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HSBC Research Cuts HKEX TP to HKD502, Maintains Buy Rating
2026-07-10 16:21:33
Market concerns over regulation affecting HKEX (00388.HK) may have been largely priced in, and the actual impact on its operations was expected to be limited, HSBC Global Investment Research issued a report saying.

The broker considered there are four key reasons supporting HKEX potentially outperforming the broader market, including higher-than-expected ADT and IPO activity, rising revenue from Northbound Stock Connect, progress in its fixed income and currency (FIC) ecosystem, and continued expansion of products and infrastructure amid earlier regulatory tightening.

The broker raised its earnings forecasts for HKEX for 2026-28 by 1.3-5.1% and maintained its Buy rating. However, owing to ongoing regulatory uncertainties, it increased the cost of equity assumption, leading to a reduction in the TP from HKD528 to HKD502.
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