Bank of America Securities released a report stating that Hong Kong Exchanges and Clearing (00388.HK) fell 13% from its high in May, while the Hang Seng Index fell by 8% over the same period. The current valuation is 27 times the PE ratio in 2024. Due to the average daily turnover of the Hong Kong stock market rising from HKD 99 billion in the first quarter to HKD 126 billion in the second quarter, the bank expects that Hong Kong Exchanges and Clearing's profit in the second quarter will turn to growth. IPO business is a focus of attention.

In addition, the bank pointed out that as July 1 approaches, the mainland is expected to announce more details about the policies previously announced to support the Hong Kong market in the next two to three weeks, such as expanding the ETF connectivity scheme and including real estate investment trusts in the "Shanghai-Hong Kong Stock Connect" scheme. If there is a reduction in dividend tax or other policies, it will bring surprises, but it is not within the bank's basic assumptions. As it is expected that the Hong Kong Exchanges and Clearing will be the main beneficiary, it reaffirms the "buy" rating.