Elevator Pitch
I maintain my "Neutral" rating on Hong Kong Exchanges and Clearing Limited (HKXCY) (HKXCF) [388:HK], or HKEX. The continued growth of the Stock Connect and efforts to expand in the FICC or Fixed Income, Currencies, And Commodities space represent key structural growth drivers for HKEX in the medium to long term.
However, there are near-term headwinds, with a bleak outlook for securities market ADT or Average Daily Turnover Value and fund raising activities like IPOs assuming the market stays in risk-off mode. Furthermore, HKEX's valuations are not particularly attractive, with its forward P/E