Lyon: Upgrades Hong Kong Stock Exchange (00388) target price to HKD 540; expansion into new asset classes becomes the key to revaluation.

Lyon has released a research report stating that the Hong Kong Stock Exchange (00388) has shown strong profit growth over the past eight quarters, yet its valuation has remained stagnant. Market focus continues to center on new listings and southbound capital flows. However, the bank believes the key to the next phase of revaluation for the Hong Kong Stock Exchange lies not in the new stock cycle, but in its ability to expand growth engines and reform market microstructure. This includes the development of cryptocurrency-related products and new asset classes such as predictive markets to enhance its strategic position as China's leading offshore market platform. In the long run, a more diversified product portfolio and more resilient profit performance are expected to structurally elevate the valuation of the Hong Kong Stock Exchange. The target price has been raised from HKD 530 to HKD 540, with a "Outperform" rating maintained.