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Hong Kong Exchanges & Clearing (HKXCY)
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Hong Kong Exchanges & Clearing (HKXCY) AI Stock Analysis

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HKXCY

Hong Kong Exchanges & Clearing

(OTC:HKXCY)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
$58.00
â–²(6.03% Upside)
The overall stock score of 65 reflects strong financial performance with robust profitability and low leverage. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The decline in revenue growth also poses a risk to future performance.

Hong Kong Exchanges & Clearing (HKXCY) vs. SPDR S&P 500 ETF (SPY)

Hong Kong Exchanges & Clearing Business Overview & Revenue Model

Company DescriptionHong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong, Mainland China, and the United Kingdom. It operates through five segments: Cash, Equity and Financial Derivatives, Commodities, Post Trade, and Technology. The Cash segment covers various equity products traded on the cash market platforms of the Stock Exchange of Hong Kong Limited, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange; sale of market data relating to the products; and other related activities. The Equity and Financial Derivatives segment provides and maintains trading platforms for a range of equity and financial derivative products, such as stock and equity index futures and options, derivative warrants, and callable bull/bear contracts and warrants, as well as sells related market data. The Commodities segment operates an exchange for the trading of base, ferrous, and precious metals futures and options contracts in the United Kingdom; and operates Qianhai Mercantile Exchange Co., Ltd., a commodity trading platform in the Mainland. This segment also covers commodities contracts traded on Futures Exchange. The Post Trade segment operates clearing houses that are responsible for clearing, settlement, depository, custodian, and nominee services. The Technology segment offers various services that provide users with access to the platform and infrastructure. The company serves issuers and investors. Hong Kong Exchanges and Clearing Limited is based in Central, Hong Kong.
How the Company Makes MoneyHKXCY generates revenue through multiple key streams. The primary source of income comes from transaction fees charged on trades executed on its platforms, which includes commissions from both buyers and sellers. Additionally, the company earns revenue from listing fees paid by companies when they go public and from annual fees charged to listed companies. Clearing and settlement services also contribute significantly to its revenue, as HKEX charges fees for the clearing of trades and the maintenance of accounts. Furthermore, data services, including market data and information products, provide another stream of income. Strategic partnerships with global financial institutions and initiatives to expand its product offerings and market reach also enhance HKEX's revenue potential.

Hong Kong Exchanges & Clearing Financial Statement Overview

Summary
Strong profitability is indicated by high net profit and EBIT margins. The balance sheet reflects financial stability with low leverage and a solid equity position. Cash flow remains stable with positive growth. However, the decline in revenue growth poses a concern.
Income Statement
78
Positive
The company has demonstrated strong profitability with a consistent net profit margin of around 75% and a healthy EBIT margin of over 85%. However, there is a noticeable decline in total revenue from 2023 to 2024, indicating a revenue growth rate of -14.94%, which is a concern for future growth.
Balance Sheet
85
Very Positive
The balance sheet shows robust equity levels with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage and financial stability. The equity ratio is around 14.11%, highlighting a solid equity position. Return on equity remains strong at 24.23%, demonstrating efficient use of equity to generate profits.
Cash Flow
80
Positive
The company has a stable cash flow position with a slight increase in free cash flow from 2023 to 2024, resulting in a free cash flow growth rate of 10.43%. The operating cash flow to net income ratio is close to 1, reflecting efficient cash generation from operations relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.71B17.35B20.39B18.27B20.75B19.05B
Gross Profit19.95B12.94B19.52B17.48B19.98B18.35B
EBITDA21.30B22.15B20.87B12.29B16.34B13.91B
Net Income15.44B13.05B11.86B10.08B12.54B11.51B
Balance Sheet
Total Assets424.87B381.63B341.18B406.05B399.30B399.11B
Cash, Cash Equivalents and Short-Term Investments282.46B230.91B224.70B276.39B342.33B328.61B
Total Debt873.00M1.29B2.05B2.24B2.06B2.78B
Total Liabilities367.42B327.22B289.38B355.95B349.39B349.87B
Stockholders Equity56.91B53.85B51.34B49.73B49.63B48.92B
Cash Flow
Free Cash Flow0.0011.17B10.11B13.67B11.27B13.42B
Operating Cash Flow0.0012.77B11.50B14.96B12.34B14.77B
Investing Cash Flow0.003.19B-6.29B-1.70B2.28B-7.48B
Financing Cash Flow0.00-11.26B-11.25B-10.37B-12.67B-7.47B

Hong Kong Exchanges & Clearing Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price54.70
Price Trends
50DMA
56.39
Negative
100DMA
54.75
Negative
200DMA
48.89
Positive
Market Momentum
MACD
-0.61
Positive
RSI
44.69
Neutral
STOCH
47.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKXCY, the sentiment is Neutral. The current price of 54.7 is below the 20-day moving average (MA) of 56.02, below the 50-day MA of 56.39, and above the 200-day MA of 48.89, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HKXCY.

Hong Kong Exchanges & Clearing Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$24.97B27.9920.64%1.09%18.99%17.97%
78
Outperform
$87.56B39.4657.08%0.78%8.77%13.62%
77
Outperform
$97.14B26.1213.35%3.97%5.84%8.51%
73
Outperform
$50.50B31.5314.07%1.17%16.41%68.03%
71
Outperform
$90.24B30.2610.89%1.20%11.44%29.10%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
$69.22B39.4728.32%2.41%26.09%17.40%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HKXCY
Hong Kong Exchanges & Clearing
54.70
15.37
39.08%
CBOE
Cboe Global Markets
238.75
28.30
13.45%
CME
CME Group
269.54
51.16
23.43%
ICE
Intercontinental Exchange
157.65
-6.94
-4.22%
MCO
Moody's
490.82
32.08
6.99%
NDAQ
Nasdaq
88.44
14.02
18.84%

Hong Kong Exchanges & Clearing Corporate Events

Hong Kong Exchanges & Clearing Reports Record Earnings
Aug 20, 2025

Hong Kong Exchanges & Clearing Ltd. is a leading financial market operator in Asia, facilitating trading, clearing, settlement, and depository services for securities and derivatives. It is renowned for its strategic initiatives and technological advancements in the financial sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025