0237 GMT - Hong Kong Exchanges & Clearing may see slower trading activity next year, Roy Van Keulen, equity analyst at Morningstar, writes in a note. The current levels are significantly elevated, with 2Q marking the second-highest level of trading activity in the exchange's history, exceeded only by 1Q, the analyst says. Since the start of the year, the benchmark Hang Seng Index has outperformed the S&P 500 and Nasdaq 100 after several years of underperformance. However, any economic weakness or escalation of trade tensions with the U.S. would likely hurt listing and trading activity, the analyst says. Morningstar raised its fair value estimate by 5% to HK$340 after lifting its near-term growth forecasts, though shares appear significantly overvalued. Shares are 0.2% higher at HK$442.20. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

August 20, 2025 22:37 ET (02:37 GMT)

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