According to a report published by Citibank, the profit due to shareholders of the Hong Kong Stock Exchange in the second quarter was HK$5.4 billion, up 4% month-on-month and 21% year-on-year, 13% and 7% higher than market and bank expectations, respectively. Core revenue increased 5% month-on-month and 31% year-on-year, 8% higher than market expectations, benefiting from strong equity securities transactions. Investment income of HK$1.3 billion was flat, down 17% year on year, 23% higher than market expectations. However, after deducting income from unlisted equity investments of HK$290 million during the period, investment income was 5% lower than market expectations. The interim dividend was HK$7.43 per share, maintaining a payout ratio of approximately 89%. Citi believes that steady performance will help boost market sentiment about the stock. The target price is HK$495, and the rating is “buy.”

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