Market Update | Hong Kong Stock Exchange rises by 4%, there are reports that it is discussing lowering the trading threshold for High Stock Price Stocks, Institutions claim valuations are still at a low level.

$HKEX (00388.HK)$ In the morning, it rose nearly 4%. As of the report, it is priced at 368 Hong Kong dollars, with a transaction volume of 3.211 billion Hong Kong dollars.

In terms of news, according to the Securities Times, there have been reports that HKEX is exploring a plan to lower the threshold for investors to purchase some High Stock Price stocks in Hong Kong to stimulate Trading. In recent weeks, at closed meetings between HKEX and the brokerage Industry, HKEX officials proposed a plan to simplify the minimum trading unit (the number of shares per lot) for each stock. In response, an HKEX spokesperson told reporters that initial research is being conducted.

China Securities Co.,Ltd. pointed out that the proportion of trading-related business at HKEX is high, with ADT being the anchor for stock prices and valuations. Historically, benefiting from a dual boost of turnover ratio and market prices in the short term, HKEX’s stock price has demonstrated significant upside elasticity, showing an increase similar to that of the Hang Seng TECH Index, while being far higher than the overall market cap; in the long term, benefiting from the sustained growth of endogenous Market Cap and exogenous Market Cap, HKEX also exhibits long-term appreciable alpha attributes. Since 2025, with the value reassessment of Chinese assets, the trading activity of Hong Kong stocks has notably rebounded; however, compared to September 2024 and historical averages, HKEX’s current valuation remains low, indicating potential for catch-up growth.

Editor/Rocky