UBS: Gives HKEX (00388) "neutral" rating with a target price of 253 Hong Kong dollars.

UBS released a research report stating that it has given a "Neutral" rating to the Hong Kong Stock Exchange (00388), predicting that the average daily turnover in the second half of 2024 and the 2024 fiscal year will reach 104.4 billion and 107.4 billion respectively, a year-on-year increase of 10% and 2%. The target price for the next 12 months is 253 Hong Kong dollars. The report mentioned that the average daily turnover of the Hong Kong Stock Exchange from August to yesterday fell by 6% year-on-year to 95.5 billion, and has been declining since May. Looking ahead, it is expected that the overall average daily turnover in the third quarter of this year will be around 96.3 billion, followed by a recovery in the fourth quarter, possibly supported by a rate cut. The bank stated that compared to the spot market, the derivatives market remains a resilient source of income, and Alibaba-SW (09988) was included in the Hong Kong stock connect on September 9, but the expected impact of the above measures on the Hong Kong stock exchange's balance sheet is limited.