How Blockbuster IPOs And Niche Listing Rethink At Hong Kong Exchanges (SEHK:388) Has Changed Its Investment Story

• Earlier in 2025, Hong Kong Exchanges and Clearing (HKEX) helped Hong Kong raise nearly HK$275 billion from 106 initial public offerings, with four local firms ranking among the world's ten largest IPOs.
• At the same time, former HKEX CEO Charles Li suspended the Micro Connect International Finance Chapter 21 listing and shifted it to a private fund model, underlining both the strength of Hong Kong's mainstream IPO market and the need to revisit niche listing frameworks.
• We’ll now examine how Hong Kong’s world-leading IPO fundraising and new tech-focused initiatives may shape HKEX’s existing investment narrative.

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Hong Kong Exchanges and Clearing Investment Narrative Recap

To own HKEX, you need to believe Hong Kong can stay a premier venue for global equity issuance and trading, even as competition from Mainland exchanges and other hubs intensifies. The latest IPO figures reinforce that the core listing franchise is intact, while the suspension of Micro Connect’s Chapter 21 listing looks immaterial to near term earnings, but it does highlight regulatory adaptability as a key short term catalyst and potential risk.

Against this backdrop, the cooperation MOU with Abu Dhabi Securities Exchange stands out, because it directly targets future listing and trading flows from new regions just as Hong Kong’s IPO pipeline is proving resilient. If these cross border initiatives deepen liquidity and product breadth, they could partially offset any future pressure from onshore Chinese markets competing for issuers and capital.

Yet, for all the optimism around new listings and market access, investors should also be aware of how exposed HKEX remains to shifting Mainland capital controls and...

Read the full narrative on Hong Kong Exchanges and Clearing (it's free!)

Hong Kong Exchanges and Clearing's narrative projects HK$30.5 billion revenue and HK$19.3 billion earnings by 2028. This implies 6.1% yearly revenue growth and an earnings increase of about HK$3.9 billion from HK$15.4 billion today.

Uncover how Hong Kong Exchanges and Clearing's forecasts yield a HK$504.75 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly HK$214 to HK$9,516.99 per share, so you are seeing very different expectations around HKEX’s future. Set that against the risk that stronger onshore Chinese exchanges could pull listings and liquidity away from Hong Kong, and it becomes even more important to compare multiple viewpoints before deciding how HKEX might fit into your portfolio.

Explore 7 other fair value estimates on Hong Kong Exchanges and Clearing - why the stock might be a potential multi-bagger!

Build Your Own Hong Kong Exchanges and Clearing Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Hong Kong Exchanges and Clearing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hong Kong Exchanges and Clearing's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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