The Zhitong Finance App learned that the Hong Kong Stock Exchange (00388) has risen by more than 5%, and has accumulated an increase of more than 20% in the past six trading days. As of press release, it rose 4.32% to HK$261, with a turnover of HK$1,816 billion.
Goldman Sachs published a research report indicating that the Hong Kong Stock Exchange benefited from increased investment income, and net profit per share in the first quarter beat expectations. Since there is no management meeting to announce quarterly results, the bank is expected to drive stock prices by rising average daily turnover (ADT) of equity securities, stock market liquidity reforms, and revenue growth related to derivatives. The market expects ADT to bottom out in the first half of the year and then pick up. The market is expected to increase its earnings per share. Considering the first quarter results and stock market trading since April, the bank raised its earnings estimates by 3%, 2%, and 1% per share from 2024 to 2026, respectively. The target price increased slightly from HK$325 to HK$330, with a rating of “buy”.
Guotai Junan believes that the China Securities Regulatory Commission announced cooperation measures with Hong Kong and the direction of the US dollar interest rate cut cycle is expected to increase, driving the company's revenue growth from 2024 to 2026, thus maintaining the company's earnings estimates of 22.2 billion, 24.3 billion and 26.9 billion HK$26.9 billion, and net profit of HK$13.1 billion, 14.7 billion and HK$16.6 billion.