The Zhitong Finance App learned that UBS released a research report stating that it will maintain the “neutral” rating of the Hong Kong Stock Exchange (00388) and the target price of HK$420. The company's third-quarter revenue increased 1% year over year and fell 7% quarterly to HK$7.9 billion, lower than market expectations by 3%; net profit was HK$4.9 billion, down 1% year on year, down 10% from quarter to quarter, and 3% lower than market expectations. The bank fine-tuned the HKEx earnings forecast for 2026 to 2028 to HK$15.4, HK$13.1 and HK$13.5.
UBS pointed out that IPO activity in Hong Kong has recently slowed, and the amount raised in October was only HK$16 billion, reflecting weakening market sentiment. However, the Hong Kong Stock Exchange is speeding up measures to improve the market.
The report mentioned that the Nasdaq Exchange plans to launch an overnight trading session from 9 p.m. to 4 a.m. EST starting December 6, to achieve 23 hours of trading every day, five days a week. UBS pointed out that the market has mixed opinions on this. Some investors believe that this move may increase the convenience for investors in the Asia-Pacific region to participate in US stock trading and put potential pressure on Hong Kong; however, there are also opinions that the current post-market and overnight trading of US stocks already provides reasonable channels, and the related impact is limited.
Furthermore, the Hong Kong Stock Exchange plans to change the spot stock market to T+1 settlement in the second half of 2028, and Southbound Connect will follow suit simultaneously to reduce settlement risks, improve capital efficiency, and be in line with the global trend of accelerated settlement. In terms of derivatives, the Hong Kong Stock Exchange plans to extend night market trading to 4:15 a.m. in March 2027, and may further extend it to 5:15 a.m. in November 2027 to improve investors' risk management ability to respond to global market events.