How Investors May Respond To Hong Kong Exchanges and Clearing (SEHK:388) Standardising Board Lots to Court Chinese Tech IPOs
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Recently, Hong Kong Exchanges and Clearing (HKEX) moved to broaden its appeal as a fundraising venue by attracting more mainland AI and chipmakers, advancing GigaDevice Semiconductor’s Hong Kong IPO, and proposing standardised board lot sizes alongside more flexible post-listing public float rules.
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These reforms point to HKEX sharpening its role as a capital-raising gateway for Chinese technology firms while aiming to enhance liquidity and transparency across its market.
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We’ll now examine how HKEX’s push to standardise board lot sizes could influence its investment narrative around liquidity, efficiency and growth.
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To own HKEX, you have to believe Hong Kong can remain a preferred capital raising hub for Chinese issuers, particularly in higher growth sectors like technology. The latest reforms around board lot sizes and float flexibility appear supportive of near term listing and trading activity, while competition from onshore exchanges and shifting capital flows remains a central risk that could still weigh on HKEX’s ability to attract and retain new IPOs.
Of the recent measures, the proposal to standardise board lot sizes looks most relevant for the fundraising push around AI and chipmakers. By narrowing trading units and lowering the cost of a single lot, HKEX is trying to make secondary trading more accessible, which may support liquidity in newly listed tech names and strengthen one of the key catalysts for the business: healthy IPO pipelines coupled with active post listing turnover.
Yet, even as these reforms progress, investors should be aware that rising competition from mainland exchanges could still…
Read the full narrative on Hong Kong Exchanges and Clearing (it’s free!)
Hong Kong Exchanges and Clearing’s narrative projects HK$30.5 billion revenue and HK$19.3 billion earnings by 2028. This requires 6.1% yearly revenue growth and about HK$3.9 billion earnings increase from HK$15.4 billion today.
Uncover how Hong Kong Exchanges and Clearing’s forecasts yield a HK$504.75 fair value, a 24% upside to its current price.
Seven fair value estimates from the Simply Wall St Community span roughly HK$214 to HK$9,516.99, so you are seeing very different expectations for HKEX’s potential. Set against this wide range, the risk that faster growing onshore exchanges siphon listings away from Hong Kong could be a key swing factor for how those expectations play out over time.
