Goldman Sachs has reaffirmed its buy rating on Hong Kong Exchanges and Clearing (HKEX), pointing to renewed policy backing from Beijing and a surge in artificial intelligence-related listings as key drivers for the exchange operator.
The Wall Street bank’s note comes as HKEX shares have underperformed the broader market, declining approximately 5% year-to-date, roughly in line with the Hang Seng Index.
Goldman argues that the current valuation does not fully reflect the potential upside from increased market activity and strategic government support for the capital markets.
Beijing has recently intensified efforts to bolster investor confidence and liquidity in Chinese and Hong Kong equities.
These policy measures aim to stabilize the market and encourage domestic and foreign capital inflows.
The bank highlights that the regulatory environment is becoming more favorable for issuers, particularly in the technology sector.