Hong Kong Exchanges & Clearing Ltd. (00388.HK) saw its shares soar 5.86% in intraday trading on Friday, propelled by investor optimism around the rise of artificial intelligence (AI) and a recovery in sentiment towards Chinese stocks.
According to Citi Research analyst Michael Zhang, the surge in AI has fueled investor sentiment towards tech stocks, leading to a rise in trading volumes. As a key beneficiary of this trend, HKEX is likely to remain supported in the near term. Furthermore, the improving market sentiment towards Chinese stocks, coupled with the increasing number of dual-listings of mainland companies in Hong Kong, could contribute to a recovery in the Hong Kong IPO market.
Reflecting this positive outlook, Citi has upgraded its rating on HKEX to Buy from Sell, raising the target price to HK$370 from HK$275.
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