Lyon: Raising the target price of the Hong Kong Stock Exchange (00388) to HK$540 and expanding new asset classes is the key to revaluation

The Zhitong Finance App learned that Lyon released a research report saying that Hong Kong Stock Exchange (00388) has seen strong profit growth in the past eight quarters, but valuations have continued to be rampant, and the market focus is still focused on IPOs and southbound capital flows. However, the bank believes that the key to the next phase of the Hong Kong Stock Exchange's revaluation is not the IPO cycle, but whether it can expand the growth engine and reform the market microstructure, including expanding new asset classes such as crypto-related products and forecasting markets to enhance its strategic position as China's leading offshore market platform. In the long run, a more diversified product portfolio and more resilient profit performance are expected to structurally enhance the valuation of the Hong Kong Stock Exchange. The target price was raised from HK$530 to HK$540, maintaining the “outperforming the market” rating.