Promising Growth Outlook for HKEX Amid Easing US-China Tensions and Robust IPO Pipeline

Michael Chang, an analyst from CGS-CIMB, reiterated the Buy rating on Hong Kong Exchanges & Clearing Ltd. Registered Shs (80388 – Research Report). The associated price target was raised to HK$520.00.

Michael Chang has given his Buy rating due to a combination of factors that suggest a promising outlook for Hong Kong Exchanges & Clearing Ltd. The easing of US-China tariff tensions since May 2025 has improved market conditions, which, along with a robust pipeline of large-scale IPOs, positions HKEX favorably for growth. Chang anticipates that the exchange will benefit from a significant increase in average daily turnover (ADT), projecting it to reach HK$220 billion in 2025, which is notably higher than the consensus forecast.
Furthermore, the surge in jumbo IPOs, with several high-profile listings expected, is likely to enhance HKEX’s standing as a leading global exchange in terms of IPO proceeds. This, coupled with the potential for increased investor confidence due to the structural rise in ADT, supports Chang’s optimistic view. The analyst also notes that the current price-to-earnings ratio suggests further upside potential, reinforcing the Buy recommendation. Overall, the combination of these factors underpins a positive outlook for HKEX, justifying the Buy rating.