<div id="readability-page-1"><div><p>HSBC Research issued a report noting that HKEX (00388.HK)<span> </span><span> +4.200 (+1.018%)  </span> <span> Short selling $56.18M; Ratio 9.464%  </span>  reported EPS of HKD4.10 for 1Q26, up 27.3% YoY, exceeding the brokers and market consensus forecasts by 14% and 13%, respectively. The report said HKEXs results were supported by strong average daily turnover (averaging HKD277 billion in the first quarter, up 14% YoY) and IPO listings (with first-quarter IPO fundraising reaching HKD110 billion). In addition, robust market data fees, net investment income and income related to the London Metal Exchange (LME) also underpinned performance, while operating expenses increased only 1.7% YoY, indicating tighter cost control compared with previous first-quarter trends.</p><p>The broker highlighted several upcoming catalysts that will benefit HKEX, including: (1) the long-term development of the fixed income and currency (FIC) ecosystem, with strong alignment of interests between regulators and HKEX, while the current low RMB interest rate environment and RMB appreciation dynamics are also supportive; (2) Financial Secretary Paul Chan said on April 21 that active IPO applications have reached about 500, and strong listing execution in the first quarter has helped ease concerns that regulatory tightening could slow momentum; (3) N America investors see increasing attractiveness in international equities, particularly as the Hong Kong and Mainland China markets offer structural opportunities at undemanding valuations; (4) HKEX will further expand its weekly stock options classes to a total of 33 by June 2026.</p><p>HSBC Research maintained a Buy rating on HKEX and raised its TP from HKD520 to HKD528. Following the results announcement, the broker lifted its earnings forecasts for 2026/27/28 by 5.0%, 2.4% and 1.7%, respectively, to reflect higher assumptions for average daily turnover, derivatives and LME volumes, listing fees and investment income. The broker believes HKEXs platform strength across asset classes, including FIC, will deliver long-term benefits, while sustained IPO momentum and higher trading activity will help maintain its strength in the cash equities market. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 12:25.)</p></div><p>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</p></div>

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<p>HSBC Research has raised its target price for HKEXfrom HKD520 to HKD528 following a strong 1Q26 performance, where EPS reached HKD4.10, up 27.3% YoY, surpassing market expectations. The report highlights robust average daily turnover and IPO fundraising, alongside effective cost control. Upcoming catalysts include the development of the fixed income ecosystem and increased attractiveness of international equities. HSBC maintains a Buy rating and has adjusted its earnings forecasts for 2026-2028 upwards to reflect improved market conditions.</p>

- HSBC Research reported that HKEX (00388.HK) achieved an EPS of HKD4.10 for 1Q26, exceeding market expectations and showing a 27.3% YoY increase.  
- The strong performance was driven by a robust daily turnover averaging HKD277 billion, successful IPO activities, and controlled operating expenses, with several catalysts anticipated to benefit HKEX's future growth.  
- HSBC maintained a Buy rating and increased its price target from HKD520 to HKD528, while also revising its earnings forecasts for 2026, 2027, and 2028 upward.

HSBC Research Raises HKEX TP to HKD528; 1Q26 Results Beat