China and US Equity Analyst

Roger Xie

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US market.

HK Exchange (388): Beneficiary of HK Tech Crack Down

HKEx(388.HK): Expect Slower Q2 Trading Volume, HKEx to Benefit As Offshore Venue for China Listings

Hong Kong Exchanges & Clearing – Glitter Is Gone

HKEx(388.HK): New Economy and Stock Connect to Continue Lift Trading Activities

Gravity Works As WeWork Doesn't; Now Plan B

Equity Bottom-Up

<ul>
<li>In his second day on the job, <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> new chief executive Nicolas Aguzin expressed his confidence in Hong Kong's outlook as a continued gateway to China, and vowed to promote HKEx role in the connectivity. Although his carefully prepared speech did not outline more detail actions and strategic plan, investors still applauded his stance as new CEO and more diversified management at <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK), </a>the 2nd large exchange in Asia. </li>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> May ADT (Average Daily Turnover) continue to stay at high growth, delivering amazing 33% year-over-year growth in the month (but growth rate slowed from April). The outperformance is partially helped by the easy comparable from last year. For first 5 months of year 2021, HKEx ADT has delivered the year-over-year growth rate to 70%. IPO market remains robust. Total raised fund has reached HK$184 billion, almost 7x the IPO size in same period last year.</li>
<li>HKEx also disclosed its latest listing rule change for main board. The profitability requirement has been raised first time in 26 years, but is much lower than the original proposal.  We believe the original proposal has met with strong opposition from smaller companies and sponsors for listings. HKEx aims to improve listing companies quality and governance, which will be long term positive for HKEx. We remain bullish on <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a>  and have TP HKD 550. </li>
</ul>


In his second day on the job, HKEX (388 HK) new chief executive Nicolas Aguzin expressed his confidence in Hong Kong's outlook as a continued gateway to China, and vowed to promote HKEx role in the connectivity. Although his carefully prepared speech did not outline more detail actions and strategic plan, investors still applauded his stance as new CEO and more diversified management at HKEX (388 HK), the 2nd large exchange in Asia. 

HKEX (388 HK) May ADT (Average Daily Turnover) continue to stay at high growth, delivering amazing 33% year-over-year growth in the month (but growth rate slowed from April). The outperformance is partially helped by the easy comparable from last year. For first 5 months of year 2021, HKEx ADT has delivered the year-over-year growth rate to 70%. IPO market remains robust. Total raised fund has reached HK$184 billion, almost 7x the IPO size in same period last year.
HKEx also disclosed its latest listing rule change for main board. The profitability requirement has been raised first time in 26 years, but is much lower than the original proposal.  We believe the original proposal has met with strong opposition from smaller companies and sponsors for listings. HKEx aims to improve listing companies quality and governance, which will be long term positive for HKEx. We remain bullish on HKEX (388 HK)  and have TP HKD 550. 


HKEx(388.HK): A Key Exchange to Connect China and the World, New CEO Said