Understanding the Market | HKEX is currently down over 4%, with increased uncertainty in overseas liquidity. UBS maintains a "Neutral" rating on HKEX
HKEX is currently down over 4%, as of the time of writing, down 4.02% to HKD 286.4, with a trading volume of HKD 2.221 billion. Shenwan Hongyuan pointed out that the Federal Reserve is expected to cut interest rates by 25 basis points in November, and the pace of rate cuts may slow down next year after Trump's election. The firm noted that the divergence in U.S. economic data and subsequent policy changes have increased uncertainty regarding the pace of rate cuts by the Federal Reserve in 2025, shifting the focus of catalysts for the Hong Kong stock market back to the economic prosperity of mainland China. It recommends stocks that are highly sensitive to performance rates, such as HKEX. UBS previously released a research report stating that considering recent market activities and its latest views on rate cuts, Trump's return to the White House is expected to lead to a more moderate path for future rate cuts by the Federal Reserve. It raised its earnings per share forecasts for HKEX for this year through 2026 by 1%, 3%, and 3%, to HKD 10.36, HKD 9.83, and HKD 10.12, respectively, with the target price slightly increased from HKD 344 to HKD 346, maintaining a "Neutral" rating
According to Zhitong Finance APP, the Hong Kong Exchanges and Clearing Limited (00388) is currently down over 4%, with a drop of 4.02% as of the time of writing, priced at HKD 286.4, with a transaction volume of HKD 2.221 billion.
Shenwan Hongyuan pointed out that the Federal Reserve is expected to cut interest rates by 25 basis points in November, and the pace of rate cuts may slow down next year after Trump's election. The firm noted that the divergence in U.S. economic data and subsequent policy changes have increased uncertainty regarding the pace of rate cuts by the Federal Reserve in 2025, shifting the focus of catalysts for the Hong Kong stock market back to the economic prosperity of mainland China. They recommend stocks that are highly sensitive to performance rates, such as the Hong Kong Exchanges and Clearing Limited.
UBS previously released a research report stating that considering recent market activities and its latest views on rate cuts, Trump's return to the White House is expected to lead to a more moderate path for future rate cuts by the Federal Reserve. They raised their earnings per share forecasts for the Hong Kong Exchanges and Clearing Limited for this year through 2026 by 1%, 3%, and 3%, to HKD 10.36, HKD 9.83, and HKD 10.12, respectively. The target price was slightly raised from HKD 344 to HKD 346, with a rating of "Neutral."