, Hong Kong
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HKEX posts record Q1 with daily turnover hitting $243b

The surge was driven by Southbound ADT of $110b.

The Hong Kong Stock Exchange (HKEX) posted its highest-ever quarterly trading activity in Q1 2025, with average daily turnover (ADT) reaching $243b, up 144% YoY and 30% QoQ.

The surge was “driven by Southbound ADT of $110b, up 255% yoy and 41% qoq,” according to CGS International’s latest company note.

Southbound trading accounted for 23% of total ADT, a structural shift that analysts believe reflects more than short-term speculation.

“We believe that robust growth of Southbound ADT is underpinned by long-term fundamentals,” the report noted, highlighting that Southbound net purchases reached $439b, up by 230% YoY and by 45% QoQ.

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“Southbound net inflow has remained resilient in 4M25 against external pressures such as US tariff policies,” analysts added, pointing to a growing investor preference for Hong Kong listings amid global uncertainty.

CGS International also emphasised a strategic shift in liquidity away from US-listed Chinese ADRs: “The proportion of turnover on HKEX for 12 secondary-listed companies rose from 23% to 30% from 3Q24 to 1Q25… largely due to heightened concerns over ADR delisting risks.”

Despite ongoing geopolitical headwinds, the firm remains bullish on HKEX’s trajectory, reiterating an “Add” rating with a target price of $490, unchanged from prior forecasts. “Our Add call is due to strong ADT growth driving 8–29% FY25–27F NP growth,” they wrote.

Potential re-rating catalysts include “more high-quality IPOs, policy tailwinds, and better-than-expected Hang Seng Index performance,” whilst downside risks could come from “lower rates hurting investment income and escalating geopolitics.”
 

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