Hong Kong Exchanges and Clearing Limited (HKEX) had a fruitful 2024, marked by new leadership, greater connectivity and engagement with international markets, the launch of multi-year infrastructure enhancement programmes, and fresh trading records that underscore the market's vibrancy and resilience.

HKEX introduced a host of initiatives during the year, further enhancing the Group's offerings and strengthening Hong Kong's role as a leading international financial centre. These included plans to open an office in Riyadh, as well as adding Abu Dhabi and Dubai to the list of recognised stock exchanges, bolstering capital market connectivity between Asia and the Middle East. The Group also saw the successful implementation of Severe Weather Trading arrangements, reflecting HKEX's commitment to continuously elevating its market competitiveness.

HKEX Chairman Carlson Tong and Chief Executive Officer Bonnie Y Chan assumed their roles in April and March, respectively. This coincided with a period of improved macro conditions that fuelled market enthusiasm, as highlighted by the new daily trading records across all of HKEX's markets in the third and fourth quarters, with the cash equities market hitting a record $620 billion in turnover on 8 October 2024.

For 2024, Hong Kong ranked as one of the world's top four IPO venues, with activity and fundraising volumes rising sharply from a year earlier. As at 20 December, HKEX IPOs raised a total of $83 billion from 66 new listings*, including the city's biggest IPO since 2021. HKEX's new listing chapters supported evolving market needs with two listings under the specialist technology Chapter 18C, three GEM listings following its reforms, and the first De-SPAC transaction.

In October, HKEX announced an enhanced timeframe for the new listing application process, together with the Securities and Futures Commission (SFC). This initiative, which also features an accelerated processing timeframe for eligible companies listed in Mainland China, will provide greater certainty and transparency for potential applicants and their advisers in formulating their listing plans. This announcement followed another important Listing enhancement, with the implementation of a new treasury share regime in June that provides issuers with greater flexibility in capital management through share buy-backs and resales of treasury shares. HKEX also issued a consultation paper in December on optimising the IPO price discovery process and open market requirements.

In November, HKEX celebrated the 10th anniversary of the Connect programme, which has expanded beyond its initial focus on equities to include bonds, Exchange Traded Funds (ETFs), and interest rate swaps. This year, more enhancements were implemented, including the relaxation of ETF eligibility requirements under Stock Connect, as well as new trade types and services for Swap Connect. The upcoming inclusion of real estate investment trusts under Stock Connect — and the introduction of RMB counters for Southbound trading — will further solidify Hong Kong's role as a superconnector between Mainland China and global capital markets.

HKEX's derivatives market also had a very solid year, with average daily volumes (ADV) of futures and options reaching 1.57 million contracts as at 30 November, up 16 per cent from a year earlier. Among new derivatives products launched during the period, HKEX introduced weekly Hang Seng TECH Index Options and weekly options for 10 single stocks, enhancing its dynamic options ecosystem and catering to the growing demand for shorter-dated options.

The Exchange Traded Products (ETPs) market, including ETFs and leveraged and inverse products, has gone from strength to strength, with average daily turnover reaching $18.7 billion as at the end of November, an increase of around 34 per cent from a year earlier. During the year, HKEX welcomed Hong Kong's first-ever listings of Covered Call ETFs and Asia's first Spot Virtual Asset ETFs, further enhancing product diversity and liquidity, contributing to the 36 new ETFs launched during the period. Furthermore, HKEX unveiled plans to digitise and automate the in-kind creation and redemption process for ETPs, a move that will increase market efficiency and support the continued growth of secondary market activity for ETPs.

To further enhance the liquidity and vibrancy of Hong Kong’s markets, HKEX will proceed with a proposal to reduce minimum spreads of eligible securities, following strong support after a market consultation, with the first phase set for implementation in mid-2025.

Beyond new products and microstructure enhancements, HKEX is developing future-ready capabilities that will enable real-time trade processing and round-the-clock derivatives trading, ensuring that HKEX’s market infrastructure can meet the needs of the next generation of investors.

To this end, HKEX announced plans to introduce new post trade services and features on its integrated cash market platform, the Orion Cash Platform (OCP), as well as plans to develop the Orion Derivatives Platform (ODP), an in-house platform that will differentiate the Group’s derivatives offerings. Also, HKEX will ensure its systems are technically ready for a T+1 stock settlement cycle by the end of 2025 and facilitate discussion in 2025 on a suitable settlement cycle for Hong Kong's markets, with plans to publish a white paper in the first half. The progressive rollout of these platforms and features will help bolster HKEX's ability to support global investors and solidify Hong Kong's standing as Asia's premier risk management centre.

HKEX also continued its push to explore adjacencies in 2024, with the introduction of the HKEX Virtual Asset Index Series and the Hang Seng HKEX Stock Connect China Enterprises Index marking the Group's foray into indexes. The launch of a Fund Repository on the Integrated Fund Platform also represents a significant step forward in enhancing Hong Kong's fund industry value chain and ecosystem. In addition, HKEX launched a new web-based data platform, the HKEX Data Marketplace, to distribute its historical data products and support the needs of HKEX's global investors.

The London Metal Exchange (LME) also had a strong year, with ADV for the year to 30 November registering a 22 per cent increase from a year earlier. In July, the LME added Jeddah, Saudi Arabia, as a copper and zinc warehouse delivery point, and it continues to make progress in adding Hong Kong as a new warehouse location. As well, following the successful roll-out of an enhanced electronic closing pricing methodology, the LME published a white paper on further evolving its market structure to enhance liquidity, and announced that it will launch its new trading platform, LMEselect v10, on 24 March 2025.

As a purpose-driven company, HKEX has an important and unique role as a corporate, regulator and market operator in fostering positive change in society. It launched a new Sustainability function this year that reflects a more structured and collaborative approach in how the Group considers its responsibility to the environment, its employees, its communities, and its markets.

HKEX continues to promote robust ESG standards to further elevate the quality of its issuers and market ecosystem. It will be implementing new enhancements to the Corporate Governance Code and related rules, whilst new climate-related disclosure rules will come into effect from 2025. The Exchange is also moving firmly towards ending single-gender boards among all its listed issuers, with related requirements taking effect on 1 January 2025.

HKEX Chief Executive Officer, Bonnie Y Chan, said: "2024 has been a year of significant progress and delivery as we position HKEX and our markets for a sustainable and vibrant future. During the year, we have completed or announced various important strategic initiatives that will bring long-term positive impact to our markets, including reforms, new products, strategic partnerships, and programmes to advance our future-ready capabilities. The improved macro backdrop also supported renewed vibrancy and robustness of our markets, positioning our listing franchise very positively into 2025 and beyond. But we can’t stop here. There is much ahead for us to pursue, and whilst I am very proud of the team’s achievements this year, I look forward to working together with my fantastic colleagues to delivering on our strategic imperatives, supporting our global investors and elevating Hong Kong's financial landscape."

“On behalf of HKEX, I would like to thank our customers, business partners, regulators and our communities in Hong Kong, Mainland China and around the world, for their unwavering support and engagement over the past year. Their ongoing feedback is crucial in helping us formulate the appropriate initiatives with which to further elevate our market attractiveness. We are enthusiastic about the future and are confident that 2025 will present another year of great opportunity and deeper connectivity for our markets.”

Here is a look back at some of the year's highlights:

Corporate and Strategic Highlights

·Announced plans to open an office in Riyadh, strengthening the Group’s Middle East presence as it looks to promote greater connectivity between Asia and the Gulf region

·Added Abu Dhabi Securities Exchange and Dubai Financial Market as Recognised Stock Exchanges, following the inclusion of Saudi Tadawul Exchange in 2023

·LME recognised Jeddah as a warehouse location and exploring to add Hong Kong

·Celebrated 10th anniversary of Stock Connect and 24th anniversary of HKEX's listing

·Signed MOUs with Shanxi, Shandong and Xi’an Governments to strengthen cooperation

·Established FIC Advisory Panel to support Group's FIC business strategy

Listing and IPOs        

·Welcomed the largest IPO in Hong Kong since 2021, with HKEX ranking in the top four exchanges globally this year for funds raised

·Implemented a new treasury share regime under the Listing Rules, providing issuers with greater flexibility in capital management through share buy-backs and resales of treasury shares

·Announced Enhanced Application Timeframe for the new listing application process together with the SFC

·Proposed to enhance the Listing Rules' requirements to facilitate IPO price discovery process and maintain an open market

·Confirmed the implementation of new Corporate Governance Code

Connect Programmes

·Relaxed ETF eligibility criteria under Stock Connect and welcomed an updated list of eligible ETFs for Northbound and Southbound trading

·Introduced IMM trades, backdated trades and solo compression service to Swap Connect

·Announced OTC Clear will accept China Government Bonds and Policy Bank Bonds as collateral for Swap Connect beginning 13 January 2025

Products and Market Operations

·Completed first Severe Weather Trading day, reinforcing Hong Kong's competitiveness as an IFC and the resilience of market infrastructure

·Launched self-match prevention service for derivatives market

·Included HKEX's currency futures and options to the list of eligible products for Derivatives Holiday Trading

·Introduced short-dated options including Weekly Hang Seng TECH Index Options and Weekly Stock Options

·Welcomed Hong Kong's first-ever listings of Covered Call ETFs and Asia’s first Spot Virtual Asset ETFs

·Finalised the implementation plan of reducing minimum spreads in the securities market

·LME Clear proposed reforms to boost market resilience by increasing member capital requirements and reducing the amount members must contribute towards its default fund

Infrastructure Enhancements

·Announced the introduction of new modernised post-trade services to OCP, and the development of ODP, preparing our platforms for the future

·Announced plans to introduce a web-based platform for in-kind creation and redemption of ETPs

Adjacencies

·Partnered with Hang Seng Indexes Company to launch Hang Seng HKEX Stock Connect China Enterprises Index

·Launched HKEX Virtual Asset Index Series, offering a reliable benchmark for a fast-emerging asset class that supports Hong Kong's development a leading digital assets hub

·Launched the HKEX Data Marketplace

·Launched the Fund Repository for the Integrated Fund Platform

Sustainability

·Launched Sustainability function to ensure that ESG considerations are incorporated into all aspects of HKEX’s operations, policies, and culture.

·HKEX Foundation donated HK$86 million in 2024, bringing the total number of projects supported by the Foundation to nearly 120 since its launch

·HKEX Foundation supported 74 students under its University Scholarship Programme since its launch

·Launched the Laura M Cha Capital Markets Scholarship Programme with CUHK Business School, contributing HK$200,000 to the annual scholarship fund, for a period of six years

·HKEX employees contributed over 1,700 volunteer hours to support various community causes

·Expected to achieve carbon neutrality goal through the purchase of renewable energy certificate and high-quality carbon credits

·Introduced Gold Standard carbon credits to Core Climate, recording more than 20 per cent increase in participants on the platform

·Announced implementation of mandatory Carbon Border Adjustment Mechanism emissions reporting for all LME-listed aluminium brands

Market Statistics for the period from 1 January to 29 November 2024 are now available on the HKEX website.

Note:

* As at 20 December, including transfers from GEM to Main Board