Is Hong Kong Exchanges and Clearing (SEHK:388) Pricing In Too Much Optimism After 50% Year Gain?

Simply Wall St.01-21

If you are wondering whether Hong Kong Exchanges and Clearing is attractively priced right now, you are not alone. This article focuses squarely on what the current share price might be implying. The ...

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The ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/is-hong-kong-exchanges-and-clearing-sehk388-pricing-in-too-m\">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>Is Hong Kong Exchanges and Clearing (SEHK:388) Pricing In Too Much Optimism After 50% Year Gain?</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\">\nIs Hong Kong Exchanges and Clearing (SEHK:388) Pricing In Too Much Optimism After 50% Year Gain?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-21 19:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/is-hong-kong-exchanges-and-clearing-sehk388-pricing-in-too-m><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Hong Kong Exchanges and Clearing is attractively priced right now, you are not alone. This article focuses squarely on what the current share price might be implying. The ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/is-hong-kong-exchanges-and-clearing-sehk388-pricing-in-too-m\">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":"FT_SY_HEX","symbol_name":"港交所","start_time":0,"source_url":"https://simplywall.st/stocks/hk/diversified-financials/hkg-388/hong-kong-exchanges-and-clearing-shares/news/is-hong-kong-exchanges-and-clearing-sehk388-pricing-in-too-m","article_id":"2605045431","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/is-hong-kong-exchanges-and-clearing-sehk388-pricing-in-too-m","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605045431","pubTimestamp":1768994629,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Hong Kong Exchanges and Clearing is attractively priced right now, you are not alone. This article focuses squarely on what the current share price might be implying.\nThe stock last closed at HK$427.40, with a 7 day return of a 1.7% decline, a 30 day return of 5.0%, a year to date return of 2.8%, a 1 year return of 50.1%, a 3 year return of 26.7%, and a 5 year return of a 4.3% decline. These figures will naturally have investors thinking about how much optimism...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"80388":"香港交易所-R","LU0052750758.USD":"富兰克林中国基金A Acc","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU1226287529.USD":"UBS (LUX) KEY SELECTION SICAV - CHINA ALLOCATION  OPPORTUNITY (USD) \"P\" (USD) ACC","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","00388":"香港交易所","LU0873338254.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) INC","LU0384037296.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AT\" (USD) ACC","LU0196878994.USD":"MANULIFE GF CHINA VALUE \"AA\" (USD) INC","SG9999004220.SGD":"Nikko AM Shenton Asia Dividend Equity Fund  SGD","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","SG9999002463.SGD":"LionGlobal China Growth SGD","LU0540923850.HKD":"ALLIANZ HONG KONG EQUITY \"A\" (HKD) INC","LU0762541174.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM2\" (USD) INC","LU0048580855.USD":"富达大中华区A","LU0791590937.USD":"ALLSPRING  EMERGING MARKTES EQUITY INCOME \"A\" (USD)","LU0797268264.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (HKD) ACC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","HKXCY":"香港交易所ADR","LU1051768304.USD":"贝莱德新兴市场股票收益A6","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU0456846285.SGD":"JPMorgan Funds - Greater China A (acc) SGD","LU0048597586.USD":"富达亚洲焦点A","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","LU0634319403.HKD":"ALLIANZ HONG KONG EQUITY \"AT\" (HKD) ACC","LU1504937902.USD":"CT (LUX) I ASIAN EQUITY INCOME \"DUP\" (EUR) INC","LU0149721374.USD":"HSBC GIF HONG KONG EQUITY \"AD\" INC","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU0359201612.USD":"贝莱德中国基金A2","LU0605514214.HKD":"FIDELITY CHINA CONSUMER \"A\" (HKD) ACC","LU0630378429.USD":"HSBC GIF ASIA PACIFIC EX JAPAN EQ HD \"AM2\" (USD) INC","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","BK1131":"金融交易所和数据","IE00BKZH1Z71.USD":"BNY MELLON ASIAN INCOME \"B\" (USD) ACC","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","LU0630378692.HKD":"HSBC GIF ASIA PACIFIC EX JAPAN EQ HD \"AM2\" (HKD) INC","IE0003795394.USD":"BNY MELLON ASIAN EQUITY \"A\" (USD) ACC","LU0791591158.USD":"ALLSPRING  EMERGING MARKTES EQUITY INCOME \"I\" (USD) ACC","BK1610":"ETF&股票定投概念","LU0561508036.HKD":"ALLIANZ CHINA EQUITY \"A\" (HKD) INC","LU0096374516.USD":"CT (LUX) I ASIA EQUITY INCOME \"DU\" (USD) ACC","LU0061477393.USD":"CT (LUX) I ASIA EQUITY INCOME \"AU\" (USD) ACC","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","SG9999001093.SGD":"United Greater China Fund A Acc SGD","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H"},"translate_title":"香港交易及结算所(SEHK：388)在全年上涨50%后的定价是否过于乐观？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"80388":0.6,"HEXmain":0.6,"00388":0.9,"HKXCY":0.6},"content_text":"If you are wondering whether Hong Kong Exchanges and Clearing is attractively priced right now, you are not alone. This article focuses squarely on what the current share price might be implying. The stock last closed at HK$427.40, with a 7 day return of a 1.7% decline, a 30 day return of 5.0%, a year to date return of 2.8%, a 1 year return of 50.1%, a 3 year return of 26.7%, and a 5 year return of a 4.3% decline. These figures will naturally have investors thinking about how much optimism is already reflected in the price. Recent market attention on Hong Kong Exchanges and Clearing has been influenced by ongoing discussions around Hong Kong's role as a capital markets hub and how trading volumes may affect exchange operators. These themes help frame why the share price has moved the way it has and why valuation is such a key question for investors right now. On our checks, Hong Kong Exchanges and Clearing scores 0 out of 6 for valuation, giving it a value score of 0/6. Next we will look at what different valuation methods say about that pricing, and then finish with a simple framework that can help you think about value in an even more useful way.  Hong Kong Exchanges and Clearing scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Hong Kong Exchanges and Clearing Excess Returns Analysis The Excess Returns model looks at how much profit a company is expected to earn above the return that equity investors require, then adds the present value of those “excess” profits to today’s book value per share. For Hong Kong Exchanges and Clearing, the model starts with a Book Value of HK$42.86 per share and a Stable Book Value estimate of HK$47.12 per share, based on weighted future book value estimates from 12 analysts. The Stable EPS estimate is HK$14.76 per share, sourced from weighted future return on equity estimates from 17 analysts. The Cost of Equity is HK$3.81 per share, so the Excess Return is HK$10.95 per share. That excess is underpinned by an average Return on Equity of 31.33%, which is what the model uses to gauge the profitability of the company’s equity base over time. Pulling these inputs together, the Excess Returns model arrives at an intrinsic value of about HK$254.74 per share. Compared with the recent share price of HK$427.40, this framework suggests the stock is around 67.8% overvalued. Result: OVERVALUED Our Excess Returns analysis suggests Hong Kong Exchanges and Clearing may be overvalued by 67.8%. Discover 872 undervalued stocks or create your own screener to find better value opportunities. 388 Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Hong Kong Exchanges and Clearing. Approach 2: Hong Kong Exchanges and Clearing Price vs Earnings For a profitable company, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. It connects directly to how quickly earnings might change over time and how predictable those earnings are, which is why many investors keep an eye on it. In general, higher growth expectations and lower perceived risk can justify a higher P/E ratio, while slower growth or higher uncertainty usually point to a lower, more conservative multiple. So a “normal” or “fair” P/E is not one size fits all. It depends on the company’s specific profile. Hong Kong Exchanges and Clearing currently trades on a P/E of 31.41x. That sits above the Capital Markets industry average of 20.05x and above the peer group average of 12.86x. Simply Wall St’s Fair Ratio for the stock is 12.62x, which is a proprietary estimate of what the P/E could be given factors like earnings growth, profit margins, size, risk profile and the industry it operates in. Because it blends these company specific inputs, the Fair Ratio can be more tailored than a simple comparison with broad industry or peer averages. With the current 31.41x P/E sitting well above the 12.62x Fair Ratio, the shares screen as expensive on this metric. Result: OVERVALUED SEHK:388 P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Hong Kong Exchanges and Clearing Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your own story about Hong Kong Exchanges and Clearing linked directly to the numbers you think are reasonable for its future revenue, earnings, margins and fair value. Instead of only looking at a P/E or a model output, a Narrative lets you connect what you believe about the company to a clear financial forecast and then to a fair value that you can compare with today’s share price. On Simply Wall St, millions of investors build and share these Narratives on the Community page, and the platform keeps them updated when new news, earnings or other data points arrive. This makes it easier for you to decide whether the gap between Fair Value and the current price suggests you might want to buy, hold or sell, based on your own assumptions. For example, one Hong Kong Exchanges and Clearing Narrative might assume a relatively cautious earnings outlook and arrive at a lower fair value, while another could factor in stronger profitability and land on a higher fair value. This gives you a clear sense of where your view sits on that spectrum. Do you think there's more to the story for Hong Kong Exchanges and Clearing? Head over to our Community to see what others are saying! SEHK:388 1-Year Stock Price Chart  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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