Western Securities: The direction for Hong Kong stocks to align with mainstream global markets is clear; bullish on the long-term allocation value of Hong Kong Exchanges and Clearing (00388.HK).

Zhitong Finance APP has learned that Western Securities issued a research report stating that on October 16, Hong Kong Exchanges and Clearing Limited (00388.HK) published the "Consultation Conclusions on Shortening the Settlement Cycle of the Hong Kong Cash Equities Market" and the implementation roadmap. Under the overseas interest rate hike environment, Hong Kong stock ADT in September was -36.25% year-on-year, and the decline in liquidity exerted phased pressure on performance and valuation; however, the implementation of T+1 will promote improved capital efficiency, and coupled with the deepening of Stock Connect and the continued advancement of listing system reforms, the midpoint of Hong Kong stock trading activity is expected to rise. The company's allocation value is viewed favorably over the medium and long term. It is estimated that the company's net profit attributable to shareholders in 2026 will increase by +11.5% year-on-year to RMB 19.79 billion.