Citi: Maintains "Buy" rating on HKEX (00388) with a target price of HK$495.

Citigroup released a research report stating that it believes HKEX (00388) has demonstrated robust performance, which may help boost market sentiment towards the stock, setting a target price of HKD 495 and maintaining a "Buy" rating. In the second quarter, the Hong Kong Stock Exchange's attributable profit to shareholders was HKD 5.4 billion, a quarter-on-quarter increase of 4% and a year-on-year increase of 21%, exceeding market expectations and the bank's forecasts by 13% and 7%, respectively. Core revenue rose 5% quarter-on-quarter and 31% year-on-year, surpassing market expectations by 8%, benefiting from strong trading in equity securities. Investment income was HKD 1.3 billion, remaining flat quarter-on-quarter and down 17% year-on-year, but exceeding market expectations by 23%. However, after excluding the HKD 290 million non-listed equity investment income during the period, the investment income fell short of market expectations by 5%. Operating expenses increased by 8% year-on-year, 1% higher than market expectations. The interim dividend is HKD 7.43 per share, with a payout ratio maintained at around 89%.