HKEx released on Wednesday, brokerages estimated to earn 9.2 billion new high
HKEx (00388) announced its performance last year on Wednesday (27th). Thanks to the high turnover of Hong Kong stocks trading and the annual turnover of derivatives in the beginning of last year, brokerages expect the Hong Kong Stock Exchange to have a high level of earnings, with an average forecast of 9.24 billion yuan. This is equivalent to a 25% year-on-year increase.
Keeping a close eye on the A-shares
HKEx’s performance is relatively transparent, and the market is more concerned about the results of MSCI’s E-shares consultation on Thursday (28th) and the new three-year strategic plan of the Hong Kong Stock Exchange, which has become the key to the stock price.
According to the analysis of comprehensive brokerages, the average daily turnover in the fourth quarter of last year was about 85 billion yuan, 7% less than the quarter, and the listing activity also decreased slightly. The profit in the single quarter or the quarterly decline was about 20% to about 2 billion yuan, but it did not hinder the whole year. Earnings exceeded the record of the “Hong Kong stock era” in 2015.
The stock price of the Hong Kong Stock Exchange has repeatedly hit a new high of more than half a year. Except for the average daily turnover of the beneficiary, which is close to 100 billion, it is also unrelated to MSCI to decide whether to increase the A-share factor by 3 to 20%. For the most optimistic market, Morgan Stanley estimates that A shares “three times in the market" or one year attracted up to $125 billion in foreign capital inflows, 1.8 times more than last year’s $45 billion; Moto and Nomura are expected to have 99.5 billion and The inflow of 51 billion US dollars pushed up the Shanghai and Shenzhen stock exchanges.
Both Morgan Stanley and Morton reported in the recent report that the income model of the Hong Kong Stock Exchange is changing. The turnover of derivative contracts such as futures options has grown steadily. The average annual growth rate in the past four years has increased by about 20%, accounting for 17% of the Group’s revenue. The launch of the international index into the A-share and RMB fixed-rate interest rate products is expected to continue to drive growth, which will make the follow-up performance stable.
New strategic planning
In addition to the MSCI decision, the HKEx also issued a strategic plan after the performance. In addition to focusing on the development of interconnection, the market also paid attention to the planning of international new shares and technology investment by the Hong Kong Stock Exchange. In fact, the HKEx has recently accelerated its actions, including the acquisition of Shenzhen Financial Technology Service Provider “Fuhui Huitong”, and also invited former HSBC Chief Executive Officer Ou Zhihua and Ali Vice Chairman Cai Chongxin to join the newly established International Advisory Committee.