UBS Expects Hong Kong Exchanges and Clearing Q3 Profit to Decline Year on Year, Quarterly Average Daily Turnover Seen Slashing 11%, Target Price Cut to $420

UBS expects Hong Kong Exchanges and Clearing's third-quarter profit to decline year on year, with average daily turnover down 11 per cent year on year to $254 billion, and has cut its target price to $420. Net profit after tax in the period is expected to be $4.6 billion and revenue $7.6 billion, down 14 per cent and 11 per cent quarter on quarter respectively, which would mark the first year-on-year profit decline in 10 quarters. Shares of Hong Kong Exchanges and Clearing fell nearly 2 per cent yesterday, closing at $373.6.