Goldman Sachs cut target price of HKEX, kept it on Conviction Buy list

 

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Goldman Sachs cut target price of HKEX by 1% to HK$437 from HK$441, but kept it on Conviction Buy list.

It’s reported that HKEX may lower the IPO market capitalization threshold for specialist tech companies, which could boost HKEX’s cash equity ADT (average trading turnover) by about 10% under a bull market scenario, Goldman Sachs said in a research note. 

New listing rules for HKEX and clearer regulatory requirements for Chinese firms pursuing overseas listing will likely result in a pick-up in the number of IPOs on the Hong Kong bourse. The bank anticipated that HKEX’s IPO pipeline will likely rebuild on the back of the recuperating confidence of both issuers and investors. 

The volume upcycle was forecast to continue to be underpinned by the recovery of macroeconomic conditions and corporate earnings, as well as the clarity surrounding listing rules, the bank said.