According to the research report released by UBS, Hong Kong Exchanges and Clearing Limited (00388) is rated neutral, taking into account the performance of the market since the second quarter of this year. The daily average trading volume forecast for 2024 to 2026 was adjusted from 104 billion yuan, 118 billion yuan and 134 billion yuan to 112 billion yuan, 125 billion yuan and 139 billion yuan. The earnings per share forecast for the same period was also raised by 5%, 4% and 3%, respectively, to 9.8 yuan, 10.1 yuan and 10.4 yuan. The target price was raised from HKD 262 to HKD 275.

The report stated that the daily average turnover of the Hong Kong Exchanges and Clearing Limited on May increased by 38% and 25% YoY and by month respectively to 140 billion yuan, mainly due to the improved market sentiment, and the annualized speed increased by 33 percentage points YoY to 106%. The daily average turnover of the southbound increased by 99% YoY to 56 billion yuan, and its contribution to the overall daily average turnover increased from 34% in April to 40% last month. The bank said that whether the rebound in daily average turnover can continue for the remainder of 2024 will depend on the performance of Hong Kong stocks and the implementation of policies, such as exempting southbound investors from dividend tax.