Goldman Sachs has released a research report predicting HKEX (00388.HK)  -2.400 (-0.539%)    Short selling $298.03M; Ratio 16.082%   's 3Q25 investment income to reach about half the level of 1H25, reflecting a decline in HIBOR from May to August, shrinking external investment portfolios, and the revision of the interest rate sharing agreement for margin funds.

As Southbound trading is estimated to account for around 30-40% of the YoY growth in overall average daily turnover (ADT), Southbound trading and overall ADT will determine the short-term stock price trend. Accordingly, Goldman Sachs forecasted an ADT of around HKD260 billion from October to December 2025, with EPS nearing the consensus.

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Goldman Sachs also considers Southbound trading as a unique factor in this upward cycle, which will contribute more to the overall ADT. While the market may feel uncertain about the future capital flows of Southbound trading, the broker remains confident that the flow and participation in Southbound trading should structurally increase given the diversification, unique stocks, and valuation discounts (higher yield) offered by the Southbound trading market.

Goldman Sachs has raised its 12-month target price for HKEX from HKD524 to HKD544, with a Buy rating remaining in place.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-09-22 16:25.)