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Hong Kong Exchanges & Clearing
(OTC:HKXCY)
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Rating:82Outperform
Price Target:
$61.00
â–²(14.45% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and robust cash generation) and a positive earnings update showing record activity and strong growth. Technicals are supportive with the stock trading above key moving averages and positive MACD. Valuation is the main tempering factor due to a higher P/E, partly offset by the dividend yield.
Positive Factors
Diversified Multi-Asset Market Infrastructure
HKEX combines cash equities, derivatives, commodities, clearing and data services, reducing dependence on one market. Broad volume growth and record activity across asset classes support resilient fee generation over the medium term.
Negative Factors
Exposure to Market-Cycle Volatility
Trading, clearing and listing fees depend on turnover, volatility, open interest and IPO activity. Even with a strong franchise, weaker participation or capital-raising conditions could produce materially uneven revenue and cash-flow performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Multi-Asset Market Infrastructure
HKEX combines cash equities, derivatives, commodities, clearing and data services, reducing dependence on one market. Broad volume growth and record activity across asset classes support resilient fee generation over the medium term.
Read all positive factors
Hong Kong Exchanges & Clearing (HKXCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.34B
Dividend Yield3.52%
Average Volume (3M)102.74K
Price to Earnings (P/E)25.1
Beta (1Y)0.36
Revenue Growth22.70%
EPS Growth44.69%
CountryUS
Employees2,636
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)15.65
Shares Outstanding1,267,837,000
10 Day Avg. Volume32,717
30 Day Avg. Volume102,741
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)8.82
Price to Sales (P/S)17.61
P/FCF Ratio24.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.01
Revenue Forecast (FY)$4.10B
Hong Kong Exchanges & Clearing Business Overview & Revenue Model
Company Description
Hong Kong Exchanges and Clearing Limited (HKEX), through its various subsidiary companies, is a key global player in the financial markets. It is responsible for owning and managing stock and futures exchanges, alongside their associated clearing ...
How the Company Makes Money
HKEX primarily earns revenue by charging fees for using its markets and post-trade infrastructure, supplemented by market data and technology/connectivity income and investment income from funds held for clearing and settlement.
Key revenue strea...
Hong Kong Exchanges & Clearing Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial picture: record revenue, profit and trading volumes across cash, derivatives and commodities; robust IPO and follow-on fundraising; significant progress on FIC products (5-year CGB futures) and ETP growth. The primary negatives are lower net investment income (down 11% y/y; 21% lower excluding a one-off gain) due to higher margin rebates and lower rates, and increased operating expenses (OpEx +6% y/y; +9% ex nonrecurring items) as the group invests for future growth. Management framed these headwinds as known, manageable, and partly structural investments to support sustainable momentum. On balance, the strong breadth of record market activity, strategic product launches and healthy capital formation substantially outweigh the financial headwinds.Positive Updates
Record 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 H1 2025. Board declared first interim dividend of HKD 7.43 per share (representing 90% of profit attributable to shareholders, excluding HKEX Foundation).
Negative Updates
Decline in Net Investment Income
Total net investment income for H1 2026 was HKD 2.56 billion, down 11% y/y. Excluding a nonrecurring HKD 298 million valuation gain, net investment income was 21% lower vs H1 2025. Drivers include higher rebates payable to participants under revised margin rebate arrangements (effective Oct 2025) and lower investment returns amid a softer reinvestment interest-rate environment. Management expects H2 net investment income to remain affected.
Read all updates
Q2-2026 Updates
Positive
Negative
Record 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 H1 2025. Board declared first interim dividend of HKD 7.43 per share (representing 90% of profit attributable to shareholders, excluding HKEX Foundation).
Read all positive updates
Company Guidance
Management guided that HKEX will focus on disciplined execution to sustain momentum across a multi‑asset ecosystem while rolling out new FIC and commodity products, cross‑border connectivity and market infrastructure enhancements; they reported H1 revenue and other income of HKD 16.7 billion (+19% y/y), profit after tax HKD 10.6 billion and EPS HKD 8.36 (both +24% y/y), declared a first interim dividend of HKD 7.43 per share (90% payout), and highlighted headline ADT of HKD 283 billion (+18% y/y; Q2 record quarterly ADT HKD 289 billion) with Northbound ADT more than doubled, derivatives volumes +6% and commodities volumes +18% (LME chargeable ADV at a half‑year record); ETPs now represent 17% of headline ADT (vs ~5% in 2021), companies listed since 2025 contributed >8% of ADT, YTD IPO fundraising is USD 41 billion (FY2025: USD 37.5b) with >100 IPOs completed, follow‑on fundraising YTD USD 50 billion (FY2025: USD 66b), net investment income was HKD 2.56 billion (‑11% y/y; ‑21% ex HKD 298m one‑off gain) and is expected to remain affected in H2 by revised margin rebate arrangements and HKD rates, OpEx rose 6% (9% excl. nonrecurring items including a HKD 90m FCA fine in 2025 and a HKD 24m insurance claim in 2026), and near‑term operational milestones include the 5‑year CGB futures launched Aug 3, plans to accept CGB as collateral in clearing houses before year‑end, an FDR007 OTC contract and other tenor/product launches later this year.Hong Kong Exchanges & Clearing Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.79B | 29.11B | 17.35B | 20.39B | 18.27B | 20.75B |
| Gross Profit | 27.32B | 24.73B | 12.94B | 19.52B | 17.48B | 19.98B |
| EBITDA | 25.29B | 22.78B | 22.15B | 20.87B | 12.29B | 16.34B |
| Net Income | 19.80B | 17.72B | 13.05B | 11.86B | 10.08B | 12.54B |
Balance Sheet | ||||||
| Total Assets | 577.14B | 580.72B | 381.63B | 341.18B | 406.05B | 399.30B |
| Cash, Cash Equivalents and Short-Term Investments | 324.65B | 318.22B | 230.91B | 203.98B | 276.39B | 342.33B |
| Total Debt | 946.11M | 1.89B | 1.68B | 2.05B | 2.24B | 2.06B |
| Total Liabilities | 516.19B | 522.00B | 327.22B | 289.38B | 355.95B | 349.39B |
| Stockholders Equity | 60.66B | 58.14B | 53.85B | 51.34B | 49.73B | 49.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 20.93B | 11.17B | 10.11B | 13.67B | 11.27B |
| Operating Cash Flow | 0.00 | 22.66B | 12.77B | 11.50B | 14.96B | 12.34B |
| Investing Cash Flow | 0.00 | -7.73B | 3.19B | -6.29B | -1.70B | 2.28B |
| Financing Cash Flow | 0.00 | -14.56B | -11.26B | -11.25B | -10.37B | -12.67B |
Hong Kong Exchanges & Clearing Technical Analysis
Negative
53.30
Price Trends
50.66
Negative
50.41
Negative
50.83
Negative
Market Momentum
-0.01
Positive
40.28
Neutral
-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKXCY, the sentiment is Negative. The current price of 53.3 is above the 20-day moving average (MA) of 51.79, above the 50-day MA of 50.66, and above the 200-day MA of 50.83, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of -0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HKXCY.
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 | $63.34B | 25.09 | 34.73% | 3.52% | 22.70% | 44.69% | |
82 Outperform | $29.35B | 21.84 | 25.75% | 1.07% | 11.68% | 50.39% | |
82 Outperform | $99.08B | 23.25 | 15.53% | 4.10% | 5.10% | 14.78% | |
79 Outperform | $121.08B | 25.00 | 15.47% | 0.94% | 9.67% | 26.18% | |
77 Outperform | $50.97B | 26.28 | 16.31% | 1.27% | 7.35% | 31.93% | |
76 Outperform | $88.36B | 22.14 | 13.81% | 1.27% | 12.60% | 35.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HKXCY
Hong Kong Exchanges & Clearing
50.06
-5.91
-10.57%
CBOE
Cboe Global Markets
281.04
49.31
21.28%
CME
CME Group
275.54
26.38
10.59%
ICE
Intercontinental Exchange
157.40
-12.66
-7.44%
SPGI
S&P Global
410.71
-99.29
-19.47%
NDAQ
Nasdaq
91.19
-0.46
-0.50%
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.