UBS has issued a research report highlighting the ongoing positive feedback loop between robust IPO activity and record trading volumes at Hong Kong Exchanges and Clearing Ltd (HKEX). Newly listed companies since the start of 2025 have already contributed to over 8% of the average daily turnover in the first half of the year, while secondary market liquidity continues to enhance Hong Kong's appeal as a fundraising hub.

Management is actively working to broaden the capital pool by expanding into exchange-traded products, derivatives, and index-linked offerings, alongside plans to streamline listing requirements and reduce costs for sustained issuers.

The bank has raised its target price for the exchange from HK$436 to HK$450, while reiterating a "neutral" rating. Taking into account market activity in the third quarter to date and updated views on the Federal Reserve's policy rate trajectory and Hong Kong dollar interbank rates, UBS has lifted its fiscal 2026 average daily turnover forecast for HKEX from HK$268 billion to HK$275 billion. Additionally, earnings per share estimates for fiscal 2026 through 2028 have been revised upward by 5%, 3%, and 4%, respectively, to HK$16.0, HK$13.8, and HK$14.6.