HKEX (00388.HK) -2.000 (-0.525%) Short selling $236.62M; Ratio 22.792% is well-prepared for the delisting of Chinese ADRs, Morgan Stanley’s research report indicated. Mainland financial institutions were believed to be able to provide liquidity to the Hong Kong market through the Stock Connect to ensure a smooth transition. The broker estimated that shifting ADV to HKEX could boost its revenue by approximately 9%. Morgan Stanley raised its target price for HKEX from HKD387 to HKD440, maintaining an Overweight rating.Related NewsHSBC Research Envisions Fed to Cut Rates by 25 bps Each in Jun/ Sep/ Dec 2025Despite ongoing uncertainties from U.S. tariff hikes, the broker viewed China’s increasingly innovation-driven growth model and the bottoming of financial risk cycles as playing a more pivotal role in supporting Hong Kong’s IPO and trading activities. Based on market conditions, the broker revised its ADV assumptions upward, forecasting an ADV of HKD190 billion in 2026. In an upbeat case, considering potential ADV growth from improved market sentiment, the 2026 ADV could reach HKD250 billion.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-15 12:25.)