Hong Kong Securities Regulatory Commission: Average daily trading volume of Hong Kong stocks in the first half of the year increased by 82% year-on-year, while the amount of funds raised by new stocks increased by 7 times, ranking first in the world.

The Securities and Futures Commission of Hong Kong released a semi-annual review report on the securities market, which pointed out that the performance of Hong Kong stocks in the first half of the year was better than most major markets, with a significant increase in trading volume and a booming new stock market. Data shows that the average daily turnover of Hong Kong stocks in the first half of the year reached HK$240.2 billion, an increase of 82.2% year-on-year; the new stock market welcomed a total of 42 new listings, raising a total of HK$107.1 billion, which is 7 times higher than the fundraising amount in the first half of last year, ranking first in the world. The report pointed out that at the beginning of this year, although global trade tensions triggered market volatility at one point, breakthroughs were made in the field of artificial intelligence (AI) in the mainland. Combined with market optimism towards fiscal stimulus measures and loose monetary policies, this boosted investor sentiment and market performance in Hong Kong. Despite occasional fluctuations, the Hong Kong stock market remains stable, with trading conducted in an orderly manner and all parts of the market operating normally. The report stated that in the first half of this year, the Hang Seng Index, Hang Seng H-Share Index ETF, and Hang Seng Technology Index rose by 20%, 19%, and 18.7% respectively, outperforming most major overseas markets. Average daily turnover of Hong Kong stocks soared to HK$240.2 billion in the first half of the year, an 82.2% year-on-year increase. In February this year, the average daily turnover reached HK$297.3 billion, setting a new monthly record. The average daily turnover of exchange-traded derivatives in the first half of the year also increased by 10%. As for off-exchange derivatives tracking Hong Kong stocks and indices, the nominal value increased from HK$1.3 trillion in 2024 to approximately HK$1.6 trillion, with the proportion relative to the market capitalization remaining relatively stable. The IPO market in Hong Kong recorded strong growth in the first half of this year, with a total of 42 new listings raising HK$107.1 billion, which is 7 times higher than the fundraising amount in the first half of last year. Among them, 4 companies raised more than HK$5 billion each; 7 were A+H shares, with a combined fundraising of approximately HK$77 billion. Preliminary data shows that the fundraising amount from IPOs in the first half of this year in Hong Kong ranked first globally. In terms of the Stock Connect trading mechanism, Southbound trading accounted for 23.1% of the overall market turnover in Hong Kong in the first half of the year, a significant increase from 18.3% in 2024, with an average daily turnover soaring by 130.2%. Southbound trading recorded a net inflow of HK$731.2 billion, already equivalent to 91% of the total HK$807.9 billion for last year. As of the end of June, the cumulative net inflow from Southbound trading reached HK$4.42 trillion. During the period, the percentage of short selling turnover to market turnover in Hong Kong remained stable, with an average daily short selling turnover of HK$37 billion, accounting for 15.4% of the total market turnover. Of the aforementioned short selling turnover, HK$9.4 billion or 25.4% came from ETFs and leveraged and inverse products traded on the exchange. Excluding exchange-traded products, the average daily short selling turnover was HK$27.6 billion, accounting for 13.6% of the market turnover. As of the end of June, the total outstanding shorts amounted to HK$707.1 billion, an increase of HK$259.6 billion from the end of last year, accounting for 1.73% of the market capitalization, up 0.4 percentage points from the end of last year, mainly driven by normal commercial demand and not concentrated on any individual stocks or holders.