UBS published a report summarizing the key points of the Hong Kong Stock Exchange on Financial Enterprise Day. From the beginning of 2026 to November 9, the contribution of Southbound Capital to the overall average daily turnover fell 3 percentage points to 21.5% year on year, but the overall average daily turnover was still resilient, rising 2% year on year. The Hong Kong Stock Exchange mentioned that southbound participation was previously supported by the Internet, high dividends and the performance of new consumer stocks. In the future, mainland insurance companies are expected to become an incremental source of southbound capital; insurance companies have been allowed to invest in southbound ETFs since September, and participation is expected to gradually increase. In terms of IPOs, Hong Kong's IPO activity has slowed down in recent months after a strong first half of the year. Some listing applicants are re-evaluating the listing schedule due to weak markets and changes in valuation; however, the Hong Kong Stock Exchange extended the validity period of listing applications to 12 months, so issuers can delay issuance without having to submit applications repeatedly, which means that some pipeline projects may be delayed rather than withdrawn. If market conditions improve, there is a chance for IPO activity to recover significantly. The bank maintains a “neutral” rating on the Hong Kong Stock Exchange, with a target price of HK$420.

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