang Seng Index rose by 17.27% from the beginning of February to February 27, which is basically the same as the 17.67% increase in 2024.

Benefiting from DeepSeek's "breaking the circle" effect, the boost in the technology sector is the most obvious. On January 27, DeepSeek released the R1 model, which is comparable to global leading companies in the industry such as OpenAI with its high performance, low cost and open source features, and has had a significant impact on the global AI technology route, industrial structure and even open source willingness. Driven by the "tech bull", the Hang Seng Technology Index has risen by more than 30% from the beginning of the year to February 27.

"Before the Chinese New Year, I bought a little Hong Kong Technology ETF, which is a low-cost investment. Since the Chinese New Year, the increase has far exceeded expectations. I have always regretted buying less, but because I follow the principle of "not chasing the rise" in my heart, I have not increased my position." Zhou Feng (pseudonym), an investor in Guangzhou, told the Times Weekly reporter that Hong Kong stocks have risen sharply since the beginning of the year. He went to two banks in Hong Kong last Saturday to apply for overseas bank cards. One of them has passed the information review, and he is ready to "kill" into the Hong Kong stock market.

According to a research report released by CICC on February 22, the current round of Hong Kong stock market and last year's "924" market can be found to be similar in that they are both driven by emotions and dominated by trading funds, but the difference is that this round of market is more focused on the technology sector around AI, and the structure is more significant. For example, among the 547 Hong Kong Stock Connect samples, only 20% of the stocks outperformed the index in this round, and they were mainly concentrated in the fields of technology, consumption, and AI medical care, while most of the old economy and traditional sectors lagged behind; but in the "924" market, more than 60% of Hong Kong stocks outperformed the index, and they were mainly in procyclical sectors such as finance and real estate.

Regarding the future trend of Hong Kong stocks, Chen Ximiao, head of overseas strategy at Guotai Junan, believed in a research report released on February 25 that the current technology industry cycle trend has been established, which means that in addition to thematic speculation opportunities, the market is expected to usher in medium-term investment opportunities. In addition, it is necessary to pay extra attention to the positive changes in the attitude of industrial policies to guide the first repair of valuations and emotions.

While market sentiment is high, relevant departments in Hong Kong are constantly introducing new policies, and people from all walks of life are also making suggestions to attract more funds to enter the market.

On January 23, the Hong Kong Securities and Futures Commission listed new regulatory regulations. The new regulations expanded the scope of listed structured funds that can be sold to the Hong Kong public, adding two types of products: individual stock leverage and inverse products and defined income listed structured funds.

In terms of individual stock leverage and inverse products, although it does not include overseas listed stocks that are dual-listed in Hong Kong and stocks listed on mainland exchanges, Hong Kong stocks are still the first financial market in Asia to cover such products.

A private equity person told the Times Weekly reporter that this is equivalent to opening a channel for long or short overseas targets in the Hong Kong stock market, which may be more attractive to US stock players.

On February 11, the Hong Kong General Chamber of Commerce proposed to expand the cross-border wealth management plan to other major cities in the mainland and expand the product range. For the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, it is recommended to relax the threshold for qualified investors of the "Southbound Connect" and exempt mainland individual investors from the 20% tax on purchasing Hong Kong stocks through the Shanghai-Hong Kong Stock Connect.

On February 26, the Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan, released the "Government Budget for the Fiscal Year 2025-26", which involves multiple benefits such as incorporating RMB trading counters into the Hong Kong Stock Connect, assisting special technology and biotechnology companies in raising funds for development, and optimizing the connection between the Mainland and Hong Kong in electronic payments.

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