JP Morgan: Raises HKEX (00388) target price to 500 Hong Kong dollars, upgrades rating to "hold"

J.P. Morgan released a research report stating that the daily average trading volume of HKEX (00388) has been consistently at a high level, believed to be influenced by factors such as capital flows, the Southbound trading channel, IPOs, and improvements in the A-share market. The bank said that market visibility on the medium-term prospects of the Hong Kong Stock Exchange would usually lead to a reevaluation of PE multiples. As a result, the target price has been raised from HK$400 to HK$500, and the rating has been upgraded from "Neutral" to "Overweight". J.P. Morgan stated that based on expectations of higher daily average trading volume for the Hong Kong Stock Exchange, it is forecasted to reach HK$235 billion, HK$250 billion, and HK$252 billion for the fiscal years 2025 to 2027, respectively. They have correspondingly increased their earnings per share forecasts by 5% to 16%. Additionally, the bank expects the Hong Kong Stock Exchange to report a first-half profit of HK$4.93 billion, with a profit of HK$2.399 billion for the second quarter.