Hong Kong Exchanges and Clearing (HKEX) (00388.HK) had a strong performance in the first three quarters of 2024, with its revenue and other income and profit hitting the second highest on record, the average daily turnover for northbound trading of Stock Connect and Bond Connect hitting a nine-month high, and the average daily number of derivative contracts traded hitting a record high for the same period, UBS said in a research note.
The strong momentum has continued into the fourth quarter, with the Hong Kong Stock Exchange’s average daily trading turnover reaching HK$286 billion in October, and the average daily number of derivative contracts traded exceeding 2 million, the bank said.
Looking ahead, UBS maintained a cautiously optimistic outlook for the fourth quarter of 2024 and 2025, considering the factors such as the potential stimulus measures from mainland China, the support from the PBOC’s interest rate cuts for the stock market, as well as the continued impact of global macroeconomic and geopolitical uncertainties,
UBS cut the forecast of average daily turnover forecast for Hong Kong equities from HK$134 billion to HK$131 billion, and maintained its 2025/ 2026 ADT forecasts at HK$146 billion and HK$162 billion, respectively
The bank kept the rating on HKEX stocks at Neutral, and lowered its target price slightly to HK$344 from HK$347.