Strong Growth Potential for Hong Kong Exchanges & Clearing Amid Market Volatility and IPO Resurgence

Hong Kong Exchanges & Clearing (HKXCF – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Kenny Lim from UOB Kay Hian maintained a Buy rating on the stock and has a HK$470.00 price target.

Kenny Lim has given his Buy rating due to a combination of factors influencing Hong Kong Exchanges & Clearing’s potential for growth. The company’s earnings are projected to increase by 31% year-over-year in the second quarter of 2025, driven by a robust average daily turnover amid market volatility caused by US tariff uncertainties. Despite expectations of a slight moderation in market velocity, the improving IPO activities and a lower HIBOR environment are anticipated to attract more fund inflows, supporting market turnover.
Kenny Lim also highlights the resurgence in IPO activities, with a significant year-to-date increase in funds raised. The pipeline for new listings is strong, with numerous active applications and a continued trend of A-share companies seeking dual listings in Hong Kong. This favorable listing environment, bolstered by regulatory encouragement and strong market valuation, positions HKEX for further upside, justifying the Buy rating with a target price of HK$470.00.

In another report released on June 8, Morgan Stanley also reiterated a Buy rating on the stock with a HK$500.00 price target.