Goldman Sachs expects the average daily turnover of the Hong Kong stock market to rise next year after two consecutive years of decline.
The Zhitong Finance app learned that Goldman Sachs released a research report saying that the Hong Kong Stock Exchange (00388) is attractive for risk and return, with an upward potential of 80% and a bearish market with a downward potential of 20%. Based on the dividend discount model (DDM), the target price was lowered 3% from HK$361 to HK$351, reflecting a price-earnings ratio of 34 times in 2025, with a “buy” rating.
Goldman Sachs expects the average daily turnover of the Hong Kong stock market to rise next year after two consecutive years of decline. Since the market value of listed companies in China is at a relatively low level, the trading volume of the Hong Kong Stock Exchange is also at a relatively low level. It is believed that market recovery requires a macroscopic catalyst. In addition to macro factors, it is expected that the Hong Kong Stock Exchange will review pricing units in the second quarter of next year, which will boost trading volume.
The bank expects the revenue of the Hong Kong Stock Exchange to increase by about 10% year-on-year and earnings per share by about 16% year-on-year for fiscal year 2023. Excluding investment income, revenue and earnings per share will decrease by 10% and 22% year-on-year. It is predicted that the average daily turnover of Hong Kong stocks will be 112 billion yuan in 2023, and the average daily turnover in 2024 will rise to 117 billion yuan, slightly higher than the original forecast of 112 billion yuan.