Equity Analysis /
Hong Kong

HK : Hong Kong Exchange - Sustainable growth in ADT to support a rerating

    19 January 2021
    Published byCGS-CIMB

    We expect to see sustainable growth in average daily turnover (ADT) of the HK market, not just short-term fund inflow to stocks affected by the US sanctions. The large performance gap between the HK and A-share markets will continue to support fund inflow. To tame Rmb appreciation, we expect to see more measures to encourage overseas investment, which will provide steady fund inflow to the HK market. We raised our 2021F/2022F ADT by 26.6%/31.4% to HK$190bn/HK$230bn to reflect the favourable structural trend. FY21F/22F EPS is lifted by 16.8%/20%. We reiterate our ADD rating with a new TP of HK$579.2.