Excerpts from OCBC Investment Research report
Hong Kong Exchanges & Clearing Limited (HKG: 0388)
- A leverage play to market rebound
- Pick up in average daily turnover
- Long-term growth drivers
- Lifting fair value estimate
Pick up in average daily turnover
The Hong Kong Exchanges and Clearing (HKEX) should be structurally well-positioned to take advantage of China’s capital account liberalisation and its turnover is well supported by favourable structural and cyclical trends.
Its capability is also further bolstered by the inclusion of A-shares into MSCI indices as well as listing reforms that open up possibilities of new economy initial public offerings (IPOs) and secondary listings.
Recent average daily turnover (ADT) has picked-up substantially with ADT rising to HKD140b in November and HKD185b month-to-date in December, vs around HKD98b in 3Q22 and HKD123b in the first nine months this year.
This has bucked the trend as cash trading volume is usually seasonality weaker in 4Q...
