Analysts at Jefferies have issued a research report stating that the quality and demand for initial public offerings (IPOs) at Hong Kong Exchanges and Clearing Ltd (HKEX) have shown significant improvement. The report notes a reduction in the rate of post-listing price declines, increased support from institutional investors, and manageable risks associated with the expiration of lock-up periods. The rotation into the artificial intelligence (AI) sector and selling pressure in the South Korean stock market are seen as creating entry opportunities. Consequently, Jefferies has increased its target price for the exchange from HK$502 to HK$513 while reiterating its "Buy" rating.
The firm has also raised its profit forecasts for HKEX for the 2026 and 2027 fiscal years by 5% and 6%, respectively. The new estimates are HK$18.579 billion for 2026 and HK$19.42 billion for 2027. These adjustments reflect expectations for higher average daily turnover, increased IPO fundraising, and greater net interest income.
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