<Daily Summary> HSI Ends at 25,468, Gaining 233 Points; HSTI Finishes at 5,457, Up 55 Points; CHINA LIFE Surges Over 4%; Market Trading Volume Increases
Market Performance: The Hang Seng Index (HSI) rose by 233 points (0.9%) to close at 25,468, with significant gains also seen in the HSTI and HSCEI, which increased by 55 points (1.0%) and 85 points (1.0%) respectively, and market turnover reached $183.14 billion.
Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, Alibaba, and Xiaomi saw positive movements, with Meituan closing up 1.8% at $101.3 and Tencent up 1.4% at $605, amidst notable short selling activity.
HSI & HSCEI Constituents on Move: China Life and Li Ning experienced substantial gains, with China Life rising 4.3% to $28.56 and Li Ning also up 4.3% to $19.07, reflecting strong investor interest.
Notable Stock Surge: Transthera-B saw a remarkable increase of 17.4%, closing at $171.3, indicating a significant upward trend in its stock performance.
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Analyst Views on 00388
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CICC: HKEX Performance Exceeds Expectations; Maintains Outperform Rating
HKEX Revenue and Profit Growth: CICC reported that HKEX's total revenue for 2025 is projected to reach HKD29.16 billion, a 30% increase year-on-year, with profits expected to grow 36% to HKD17.75 billion.
Quarterly Performance: In the fourth quarter, HKEX's revenue rose 15% year-on-year to HKD7.31 billion, with core fee income increasing by 17% to HKD6 billion and profits climbing 15% to HKD4.335 billion.
BofAS: HKEX (00388.HK) 2025 Net Profit Expected to Align Closely
Financial Performance: HKEX reported a net profit of HKD17.8 billion for FY25, a 36% year-on-year increase, with an average daily turnover (ADT) reaching a historical high of HKD250 billion, up 89% YoY.
IPO Fundraising and Future Outlook: The exchange's IPO fundraising surged to HKD287 billion, a 225% increase YoY, leading to revised earnings expectations for 2026-27, with a maintained target price of HKD520 and a Buy rating.
JPM: HKEX (00388.HK) Reports Strong 4Q25 Net Profit; Year-to-Date Average Daily Turnover Recovers; IPO Activity Increases
Financial Performance: HKEX reported a net profit of $4.3 billion for Q4 2025, a 12% decrease QoQ but a 15% increase YoY, surpassing JPMorgan's forecast by 19%. The FY2025 profit reached $17.8 billion, up 36% YoY, exceeding market expectations by 2%.
Trading Activity: After a seasonal dip in December 2025, trading volumes have improved, with an average daily turnover of approximately $260 billion year-to-date, despite the impact of the Lunar New Year period.
IPO Applications: HKEX entered 2026 with over 400 active IPO applications, a notable rise from 297 in Q3 2025, indicating a robust pipeline for new listings.
Market Outlook: Morgan Stanley maintained an Overweight rating on HKEX, projecting a target price of $540, anticipating continued strength in the share price following the positive quarterly results.
UBS Reports HKEX (00388.HK) Exceeds 4Q25 Expectations, but Lowers Target Price to HKD462
HKEX Financial Performance: UBS reported that HKEX's 4Q25 results exceeded expectations, with a 15% YoY revenue growth to HKD7.3 billion, driven by stronger net interest income and fees.
Profit and Cost Control: HKEX's net profit also rose 15% YoY to HKD4.3 billion, surpassing consensus estimates, attributed to effective cost management.
Future Outlook: HKEX plans to invest in growth while maintaining cost discipline, although it anticipates a tougher comparison in 1Q26.
EPS and Target Price Adjustments: UBS adjusted its EPS forecasts for HKEX for 2026, 2027, and 2028, and revised the target price from HKD471 to HKD462, maintaining a Neutral rating.
G Sachs: HKEX (00388.HK) Exceeds Expectations with 4Q25 Earnings; Maintains Buy Rating
Earnings Performance: HKEX's 4Q25 earnings exceeded expectations due to improved investment returns and reduced operating expenses, with earnings 5% above Goldman Sachs' forecast when excluding investment income.
Analyst Ratings: Goldman Sachs maintains a "Buy" rating on HKEX, projecting a 4% EPS growth for 2026 and a 12% year-over-year revenue increase, while setting a target price of HKD 546.
M Stanley: HKEX (00388.HK) Exceeds Quarterly Expectations; Target Price Set at $508
Financial Performance: HKEX reported a 15% year-over-year increase in net profit for 4Q25, surpassing market expectations and driven by higher net investment income and listing fees.
Trading Activity: The average daily turnover rose by 23% year-over-year to $230 billion, leading to increased trading and clearing fees.
Analyst Rating: Morgan Stanley has rated HKEX as Overweight, with a target price set at $508, reflecting confidence in the company's performance.
Dividends: HKEX announced a 36% year-over-year increase in net profit for 2025, raising the second interim dividend per share to $6.52.
CICC: HKEX Performance Exceeds Expectations; Maintains Outperform Rating
HKEX Revenue and Profit Growth: CICC reported that HKEX's total revenue for 2025 is projected to reach HKD29.16 billion, a 30% increase year-on-year, with profits expected to grow 36% to HKD17.75 billion.
Quarterly Performance: In the fourth quarter, HKEX's revenue rose 15% year-on-year to HKD7.31 billion, with core fee income increasing by 17% to HKD6 billion and profits climbing 15% to HKD4.335 billion.
BofAS: HKEX (00388.HK) 2025 Net Profit Expected to Align Closely
Financial Performance: HKEX reported a net profit of HKD17.8 billion for FY25, a 36% year-on-year increase, with an average daily turnover (ADT) reaching a historical high of HKD250 billion, up 89% YoY.
IPO Fundraising and Future Outlook: The exchange's IPO fundraising surged to HKD287 billion, a 225% increase YoY, leading to revised earnings expectations for 2026-27, with a maintained target price of HKD520 and a Buy rating.
JPM: HKEX (00388.HK) Reports Strong 4Q25 Net Profit; Year-to-Date Average Daily Turnover Recovers; IPO Activity Increases
Financial Performance: HKEX reported a net profit of $4.3 billion for Q4 2025, a 12% decrease QoQ but a 15% increase YoY, surpassing JPMorgan's forecast by 19%. The FY2025 profit reached $17.8 billion, up 36% YoY, exceeding market expectations by 2%.
Trading Activity: After a seasonal dip in December 2025, trading volumes have improved, with an average daily turnover of approximately $260 billion year-to-date, despite the impact of the Lunar New Year period.
IPO Applications: HKEX entered 2026 with over 400 active IPO applications, a notable rise from 297 in Q3 2025, indicating a robust pipeline for new listings.
Market Outlook: Morgan Stanley maintained an Overweight rating on HKEX, projecting a target price of $540, anticipating continued strength in the share price following the positive quarterly results.
UBS Reports HKEX (00388.HK) Exceeds 4Q25 Expectations, but Lowers Target Price to HKD462
HKEX Financial Performance: UBS reported that HKEX's 4Q25 results exceeded expectations, with a 15% YoY revenue growth to HKD7.3 billion, driven by stronger net interest income and fees.
Profit and Cost Control: HKEX's net profit also rose 15% YoY to HKD4.3 billion, surpassing consensus estimates, attributed to effective cost management.
Future Outlook: HKEX plans to invest in growth while maintaining cost discipline, although it anticipates a tougher comparison in 1Q26.
EPS and Target Price Adjustments: UBS adjusted its EPS forecasts for HKEX for 2026, 2027, and 2028, and revised the target price from HKD471 to HKD462, maintaining a Neutral rating.
G Sachs: HKEX (00388.HK) Exceeds Expectations with 4Q25 Earnings; Maintains Buy Rating
Earnings Performance: HKEX's 4Q25 earnings exceeded expectations due to improved investment returns and reduced operating expenses, with earnings 5% above Goldman Sachs' forecast when excluding investment income.
Analyst Ratings: Goldman Sachs maintains a "Buy" rating on HKEX, projecting a 4% EPS growth for 2026 and a 12% year-over-year revenue increase, while setting a target price of HKD 546.
M Stanley: HKEX (00388.HK) Exceeds Quarterly Expectations; Target Price Set at $508
Financial Performance: HKEX reported a 15% year-over-year increase in net profit for 4Q25, surpassing market expectations and driven by higher net investment income and listing fees.
Trading Activity: The average daily turnover rose by 23% year-over-year to $230 billion, leading to increased trading and clearing fees.
Analyst Rating: Morgan Stanley has rated HKEX as Overweight, with a target price set at $508, reflecting confidence in the company's performance.
Dividends: HKEX announced a 36% year-over-year increase in net profit for 2025, raising the second interim dividend per share to $6.52.
