0942 GMT - Hong Kong Exchanges & Clearing's higher trading activity will likely support its medium- to long-term earnings growth, Vanessa Lee of DBS Group Research writes in a note. Investors' increased confidence in AI in China will likely sustain the strong trading momentum, and Southbound capital is becoming a key driver of medium-term liquidity, Lee says. Continuing U.S.-China tensions may push U.S.-listed Chinese companies to seek dual-primary or secondary listings in Hong Kong, further boosting market liquidity, Lee adds. DBS raises its 2025 and 2026 earnings forecast for the exchange operator by 7% and 3%, respectively. DBS retains a buy rating on the stock but trims the target price to HK$430 from HK$440, given expectations of subdued risk appetite in the near term amid geopolitical tensions. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
May 05, 2025 05:42 ET (09:42 GMT)
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