Goldman Sachs: Hong Kong's first "Five-Year Plan" benefits HKEX's (00388) multi-asset strategy; maintains "Buy" rating.

Goldman Sachs has released a research report stating that Hong Kong's first "Five-Year Plan" and the new Policy Address include a roadmap for enhancing Hong Kong's status as an international financial center, supporting HKEX's (00388) goal of developing a multi-asset strategy. Plans to improve connectivity between mainland enterprises and international capital are also expected to drive product supply and liquidity in the Hong Kong market. The bank maintains a "Buy" rating on HKEX with a 12-month target price of HK$532, based on a three-stage dividend discount model, equivalent to 34x forecast 2027 P/E. The bank believes that, benefiting from RMB internationalization, HKEX's next phase of growth momentum remains in expanding fixed income and currency (FIC) products. In cash equities, listing reforms include simplifying prospectus disclosure, promoting dual primary and secondary listings in Southeast Asian and "Belt and Road" markets, and relaxing trading, spin-off, and restructuring rules. In terms of market infrastructure and ecosystem, HKEX is advancing preparations for a potential "T+1" settlement cycle, while the SFC is preparing to include RMB counters in Southbound Stock Connect and encourage listed companies to establish RMB counters. In FIC, the HKMA will introduce a 7-day offshore RMB liquidity tender mechanism, and the SFC supports HKEX in enriching RMB FX futures products. In addition, the government plans to expand dim sum bond issuance, and HKEX is expected to launch an offshore RMB bond index. In commodities, the Gold Central Clearing and Settlement System is expected to launch in Q1 2027, and HKEX will introduce RMB-denominated, physically settled gold futures.