Goldman Sachs released a research report stating that Hong Kong Exchanges and Clearing Limited's (HKEX) share price has remained flat since the beginning of the year, underperforming the Hang Seng Index. The firm believes this reflects investor concerns over the pace of new listings following the Securities and Futures Commission's remarks on declining quality in listing documents, as well as worries about valuation due to modest profit growth prospects for the 2026 fiscal year, considering the relatively high base for average daily turnover and declining investment returns. Goldman Sachs maintained its "Buy" rating on HKEX, with an unchanged target price of HK$546.

However, the firm remains encouraged as the pace of listings has continued to be rapid since February, and newly listed companies in 2026 have shown strong share price performance, averaging a 64% increase. In terms of valuation, some of the headwinds to earnings stem from expected reductions in investment returns due to declining interest rates. The firm estimates that, excluding investment returns, HKEX's earnings will grow 12% annually from fiscal year 2025 to 2027, with a price-to-earnings growth ratio of 2.9 times, broadly in line with regional peers. HKEX is scheduled to announce its fourth-quarter results for fiscal year 2025 next Thursday (the 26th). The firm expects fourth-quarter net profit to be HK$3.9 billion, 1% higher than its previous forecast and a 2% year-on-year increase. Earnings excluding investment returns are projected to rise 14% year-on-year to HK$2.9 billion.