Morgan Stanley has released a research report raising its price target for HKEX (00388) by 4.5%, from HK$515 to HK$538, while maintaining an "Overweight" rating. The investment bank anticipates a more sustained upward cycle for the Hong Kong capital market, driven primarily by positive momentum in China's capital development cycle. Over the medium to long term, newly issued equities, rather than cash equities, are expected to serve as the primary growth catalyst.

Morgan Stanley projects HKEX's overall average daily turnover (ADV) to reach HK$268 billion in 2026, HK$285 billion in 2027, and HK$300 billion in 2028. These forecasts reflect the strong year-to-date performance, an expected acceleration in trading velocity, and the maintenance of capital market activity at a consistent level. Concurrently, the firm has raised its forecasts for HKEX's trading fees and clearing charges, and has increased its earnings per share (EPS) projections for 2026, 2027, and 2028 by 10.0%, 9.3%, and 9.1%, respectively.