REAL-TIME GLOBAL RESEARCH
The Global Point
Research evidence excerpt
Point |
The Global Point
Tuesday, 11 August 2026
Asia | CEEMEA | Western Europe | Key Rating and Target Price Changes
Asia
Hong Kong Exchanges & Clearing (0388.HK) - How Sustainable Is HK$300bn
ADT?
HK ADT is arguably the most important earnings and share price driver of HKEX, as
the exchange generates more than half of its revenues from equities-related
businesses. After daily turnover nearly doubled yoy to HK$250bn in 2025, HK ADT
rose further to HK$283bn in 1H26 and to HK$307bn in July. In this report, we try to
dissect HK ADT growth over the last five years. We believe there are multiple
structural drivers to support sustainably higher trading activity in HK, especially
with support from a vibrant IPO market. We believe ADT growth could prove to be
more resilient than expected, and our forecast is 3-11% above cons. Valuation is
attractive at 26x FY27E PE post ytd de-rating (vs. historical average 32x).
Michael Zhang | Judy Zhang
HKEX Equities ADT Breakdown by IPO Year
2021 or before
(HK$bn)
250
2022
2023
2024
200
2025
47
1H26
Quarterly ADT of New Listings since 2025
2025 New Listings
(HK$bn)
50
10
14
6
2026 New Listings
40
30
150
15
100
50
1
138
96
77
174
178
0
2021
2022
2023
2024
6
10
97
2025
1H26
28
20
01
1Q25
03
0
6
0
8
10
2Q25
3Q25
4Q25
1Q26
17
2Q26
12
Jul 26
Precision Tsugami China (1651.HK) - Initiate at Buy/High Risk: Set to Ride AI
Liquid Cooling, Humanoid Robot Wave
A subsidiary of Precision Tsugami Japan (6101.T), debt-free Precision Tsugami
China (PTC) is a high precision CNC machine tool maker that specializes in
precision lathe machines (84% of FY26 sales). Against its key competitor Citizen
Watch (7762.T), PTC’s advantage is in “Japan quality + China cost” as it mainly
adopts key components from Japan and manufactures in China. We initiate on
PTC, a >30% ROE company, at Buy/High Risk with a TP of HK$72, expecting it to
ride the surging capex of the electronics and AI liquid cooling sectors, which
combined account for ~40% of new orders, surpassing <30% from auto.
Humanoid robots could be the next big driver, from just ~2% of order contribution.
PTC’s potential Stock Connect inclusion could also be a near-term positive
catalyst.
Jamie Wang
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