Hong Kong exchange operator's share surge to continue amid IPO wave, Morgan Stanley says
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Morgan Stanley raised its target price for HKEX to HK$500 from HK$440 on Sunday, citing the operator's strong year-to-date performance and higher investor confidence that the Chinese market is bottoming out.
HKEX has surged 41 per cent this year to close at HK$415.80 on Monday, as Morgan Stanley's vote of confidence added to recent upgrades by Goldman Sachs and HSBC. The former raised its price target to HK$455 on May 30, while the latter advanced it to HK$438 on June 1.
A 'shift from financial tightening to development' was expected to support Hong Kong's trading and IPO volumes amid 'loosening IPO requirements', equity analysts including Richard Xu said in a note.
Market sentiment had remained high since the debut of Chinese
artificial intelligence firm DeepSeek , which raised confidence in China's innovation-driven model, they added. In addition, credit risks from US tariffs should be 'very limited' and 'much lower' than initial estimates.
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