[ET Net News Agency, 22 November 2017] Morgan Stanley lifted its target price for HK
Exchanges & Clearing (HKEX)(00388) to HK$270 from HK$190, and maintained its
"equal-weight" rating as valuation makes it tough to justify an "overweight".
The research house said market turnover has been increasing and has averaged HK$115bn in
November (HK$84bn yeat-to-date). Till now the increase was driven by increase in market
cap - but now velocity is picking up, aided by Stock Connect flows. This implies that
turnover could stay elevated unless markets correct sharply.
Morgan raised its ADV forecasts to HK$88bn for 2017, HK$104bn for 2018, and HK$112bn for
2019 from HK$80bn, HK$84bn, and HK$86bn, respectively. It projected a 35% CAGR in Stock
Connect flows for the next two years. (KL)