CICC released a research report stating that it maintained the “outperforming industry” rating on the Hong Kong Stock Exchange (00388) and lowered this year's profit forecast by 5% to 12.2 billion yuan and next year's profit by 4% to 13.4 billion yuan, taking into account changes in the interest rate environment and market fluctuations. Due to fluctuating market sentiment, the target price was lowered by 14% to HK$310. The Hong Kong Stock Exchange plans to disclose first-quarter results on April 24. The bank expects revenue to drop 7% year on year to 5.17 billion yuan. Excluding investment income, main operating expenses revenue will drop 4% year on year to 3.84 billion yuan, and profit will drop 15% year on year to 2.89 billion yuan.
The bank pointed out that due to marginal improvements in spot trading and an increase in activity in superimposed derivatives and commodity trading, the Hong Kong Stock Exchange's main fee revenue performance is expected to be steady. On the spot side, Hong Kong stocks showed a steady trend in the first quarter, and activity improved quarterly. The average daily transaction amount fell 22% year on year to 99.4 billion yuan. Among them, the average daily transaction amount of Southbound fell 17% year over year to 31 billion yuan, accounting for 15.6% of Hong Kong stocks, and the average daily trading amount of North China was increased 37% to 133 billion yuan, accounting for 8% of A shares; the average daily trading volume of stock index futures and options increased 14% year on year to 858,000 shares; the average daily trading volume of commodity LME increased 31% year on year to 696,000 shares; total IPOs were completed in the first quarter 12 companies, financing amount of 4.6 billion yuan , a year-on-year decrease of 31%.