Hong Kong Exchange Reports Record Profits and Revenue, Exceeding Market Expectations

Hong Kong Exchanges and Clearing Limited (HKEX) announced its annual results on Thursday, revealing record profits and revenue for the second consecutive year, surpassing market expectations. According to Ming Pao, following the announcement, several brokerage firms raised their target prices for HKEX. Citigroup and HSBC increased their target prices from HKD 505 and HKD 510 to HKD 525 and HKD 520, respectively, maintaining a 'buy' rating for the exchange. Additionally, CLSA significantly raised its target price by approximately 34% to HKD 500, reaffirming its 'outperform' rating. The report highlighted that despite an increase in HKEX's effective tax rate and a fine from the UK's Financial Conduct Authority last year, its revenue and profits still exceeded market forecasts.