Goldman Sachs: Lowered HKEx (00388) target price by 1.7% to HK$523 to maintain “buy” rating

The Zhitong Finance App learned that Goldman Sachs released a research report stating that the target price on the Hong Kong Stock Exchange (00388) was lowered by 1.7% from HK$532 to HK$523, maintaining a “buy” rating. The bank lowered the HKEx's earnings forecast per share for the 2026-2029 fiscal year by 1% to 2%, mainly reflecting the recent slowdown in market activity. Goldman Sachs expects the company's third-quarter earnings per share to be HK$3.76, down 3% year over year, mainly due to lower average daily turnover and lower investment income.

The Hong Kong Stock Exchange will announce the third quarter results on November 6. Goldman Sachs pointed out that due to weak technology stocks and a 30% drop in southbound turnover, the average daily turnover fell 11% year over year to HK$254 billion. At the same time, the bank expects investment income to drop 23% month-on-month, mainly due to a reduction in the scale of margin financing.

Looking ahead, the bank believes that investors may be concerned about average daily turnover prospects, potential extended trading hours, and new gold market initiatives. Despite this, the bank pointed out that the IPO market is still strong, and 577 companies are currently going through listing procedures.