Source: Securities Times
Author: Wu Shun.
For Hong Kong, an international financial center, the status of Hong Kong Exchanges and Clearing Limited (hereinafter referred to as "HKEX") is self-evident. Starting from June 20, $HKEX (00388.HK)$The iconic golden gong will tour various districts in Hong Kong for two weeks. This is part of the celebrations for HKEX's 25th anniversary this year and marks the first time HKEX hosts the "Golden Gong Parade."
Over the past 25 years, HKEX's "gong" has grown larger, with various data continuously soaring, the market structure consistently optimizing, and Hong Kong's role as a "super connector" becoming increasingly important. HKEX Chairman Charles Li stated: "Promoting the connection between China and world markets, advancing the internationalization of the Renminbi, and supporting the development of the mainland market will continue to bring endless opportunities to HKEX."
Multiple data have experienced explosive growth.
After 25 years of development, HKEX has transformed from a local exchange into a fast-growing, innovative, dynamic, and resilient international Capital Markets, providing investment opportunities for global capital.
Since 2000, the HKEX has developed into a leading global market operator and a 'super connector' between China and the world. So far this year, the daily trading volume of the HKEX securities market has exceeded 240 billion Hong Kong dollars, more than 17 times the 13 billion Hong Kong dollars in 2000, witnessing the continuous growth of the Hong Kong market and the investor community over the past 25 years.
The growth in the HKEX derivatives market has been even more remarkable, with a daily average trading volume of 1.76 million contracts this year, far exceeding the 37,500 contracts in 2000.
At the same time, the HKEX's new stock market has also remained active, currently ranking first in the world in new stock fundraising. So far this year, the HKEX has completed 31 initial public offerings, raising over 88.4 billion Hong Kong dollars, solidifying Hong Kong's position as the world's preferred financing market.
According to statistics from the Securities Times and Wind, over the past 25 years, the total market cap of the Hong Kong stock market has surged from 3.92 trillion Hong Kong dollars in March 2022 to 40.93 trillion Hong Kong dollars in May 2025, an increase of over 9 times; in 2000, the total dividends of the Hong Kong stock market were only 90.7 billion Hong Kong dollars, while the total dividends for the entire 2024 exceeded 1.35 trillion Hong Kong dollars, an increase of over 10 times.
In response, HKEX Group CEO Bonnie Chan Yi-ting stated, 'Over the past 25 years, the HKEX has led the rapid development of the Hong Kong market, actively implementing multiple reforms. We keep pace with the times, seize opportunities, evolving from a local exchange into an international financial market today with a diverse investor base and a rich product ecosystem. The HKEX will continue to innovate, push forward, and vigorously promote market connectivity and sustainable development, looking forward to a more glorious future.'
Continuing to boldly reform.
The growth of the HKEX cannot be separated from mainland companies, which have helped the HKEX attract trillions of funds over the decades, complementing each other.
The close connection between the Hong Kong and mainland markets over the years has created a win-win situation for the capital markets of both regions. On one hand, the mainland market has continuously expanded its opening up to the outside world, attracting more international funds to participate; on the other hand, the Hong Kong market has seized the opportunities for capital flow in and out of the mainland, developing into an international financial center facing the world.
Tang Jiacheng stated that he participated in the preparations for the first batch of mainland companies to be listed in Hong Kong in the early 1990s, experiencing many challenges himself. Looking back, it was a pioneering bold move to bring these companies into the Hong Kong market, and the process was certainly not easy. The company he worked for had to mobilize hundreds of accountants and consultants to handle this task, but they were also dealing with mainland companies going public for the first time, and everyone was feeling their way through.
“But in the end, we succeeded - the new shares of the first mainland company listed in Hong Kong that we were involved in were oversubscribed by 374 times, marking the beginning of a new era.” Tang Jiacheng stated that after this successful breakthrough came the H-share mechanism launched in 1993 and later the stock connect program, which helped develop the Hong Kong Capital Markets, connecting international capital with Chinese opportunities, writing one of the most successful growth chapters in modern history.
“I remember during my term as the chairman of the Hong Kong Securities and Futures Commission, the Commission began to implement preemptive regulation on listed companies and established a cooperative mechanism with the mainland market regulatory authorities, and approved the formal launch of the stock connect program. Over the years, we have maintained a delicate balance between promoting market development and maintaining market quality, ensuring that while implementing various measures to enhance the listing process, the Hong Kong market has the vitality and competitiveness to attract talent, capital, and new opportunities.” Tang Jiacheng admitted that these efforts have also brought positive results today, making Hong Kong one of the world's leading fundraising markets.
These measures have had a profoundly far-reaching impact. Since 2000, the number of listed companies in Hong Kong has increased from 790 to more than 2,600, and mainland enterprises listed in Hong Kong now account for 81% of the total Market Cap.
Therefore, it is not difficult to see that the Hong Kong Capital Markets play a key role in China's economic development, supporting the development of a series of industries that help modernize the Chinese economy, such as infrastructure, banks, and XINJINGJI.
How to navigate the next 25 years.
HKEX is committed to continuously enhancing market attractiveness and competitiveness, introducing various measures over the past 25 years to optimize infrastructure, enrich product offerings, and expand global layout.
Reforms at HKEX are ongoing. For example, regarding the stock connect mechanism that connects the Hong Kong and mainland markets, it has expanded from initially covering stocks to also include Bonds, ETFs, and interest rate swaps, and in the future, it will further cover Real Estate Investment Trusts. Meanwhile, HKEX is implementing a series of platform and infrastructure optimization measures, including enhancing the Navigator Star spot market platform and developing the Navigator Star derivatives platform, promoting the Hong Kong market to stand out and facilitating its long-term sustainable development.
"In the next 25 years, we will continue to work hard. The most important mission of an Exchange is to connect capital and opportunities to support the development of quality enterprises globally and in our country. We have done a lot in this regard, but there is more we can do," said Bonnie Chan Yi-ting.
Bonnie Chan Yi-ting stated that during her recent visits overseas, she has clearly noticed that foreign investors are reevaluating Chinese Assets. Given the current complex external environment, foreign investors also have new ideas regarding their Funds allocation. "Currently, some innovative companies and new consumption enterprises that are emerging from China are particularly favored sectors for them. Recently, the IPO market has also shown that foreign investors have a very high interest in new stock subscriptions."
Regarding the future introduction of new Stock Connect and various other questions, Bonnie Chan Yi-ting described it using the mainland e-commerce theory of 'people, goods, and market': "'People' refers to investors and enterprises, and we need to serve them well; 'Goods' aspect, we are becoming increasingly rich, the interconnection possibilities extend beyond Stocks and Bonds; 'Market' is the platform, and we need to refine the platform to provide the best experience for participants."
On the issue of the rapid recovery of the Hong Kong IPO market this year, Bonnie Chan Yi-ting admitted that she does not care about rankings: "Rankings are not our primary goal. Our fundamental goal is to serve the real economy well, ensuring that we can provide a particularly strong financing platform to support better development of enterprises."
Editor/melody
