Goldman Sachs Sees Attractive HKEX Risk-Reward, Citing ADT Growth, IPO Expansion and Treasury Futures
Goldman Sachs maintained its positive rating on Hong Kong Exchanges and Clearing Ltd.
Goldman Sachs maintained its positive rating on Hong Kong Exchanges and Clearing Ltd. The target corresponds to a 2027 forecast price-to-earnings ratio of 34 times.
The report said expansion of the IPO pipeline has raised the contribution of new listings to average daily turnover (ADT) to 11%. Alongside increased northbound trading activity driven by cross-strait AI supply-chain investment, the trend provides structural growth support for FIC products.
The newly launched offshore government-bond futures are expected to provide about 12% upside to 2025 revenue.
Goldman Sachs’ bottom line is that HKEX is in a three-pronged growth phase driven by structural ADT growth, an IPO recovery and new derivatives products.
The report is bullish on HKEX. It said the current ADT growth trend is already partly reflected in the share price, while the revenue contribution from offshore government-bond futures, estimated at 12%, and the durability of the IPO pipeline expansion have not yet been fully priced in.
Catalysts include a continued recovery in the IPO market and major new listings, growth in offshore government-bond futures trading volume, and trends in northbound trading activity. Key indicators to monitor are ADT, IPO proceeds and derivatives trading volume.
The report said expansion of the IPO pipeline has raised the contribution of new listings to average daily turnover (ADT) to 11%. Alongside increased northbound trading activity driven by cross-strait AI supply-chain investment, the trend provides structural growth support for FIC products.
The newly launched offshore government-bond futures are expected to provide about 12% upside to 2025 revenue.
Goldman Sachs’ bottom line is that HKEX is in a three-pronged growth phase driven by structural ADT growth, an IPO recovery and new derivatives products.
The report is bullish on HKEX. It said the current ADT growth trend is already partly reflected in the share price, while the revenue contribution from offshore government-bond futures, estimated at 12%, and the durability of the IPO pipeline expansion have not yet been fully priced in.
Catalysts include a continued recovery in the IPO market and major new listings, growth in offshore government-bond futures trading volume, and trends in northbound trading activity. Key indicators to monitor are ADT, IPO proceeds and derivatives trading volume.