HSBC Research released a report on February 28, Jinshi Data, stating that the performance of HKEX (00388.HK) last year met expectations. The management is confident in the outlook for new stocks and is expected to launch a RMB counter for southbound trading this year. The bank maintains its Buy rating and raises the target price from 375 Hong Kong dollars to 411 Hong Kong dollars. The bank raised its daily trading volume forecast for HKEX this year to 186 billion yuan to reflect the participation of international investors in the rise, but the bank's forecast is lower than the 212 billion yuan from the beginning of the year to now, because the bank expects the turnover rate to return to a normal level, about 110%. Therefore, the bank raised its profit forecast for HKEX in the next two years by 6.4% and 5.6% respectively, and expects earnings per share in 2027 to reach 12.21 Hong Kong dollars. The bank believes that factors such as new listings and the expansion of the mutual market access scheme will help maintain HKEX's turnover rate above the long-term average level.
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HSBC Research raises Hong Kong Exchange target price to 411 Hong Kong dollars, raises profit forecast
HSBC Research released a report on February 28, Jinshi Data, stating that the performance of HKEX (00388.HK) last year met expectations. The management is confident in the outlook for new stocks and is expected to launch a RMB counter for southbound trading this year. The bank maintains its Buy rating and raises the target price from 375 Hong Kong dollars to 411 Hong Kong dollars. The bank raised its daily trading volume forecast for HKEX this year to 186 billion yuan to reflect the participation of international investors in the rise, but the bank's forecast is lower than the 212 billion yuan from the beginning of the year to now, because the bank expects the turnover rate to return to a normal level, about 110%. Therefore, the bank raised its profit forecast for HKEX in the next two years by 6.4% and 5.6% respectively, and expects earnings per share in 2027 to reach 12.21 Hong Kong dollars. The bank believes that factors such as new listings and the expansion of the mutual market access scheme will help maintain HKEX's turnover rate above the long-term average level.