[ET Net News Agency, 3 January 2020] Morgan Stanley lifted its target price for HK
Exchanges & Clearing (HKEX)(00388) to HK$310 from HK$280 and maintained its "overweight"
rating.
The research house said 2019 was marked by strong markets and weak volumes. The year-end
listed market cap was HK$38 trillion, 16% higher than the 2019's average. The trading
velocity for the year declined to 66% (versus the long-term average of 80%).
Morgan believes this sets the stage for strong ADV (average daily turnover) in 2020
(current market cap much higher than the 2019's average and low trading velocity). A big
catalyst for velocity (apart from any strength in markets) could be more tech listings in
HK - tech stocks have higher velocity than other listed stocks in HK. (KL)