[ET Net News Agency, 21 March 2018] Goldman Sachs trimmed its target price for Hong
Kong Exchanges (HKEx)(00388) to HK$310 from HK$350, and reiterated its "buy" rating.
The research house believes the share price strength has been driven by improved market
activity and investor expectations that listing reforms will lead to a transformation of
the HK listing pipeline.
However, activity momentum has weakened in March, and recent news reports have held that
China's policymakers might encourage China champions to list onshore. Goldman lowered its
FY2018-22 EPS forecasts by 2% to 8% to reflect the recent activity weakness.
Goldman continues to believe that the listing rule changes will make HK a more active
listing and hence an activity destination over the medium term. Hence, it is constructive
over the medium term on HKEx. The listing reforms on top of China Connect initiatives
could drive abnormally high earnings growth for HKEx over the next three to five years.
(KL)