Concept tracking of Hong Kong stocks | Hang Seng Index increased by nearly 2024 for the whole year in February. Hong Kong Exchange is currently processing more than 100 listing applications (with concept stocks)

In February this year, the Hong Kong stock market performed brilliantly, with investors talking excitedly about it, and the Hang Seng Index outshining major stock market indexes worldwide. From early February to February 27th, the Hang Seng Index has risen by 17.27%, almost matching the full-year increase of 17.67% in 2024. Driven by the "technology bull", the Hang Seng Technology Index has risen by more than 30% since the beginning of the year until February 27th. It is worth mentioning that the Hang Seng Index has the highest increase among major markets globally since the beginning of the year. Data shows that, as of the time of drafting, the Dow Jones, Nasdaq, FTSE 100, and Nikkei 225 have had gains of 1.63%, -3.97%, 7.14%, and -7.25% respectively, while the Hang Seng Index has increased by 15.51%. Hong Kong Financial Secretary Paul Chan Mo-po presented the government's fiscal budget for the 2025-2026 fiscal year. Paul Chan Mo-po stated that confidence in financing in Hong Kong has been strengthened, with the total capital raised from new listings in Hong Kong reaching HK$88 billion last year, an increase of nearly 90% year-on-year, ranking fourth globally. HKEX (Hong Kong Stock Exchange) is currently processing over 100 listing applications. Charles Li, CEO of the HKEX Group, mentioned that geopolitical and macroeconomic trends will continue to impact global markets, but there are positive signals of economic recovery. Stimulus policies in mainland China, along with interest rate cuts in major international markets, will inject new vitality into the new listings and secondary markets in Hong Kong. Despite the ongoing volatility in market conditions in 2024, the relatively optimistic global economic outlook and improved market sentiment will benefit trading activities and performance in various markets under the HKEX. The Hong Kong stock market boom benefits top brokerage firms: HKEX (00388): HSBC Research released a report stating that HKEX's performance last year met expectations, and the management is confident in the outlook for new listings. They also predict the introduction of RMB trading counters for southbound transactions this year. The bank has maintained its buy rating and raised the target price from HK$375 to HK$411. They have raised their forecast for HKEX's average daily trading volume to HK$186 billion to reflect increased participation from international investors, although this is lower than the current year-to-date figure of HK$212 billion as they believe turnover will return to normal levels, around 110%. As a result, they have raised their profit forecasts for HKEX for the next two years by 6.4% and 5.6%, and they expect earnings per share to reach HK$12.21 in 2027. The bank believes that the positive factors from new listings and the expansion of the Stock Connect scheme will help maintain HKEX's turnover rate above the long-term average level.