---
title: "Understanding the Market | HKEX plunges 15%, HSBC says daily trading volume of Hong Kong stocks sharply rising may be temporary, limited upside for HKEX"
description: "Hong Kong Exchanges and Clearing Limited plummeted 15% in early trading. As of the time of publication, it fell by 13.31% to HKD 341.4, with a turnover of HKD 78.47 billion. HSBC Global Research issue"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/216143238.md"
published_at: "2024-10-08T02:44:03.000Z"
---

# Understanding the Market | HKEX plunges 15%, HSBC says daily trading volume of Hong Kong stocks sharply rising may be temporary, limited upside for HKEX

> Hong Kong Exchanges and Clearing Limited plummeted 15% in early trading. As of the time of publication, it fell by 13.31% to HKD 341.4, with a turnover of HKD 78.47 billion. HSBC Global Research issued a research report stating that the surge in Average Daily Trading (ADT) volume during the National Day holiday is only temporary as mainland investors were unable to invest in A-shares. Furthermore, expectations for Hong Kong stocks have also increased. The current market price of HKEX already reflects a daily trading volume between HKD 155 billion and 170 billion from the fourth quarter of 2024 to 2026, an increase of 37-50% compared to the first 9 months of 2024. The bank also did not see clear evidence that structural issues in the industry have been resolved. HSBC stated that the average daily trading volume (ADT) for 2024, 2025, and 2026 is expected to be raised to HKD 121 billion, 160 billion, and 170 billion respectively, with profit forecasts also increased by 5.4%, 16.9%, and 18.1%. The target price has been raised by 26% from HKD 300 to HKD 378. The rating has been downgraded to "Hold" as the bank believes that there is limited room for further stock price increase

According to the information from the iFeng Finance app, Hong Kong Exchanges and Clearing Limited (00388) plummeted 15% in the morning session, with a 13.31% drop as of the time of publication, trading at HKD 341.4 with a turnover of HKD 7.847 billion.

HSBC Global Research issued a research report pointing out that the surge in Average Daily Turnover (ADT) is only temporary due to mainland investors being unable to invest in A-shares during the National Day holiday. Additionally, expectations for Hong Kong stocks have also increased. The current market price of HKEX already reflects a daily turnover ranging between HKD 155 billion and 170 billion from the fourth quarter of 2024 to 2026, an increase of 37-50% compared to the first 9 months of 2024. The bank has not seen clear evidence indicating that structural issues in the industry have been resolved.

HSBC stated that the average daily turnover (ADT) for 2024, 2025, and 2026 is expected to be raised to HKD 121 billion, 160 billion, and 170 billion respectively, with profit forecasts also being adjusted by 5.4%, 16.9%, and 18.1%. The target price has been raised by 26% to HKD 378 from HKD 300. The rating has been downgraded to "Hold" as the bank believes there is limited room for further stock price increase

### Related Stocks

- [HKXCY.US - Hong Kong Exchanges and Clearing (HKEX)](https://longbridge.com/en/quote/HKXCY.US.md)
- [80388.HK - HKEX-R](https://longbridge.com/en/quote/80388.HK.md)
- [00388.HK - HKEX](https://longbridge.com/en/quote/00388.HK.md)

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|-------|-------------|-----|
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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.