Want to see HK:0388 full AI Analyst Report?
Top Page
Hong Kong Exchanges & Clearing
(0388)
Select Model
Select Model
Rating:82Outperform
Price Target:
HK$426.00
â–˛(0.47% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by very strong underlying financial performance (high profitability, low leverage, strong cash conversion) and a supportive earnings update showing record H1 results and broad momentum across key market activity lines. Technicals are constructive with the stock trading above major moving averages. Valuation is the main restraint due to a higher P/E, only partly offset by the dividend yield.
Positive Factors
Exceptional profitability
HKEX’s consistently high margins indicate a powerful exchange and post-trade infrastructure model with substantial operating leverage. This profitability supports reinvestment in technology and products while providing resilience through normal changes in market activity over the next several quarters.
Negative Factors
Cyclical revenue pattern
HKEX remains exposed to fluctuations in trading turnover, derivatives activity and IPO markets, as shown by prior revenue declines before the latest rebound. This cyclicality can produce uneven earnings and cash-flow progression even when the underlying infrastructure franchise remains strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability
HKEX’s consistently high margins indicate a powerful exchange and post-trade infrastructure model with substantial operating leverage. This profitability supports reinvestment in technology and products while providing resilience through normal changes in market activity over the next several quarters.
Read all positive factors
Hong Kong Exchanges & Clearing (0388) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$464.92B
Dividend Yield3.8%
Average Volume (3M)2.88M
Price to Earnings (P/E)23.5
Beta (1Y)1.02
Revenue Growth23.07%
EPS Growth45.16%
CountryHK
Employees2,636
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)15.65
Shares Outstanding1,267,836,900
10 Day Avg. Volume2,871,645
30 Day Avg. Volume2,880,382
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)8.86
Price to Sales (P/S)17.67
P/FCF Ratio24.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$525.56Price Target Upside23.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)15.65
Revenue Forecast (FY)HK$31.97B
Hong Kong Exchanges & Clearing Business Overview & Revenue Model
Company Description
Hong Kong Exchanges and Clearing Limited (HKEX), a leading financial infrastructure group, oversees and operates significant stock and futures exchanges and their associated clearing houses across Hong Kong, mainland China, and the United Kingdom....
How the Company Makes Money
HKEX primarily makes money by charging fees for operating markets and providing post-trade infrastructure. Key revenue streams generally include: (1) Trading and transaction fees: charges linked to the value and/or volume of trades executed on HKE...
Hong Kong Exchanges & Clearing Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial half, with multiple record highs across revenue, profit, trading volumes and product activity (equities, derivatives, commodities, ETPs and IPO fundraising). Strategic progress is evident—new FIC products (5-year CGB futures), expanding index initiatives and infrastructure readiness support future diversification. Headwinds are present but manageable: net investment income declined (–11% YoY; –21% excl. nonrecurring items) due to margin rebate changes and lower rates, operating costs are rising as investments continue, and several initiatives remain subject to regulatory approval. Overall, the positive operational momentum and sizeable uplift in core revenue and profit materially outweigh the downside items, which are largely nonrecurring, structural investments or execution/timing risks.Positive Updates
Record Half-Year Revenue and Profit
Group revenue and other income of HKD 16.7 billion, up 19% year-on-year; profit after tax HKD 10.6 billion and EPS HKD 8.36, both up 24% versus prior year; Board declared first interim dividend of HKD 7.43 per share (90% of profit attributable to shareholders, excl. HKEX Foundation).
Negative Updates
Decline in Net Investment Income
Total net investment income HKD 2.56 billion, down 11% YoY; excluding a HKD 298 million nonrecurring valuation gain, net investment income was 21% lower YoY—primarily due to higher rebates payable to participants under revised margin rebate arrangements and lower reinvestment returns in a softer interest-rate environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Half-Year Revenue and Profit
Group revenue and other income of HKD 16.7 billion, up 19% year-on-year; profit after tax HKD 10.6 billion and EPS HKD 8.36, both up 24% versus prior year; Board declared first interim dividend of HKD 7.43 per share (90% of profit attributable to shareholders, excl. HKEX Foundation).
Read all positive updates
Company Guidance
Management's guidance emphasized sustaining momentum and disciplined execution to build a multi‑asset ecosystem after a record H1 — H1 revenue and other income were HKD 16.7bn (+19% YoY), profit after tax HKD 10.6bn (+24%), EPS HKD 8.36 (+24%) and a first interim dividend of HKD 7.43/share (90% payout ex‑Foundation); headline ADT was HKD 283bn (+18% YoY) with Q2 a record HKD 289bn, Northbound ADT more than doubled YoY, derivatives volumes +6%, commodities volumes +18% (LME chargeable ADV a record half‑year high), ETPs contributed 17% of ADT (vs ~5% in 2021), companies listed since 2025 contributed >8% of headline ADT, IPO fundraising YTD USD 41bn (vs USD 37.5bn FY2025) and follow‑on fundraising YTD USD 50bn (vs USD 66bn FY2025); they warned H2 net investment income will likely remain affected by the revised margin rebate arrangements, fluctuating margin fund size and HKD interest rates after H1 net investment income of HKD 2.56bn (‑11% YoY; ‑21% ex a HKD 298m unlisted gain), and outlined near‑term execution plans — 5‑year CGB futures launched Aug 3 with more tenors expected, clearing houses to accept CGB as collateral before year‑end, planned FDR007 OTC contracts later this year (subject to approval), extensions to derivatives after‑hours toward the U.S. close and further Connect and product enhancements to drive growth.Hong Kong Exchanges & Clearing Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.79B | 29.16B | 17.35B | 15.45B | 16.93B | 19.47B |
| Gross Profit | 27.32B | 24.77B | 12.94B | 11.46B | 13.30B | 16.18B |
| EBITDA | 25.29B | 22.82B | 22.15B | 20.87B | 15.48B | 16.34B |
| Net Income | 19.80B | 17.75B | 13.05B | 11.86B | 10.08B | 12.54B |
Balance Sheet | ||||||
| Total Assets | 577.08B | 580.77B | 381.63B | 341.18B | 406.05B | 399.30B |
| Cash, Cash Equivalents and Short-Term Investments | 324.61B | 318.26B | 230.91B | 224.70B | 276.39B | 342.33B |
| Total Debt | 946.00M | 1.89B | 1.75B | 1.60B | 2.24B | 2.48B |
| Total Liabilities | 516.13B | 522.05B | 327.22B | 289.38B | 355.95B | 349.39B |
| Stockholders Equity | 60.66B | 58.15B | 53.85B | 51.34B | 49.73B | 49.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 20.96B | 11.17B | 10.11B | 13.67B | 11.27B |
| Operating Cash Flow | 0.00 | 22.70B | 12.77B | 11.50B | 14.96B | 12.34B |
| Investing Cash Flow | 0.00 | -7.74B | 3.19B | -6.29B | -1.70B | 2.28B |
| Financing Cash Flow | 0.00 | -14.59B | -11.26B | -11.25B | -10.37B | -12.67B |
Hong Kong Exchanges & Clearing Technical Analysis
Negative
424.00
Price Trends
390.37
Negative
387.31
Negative
395.26
Negative
Market Momentum
-6.44
Positive
32.93
Neutral
11.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0388, the sentiment is Negative. The current price of 424 is above the 20-day moving average (MA) of 374.00, above the 50-day MA of 390.37, and above the 200-day MA of 395.26, indicating a bearish trend. The MACD of -6.44 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 11.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0388.
Hong Kong Exchanges & Clearing Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$464.92B | 23.48 | 34.73% | 3.80% | 23.07% | 45.16% | |
73 Outperform | HK$307.29B | 8.30 | 10.01% | 5.73% | 37.61% | -2.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | HK$170.74B | 7.55 | 10.67% | 4.54% | 123.03% | 20.90% | |
63 Neutral | HK$222.36B | 9.73 | 11.77% | 2.14% | 20.32% | 82.47% | |
61 Neutral | HK$417.31B | 9.88 | 12.77% | 3.97% | 101.98% | 67.41% | |
57 Neutral | HK$178.12B | 13.40 | 14.85% | 3.71% | 5.66% | 47.31% |
* Financial Sector Average
HK:0388
Hong Kong Exchanges & Clearing
367.40
-42.28
-10.32%
HK:6030
CITIC Securities Co
19.88
-8.83
-30.76%
HK:3908
China International Capital
16.97
-3.80
-18.29%
HK:6886
Huatai Securities Co
14.72
-4.06
-21.63%
HK:6066
CSC Financial Co., Ltd. Class H
10.29
-2.46
-19.32%
HK:2611
Guotai Junan Securities Co., Ltd. Class H
13.02
-1.11
-7.82%
Hong Kong Exchanges & Clearing Corporate Events
HKEX Calls Hybrid General Meeting to Adopt New Articles Ahead of Uncertificated Securities Regime
Oct 15, 2026
Hong Kong Exchanges and Clearing Limited has called a hybrid general meeting for 6 November 2026, allowing shareholders to participate either in person at HKEX Connect Hall in Central or online via a dedicated platform. The company has set out pro...
HKEX Moves to Update Articles for Uncertificated Securities Regime
Oct 8, 2026
Hong Kong Exchanges and Clearing plans to adopt a new Articles of Association to align its governance framework with Hong Kong’s forthcoming uncertificated securities market regime. The changes are designed to ensure its shares can become pa...
HKEX Sets November Board Meeting to Approve Nine-Month Results
Sep 18, 2026
Hong Kong Exchanges and Clearing Limited has scheduled a board meeting for 6 November 2026 to consider, among other matters, the approval of the announcement of its unaudited consolidated results for the nine months ended 30 September 2026. The di...
HKEX Forfeits HK$19.9 Million in Unclaimed 2020 Interim Dividends
Sep 15, 2026
Hong Kong Exchanges and Clearing Limited has announced that its first interim dividend for 2020, set at HK$3.71 per share and originally payable on 15 September 2020, has been forfeited for shareholders who left it unclaimed by 15 September 2026 u...
HKEX Faces Fresh U.K. Competition Claim Over LME Nickel Trade Turmoil
Sep 8, 2026
Hong Kong Exchanges and Clearing has disclosed that it and its subsidiary, the London Metal Exchange, face a new legal challenge from Elliott Associates and Elliott International, filed in the U.K. Competition Appeal Tribunal over nickel trades ca...
HKEX Half-Year Profit Jumps on Broad-Based Fee Growth
Aug 19, 2026
HKEX reported strong unaudited results for the six months ended 30 June 2026, with total revenue and other income rising to HK$16.7 billion from HK$14.1 billion a year earlier. Growth was broad-based across trading, clearing, listing and depositor...
HKEX Posts Record Interim Results and Accelerates Market Reforms
Aug 19, 2026
HKEX reported record interim results for the first half of 2026, with revenue and profit surpassing the previous half-yearly highs amid strong market sentiment and robust fundraising by technology and AI-related companies. Trading across cash, der...
HKEX Declares Interim Dividend of HKD 7.43 Per Share for 2026
Aug 19, 2026
Hong Kong Exchanges and Clearing Limited has declared an interim ordinary cash dividend of HKD 7.43 per share for the financial year ending 31 December 2026, based on the reporting period to 30 June 2026. The dividend, payable in Hong Kong dollars...
HKEX Renews Chief Executive Bonnie Chan’s Contract for Three Years
Aug 17, 2026
Hong Kong Exchanges and Clearing Limited has renewed the employment contract of its Chief Executive, Ms Bonnie Chan, for a further three-year term from 1 March 2027 to 28 February 2030, reinforcing leadership continuity at the operator of Hong Kon...
HKEX Sets Forfeiture Deadline for Unclaimed 2020 Interim Dividend
Jul 31, 2026
Hong Kong Exchanges and Clearing Limited (HKEX), the operator of Hong Kong’s securities and derivatives markets and related clearing infrastructure, underpins key capital-market functions for regional and international investors. It is liste...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.