Financial services: approx. 60%
Technology and innovation: approx. 25%
Real estate and infrastructure: approx. 15%

Top 3 markets:
China: approx. 50%
Hong Kong: approx. 30%
International markets (USA, Europe): approx. 20%

Hong Kong Exchanges and Clearing Limited (HKEX) generates the majority of its revenue from financial services, particularly through trading stocks, derivatives, and other financial instruments. The technology and innovation sector is gaining importance as HKEX invests in new technologies to modernize and make its trading platforms more efficient.

The Chinese market is the biggest revenue driver for HKEX, as many Chinese companies are listed in Hong Kong, and trading these stocks accounts for a significant portion of the revenue. Hong Kong itself remains a significant market, while international markets, especially the USA and Europe, also make important contributions as HKEX expands its global reach.

Production of Products: Not applicable

Hong Kong Exchanges and Clearing Limited (HKEX) is not a production company, but an exchange operator. It operates the stock exchanges and clearing houses in Hong Kong and provides trading, clearing, and settlement services for securities, derivatives, and other financial instruments.

Since HKEX does not manufacture physical products, but offers services in the financial sector, the question of production locations is not relevant. Its headquarters are located in Hong Kong, from where it provides its services globally.

Strategic Priorities:

• Technology Investments: Continuous modernization of trading platforms
• International Expansion: Expansion of connections to other global markets
• Sustainability: Promotion of ESG investments

Hong Kong Exchanges and Clearing Limited (HKEX) pursues a strategy that is heavily focused on technology investments. The company plans to further modernize its trading platforms to increase efficiency and security. This includes both enhancing existing infrastructure and introducing new technologies to facilitate trading.

Another key point of the growth strategy is international expansion. HKEX strives to expand its connections to other global markets, particularly through partnerships and collaborations with other exchanges. This is intended to facilitate access to international investors and increase trading volume.

Additionally, HKEX places great emphasis on sustainability and actively promotes ESG investments (Environmental, Social, and Governance). This reflects the global trend that investors are increasingly valuing sustainable and responsible investments. By introducing new ESG products and services, HKEX positions itself as a leading platform for sustainable investments in the region.

Main imported raw materials: Gold, silver, copper
Main supplying countries: Australia, China, South Africa

Hong Kong Exchanges and Clearing Limited (HKEX) is primarily an exchange and not a direct importer of commodities. However, it plays a significant role in commodity trading, especially through the trading of futures and options on metals and other commodities.

In the context of Hong Kong as a trading center, commodities such as gold, silver, and copper are often imported to meet the needs of the local industry and financial market. Australia and China are significant suppliers of metals, while South Africa is an important exporter of precious metals.

These raw materials are often traded through HKEX, making the exchange an important hub for commodity trading in Asia.

Market share in Asia: 25% (estimated, 2025)
Operating margin: 70% (2024)
Return on Equity (ROE): 18% (2024)

Hong Kong Exchanges and Clearing Limited (HKEX) has a significant competitive advantage as one of the leading stock exchanges in Asia. The high market share of around 25% in the region underscores its strong position. The operating margin of 70% demonstrates an efficient cost structure and the ability to generate high profits from revenues.

The 18% Return on Equity indicates that the company effectively utilizes capital to generate profits. HKEX benefits from its strategic location as a gateway to Chinese markets and its role as a hub for international investors looking to invest in Asia.

Furthermore, the continuous introduction of new products and services, such as derivatives and green bonds, strengthens HKEX's competitive position. Regulatory stability and technological infrastructure also contribute to its long-term success.

Institutional investor share: 60% (estimated, 2025)
Insider purchases/sales: No significant transactions reported (2025)

The institutional investor share in Hong Kong Exchanges and Clearing Limited (HKEX) is estimated to be around 60%. This suggests that a majority of the shares are held by large institutional investors, indicating a high level of confidence in the company's stability and growth potential.

No significant insider transactions were reported for the year 2025. This could indicate that the management and other insiders currently do not see strong buying or selling impulses, which is often interpreted as a sign of a stable company situation.

Market share of Hong Kong Exchanges and Clearing Limited (HKEX): 35% (2025, estimated)

Main competitors and their market shares:

1. Shanghai Stock Exchange: 20%
2. Shenzhen Stock Exchange: 15%
3. Singapore Exchange: 10%
4. Japan Exchange Group: 8%
5. Korea Exchange: 7%
6. Taiwan Stock Exchange: 5%

Moat of HKEX:

Hong Kong Exchanges and Clearing Limited (HKEX) has a significant moat, which consists of several factors. Firstly, HKEX benefits from its strategic location as a gateway to China, making it a preferred platform for international investors seeking access to Chinese markets. Additionally, HKEX provides direct trading opportunities between Hong Kong and the mainland exchanges in Shanghai and Shenzhen through programs like Stock Connect, facilitating access to Chinese stocks.

Another advantage is the strong regulatory environment and high liquidity that make HKEX an attractive trading venue. The exchange has also invested in technology to make trading more efficient and secure, further enhancing its competitiveness.

Compared to competitors, the Chinese exchanges, especially the Shanghai and Shenzhen Stock Exchange, also hold strong positions, particularly due to direct access to the rapidly growing Chinese markets. However, their international access is more limited compared to HKEX.

Overall, HKEX has a significant moat strengthened by its international reach and strategic partnerships, while competitors are strong in specific regional markets but less globally connected.

Revenue growth: 8% (2024)
Profit growth: 6% (2024)
Market share in the Asian region: 15% (2024)

Hong Kong Exchanges and Clearing Limited (HKEX) recorded a revenue growth of 8% in 2024, attributed to increasing trading activity and an expanded product range. Profit growth was at 6%, indicating efficient cost controls and improved operational efficiency.

HKEX has further solidified its market position in the Asian region, holding a market share of 15%. This demonstrates the strategic importance of the exchange in the Asian financial sector, particularly in connecting Chinese and international markets.

The long-term growth prospects of HKEX are positive as the exchange continues to benefit from the internationalization of the Renminbi and the increasing integration of Chinese financial markets. Additionally, future regulatory changes and technological innovations could provide additional growth opportunities.

Overall, HKEX could be an attractive investment for investors interested in a stable and strategically positioned exchange in the Asian region.

Dividend yield: 3.2% (2024)

Dividend history: Continuous payout in the last 5 years

Hong Kong Exchanges and Clearing Limited (SEHK:388) has regularly distributed dividends in recent years. The dividend yield was approximately 3.2% in 2024, which is competitive compared to other stock exchange operators.

The reliability of dividend payments is high as the company has a solid financial foundation and stable revenue sources from its exchange operations. There have been no dividend suspensions in the last five years, indicating a strong dividend policy. Analysts expect this stability to be maintained in the coming years, provided there are no significant market disruptions.