HK Stock Market Move | Hong Kong Stock Exchange (00388) falls again by more than 3%, driving down Hong Kong stock valuation. Institutions say high volatility may continue.

The Hong Kong Stock Exchange (00388) fell more than 3% again, dropping 3% to 419.8 Hong Kong dollars, with a turnover of 44.54 billion Hong Kong dollars as of press time. On the news front, the escalating trade war situation last Friday exceeded market expectations, causing a decline in investor risk appetite and leading to a correction in Hong Kong stock valuations. Huatai stated that the key to short-term directional judgement lies in whether market sentiment has already reached an extreme point. There is still room for further release from the funding side and Hong Kong stock sentiment indicators, and the future path of trade friction in the next one or two weeks shows significant variance, indicating that high-volatility trading may continue. It is worth noting that the Hong Kong Stock Exchange will announce its third-quarter results on November 5th. UBS predicts a year-on-year increase of 43% and 53% in quarterly revenue and net profit, reaching 7.7 billion and 4.8 billion, both hitting new highs. The bank's forecasts are 8% and 11% higher than the market's general expectations. Considering the market sentiment and the increasing participation of southbound funds, UBS has raised its daily turnover forecast for the Hong Kong Stock Exchange from 2025 to 2027 by 9% to 16%, and raised its earnings per share forecast for the Hong Kong Stock Exchange by 7% to 12%, with a target price of 485 Hong Kong dollars and a "Neutral" rating.