Hong Kong: Why buy Hong Kong Exchanges and Clearing?
For readers not familiar with Hong Kong, this company (HKEx, code 388 on the HK Exchange) is our stock market. This means that its woes are very much driven by stock market turnover. There are a couple of good reasons why you should look to buy into this story:
First, Ernst & Young guess that this year, we in Hong Kong will witness IPOs worth HK$370 billion. That is a great deal to place - and a great deal of stock to turn over in our market.
Secondly, if my view of rising market volatility is correct this year, then expect even greater turnover on the Hong Kong stock market. That will propel HKEx onwards and upwards.
Finally, if more and more mainlanders buy into our property and thus into our stock market, here you have another driver of turnover.
