Hong Kong Exchange (SEHK:388): Evaluating Valuation After Recent Cool-Off in Share Price Momentum

Simply Wall St.11-27

Hong Kong Exchanges and Clearing (SEHK:388) shares have drawn investor attention following their recent price moves. Given the platform’s central role in Asia’s financial markets, these fluctuations ...

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Given the platform’s central role in Asia’s financial markets, these fluctuations ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/hong-kong-exchange-sehk388-evaluating-valuation-after-recent\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hong Kong Exchange (SEHK:388): Evaluating Valuation After Recent Cool-Off in Share Price Momentum</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHong Kong Exchange (SEHK:388): Evaluating Valuation After Recent Cool-Off in Share Price Momentum\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-27 14:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/hong-kong-exchange-sehk388-evaluating-valuation-after-recent><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Hong Kong Exchanges and Clearing (SEHK:388) shares have drawn investor attention following their recent price moves. Given the platform’s central role in Asia’s financial markets, these fluctuations ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/hong-kong-exchange-sehk388-evaluating-valuation-after-recent\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0348825331.USD","symbol_name":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","start_time":0,"source_url":"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/hong-kong-exchange-sehk388-evaluating-valuation-after-recent","article_id":"2586684246","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/1033402-choice2-main-header/1585186850577"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/hong-kong-exchange-sehk388-evaluating-valuation-after-recent","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586684246","pubTimestamp":1764225761,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Hong Kong Exchanges and Clearing (SEHK:388) shares have drawn investor attention following their recent price moves. Given the platform’s central role in Asia’s financial markets, these fluctuations are often viewed in relation to broader market trends.\nSee our latest analysis for Hong Kong Exchanges and Clearing.\nAfter a remarkable rally earlier in the year, Hong Kong Exchanges and Clearing’s share price has cooled recently, with a 4.8% decline over the past month and a slight dip in the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"80388":"香港交易所-R","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU1211504680.USD":"ALLIANZ HIGH DIVIDEND ASIA PACIFIC EQUITY \"AM\" (USD) INC","LU0791591158.USD":"ALLSPRING  EMERGING MARKTES EQUITY INCOME \"I\" (USD) ACC","LU0052750758.USD":"富兰克林中国基金A Acc","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","00388":"香港交易所","LU0918141705.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AM\" (HKD) INC","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU0762542818.HKD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM\" (HKD) INC","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","LU0106959298.USD":"UBS (LUX) EQUITY FUND - EMERGING MARKETS SUSTAINABLE LEADERS (USD) \"P\" (USD) ACC","LU0149534421.HKD":"SCHRODER ISF HONG KONG EQ \"A\" ACC","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU0955623706.USD":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) ACC","LU1807302812.USD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (USD) ACC","LU0211977185.USD":"EASTSPRING INVESTMENTS GREATER CHINA EQUITY \"A\" ACC","LU0955648018.USD":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) INC MF","LU1734074674.USD":"NINETY ONE GSF ASIA PACIFIC FRANCHISE \"A\"(USD) ACC","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","LU0048580855.USD":"富达大中华区A","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0819123356.HKD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"AC\" (HKD) ACC","LU0873338254.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) INC","LU1051769294.HKD":"BGF EMERGING MARKETS EQUITY INCOME \"A6\"(HKDHDG) INC","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","IE00BZ08YT58.USD":"GUINNESS BEST OF CHINA \"C\" (USD) ACC","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","LU1366334651.USD":"ALLSPRING EMERGING MARKETS EQUITY INCOME \"I\" (USD) INC","HKXCY":"香港交易所ADR","LU0314109678.HKD":"MANULIFE GF DRAGON GROWTH \"AA\" (HKD) INC","SG9999002562.SGD":"LionGlobal Asia Pacific SGD","LU0819121731.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"AC\" (USD) ACC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0370786039.SGD":"Fidelity Greater China A-SGD","LU0072462343.USD":"贝莱德亚洲巨龙基金","LU0540923850.HKD":"ALLIANZ HONG KONG EQUITY \"A\" (HKD) INC","SG9999002463.SGD":"LionGlobal China Growth SGD","LU0634319403.HKD":"ALLIANZ HONG KONG EQUITY \"AT\" (HKD) ACC","LU0594300179.USD":"FIDELITY CHINA CONSUMER \"A\" (USD) ACC","SG9999001051.SGD":"United Asia Fund SGD","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD"},"translate_title":"香港交易所（SEHK：388）：近期股价势头降温后评估估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"80388":0.6,"00388":0.9,"HEXmain":0.6,"HKXCY":0.6},"content_text":"Hong Kong Exchanges and Clearing (SEHK:388) shares have drawn investor attention following their recent price moves. Given the platform’s central role in Asia’s financial markets, these fluctuations are often viewed in relation to broader market trends. See our latest analysis for Hong Kong Exchanges and Clearing. After a remarkable rally earlier in the year, Hong Kong Exchanges and Clearing’s share price has cooled recently, with a 4.8% decline over the past month and a slight dip in the most recent trading session. Still, its year-to-date share price return is an impressive 44%, with long-term investors enjoying a strong 46% total shareholder return over the past year. This suggests the overall momentum, while briefly tempered, remains firmly positive. If you’re interested in other opportunities with compelling growth stories and notable investor confidence, now’s the perfect moment to discover fast growing stocks with high insider ownership With shares still trading nearly 21% below the average analyst price target and strong recent returns, the key question is whether Hong Kong Exchanges and Clearing is undervalued at current levels or if the market has already accounted for its future growth. AdvertisementMost Popular Narrative: 17.9% Undervalued Hong Kong Exchanges and Clearing’s last close was well below the narrative’s estimated fair value, setting expectations for potential price upside if targets are reached. This gap is explained by robust profitability assumptions and operational initiatives that could catalyze further gains, according to the most widely followed outlook.  HKEX has firmly positioned itself as a global gateway between China and the world, with strong growth in Southbound and Northbound Connect volumes, expanding access for Mainland and international investors, and upcoming initiatives such as Southbound RMB counters and expanded product eligibility. These are likely to drive further increases in trading and listing-related revenues.  Read the complete narrative. Earnings resilience, margin expansion, and new investment channels are just the start. But what hidden projections drive this double-digit undervaluation? The real surprises lie in the numbers behind the narrative’s fair value math. Find out which critical financial steps might lead the price higher. Result: Fair Value of $503 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, rapid growth in China’s onshore exchanges and shifting regulatory climates could increase competition or reduce trading volumes for Hong Kong Exchanges and Clearing. Find out about the key risks to this Hong Kong Exchanges and Clearing narrative. Another View: Market Multiples Cast Doubt While the narrative-based fair value points to Hong Kong Exchanges and Clearing being undervalued, its current price-to-earnings ratio of 30.4 times is far above both the industry average (23.3x), the peer average (11.6x), and the fair ratio (13.4x) our analysis suggests the market could revert to. This wide gap signals more valuation risk than opportunity. See what the numbers say about this price — find out in our valuation breakdown. SEHK:388 PE Ratio as at Nov 2025 Build Your Own Hong Kong Exchanges and Clearing Narrative If you have a different perspective, or would rather draw your own conclusions, you can build your own take in just a few minutes with Do it your way. A great starting point for your Hong Kong Exchanges and Clearing research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? Make your next move count and avoid missing out on standout investment opportunities by tapping into the latest trends and market shifts with our handpicked screeners.  Boost your income potential by targeting reliable companies in these 15 dividend stocks with yields > 3% featuring yields above 3%. Stay ahead of the tech curve with trailblazers in artificial intelligence found through these 25 AI penny stocks, which power today's innovation wave. Capitalize on strong fundamentals at attractive prices by reviewing these 926 undervalued stocks based on cash flows, which highlights companies with robust cash flows.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Hong Kong Exchanges and Clearing might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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