Hong Kong (HSI) Capital Markets Industry Analysis
UpdatedNov 26, 2022
DataAggregated Company Financials
Companies98
- 7D-1.0%
- 3M-9.5%
- 1Y-27.7%
- YTD-30.7%
Over the last 7 days, the Capital Markets industry has dropped 1.0%, driven by a pullback from Hong Kong Exchanges and Clearing of 4.5%. On the other hand China Huarong Asset Management is actually up 16%. The industry has fallen 28% in the last year. As for the next few years, earnings are expected to grow by 20% per annum.
Industry Valuation and Performance
Has the Hong Kong Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | HK$967.6b | HK$209.8b | HK$40.7b | 15.5x | 23.8x | 4.6x |
| Tue, 25 Oct 2022 | HK$882.8b | HK$213.4b | HK$42.8b | 10x | 20.6x | 4.1x |
| Thu, 22 Sep 2022 | HK$957.7b | HK$220.1b | HK$41.0b | 10.1x | 23.4x | 4.4x |
| Sat, 20 Aug 2022 | HK$1.1t | HK$236.0b | HK$55.5b | 8.4x | 19.6x | 4.6x |
| Mon, 18 Jul 2022 | HK$1.1t | HK$238.2b | HK$57.2b | 9.6x | 19.2x | 4.6x |
| Wed, 15 Jun 2022 | HK$1.1t | HK$238.2b | HK$59.6b | 8.1x | 18.9x | 4.7x |
| Fri, 13 May 2022 | HK$1.0t | HK$239.1b | HK$59.9b | 8.1x | 17.1x | 4.3x |
| Sun, 10 Apr 2022 | HK$1.2t | HK$253.9b | HK$66.1b | 9.3x | 17.5x | 4.6x |
| Tue, 08 Mar 2022 | HK$1.2t | HK$267.1b | HK$67.5b | 6.6x | 17.1x | 4.3x |
| Thu, 03 Feb 2022 | HK$1.3t | HK$265.3b | HK$67.4b | 7.4x | 19.7x | 5x |
| Sat, 01 Jan 2022 | HK$1.4t | HK$265.4b | HK$67.3b | 7.4x | 20.8x | 5.3x |
| Mon, 29 Nov 2021 | HK$1.4t | HK$264.6b | HK$72.0b | 7.8x | 18.9x | 5.1x |
| Wed, 27 Oct 2021 | HK$1.4t | HK$256.2b | HK$66.7b | 8.6x | 21.4x | 5.6x |
| Fri, 24 Sep 2021 | HK$1.5t | HK$245.1b | HK$66.4b | 8.9x | 22.2x | 6x |
| Sun, 22 Aug 2021 | HK$1.4t | HK$243.0b | HK$70.7b | 10x | 19.6x | 5.7x |
| Fri, 09 Jul 2021 | HK$1.5t | HK$243.0b | HK$70.7b | 10.5x | 20.7x | 6x |
| Thu, 01 Apr 2021 | HK$1.4t | HK$230.3b | HK$66.4b | 9.9x | 21.3x | 6.2x |
| Sun, 03 Jan 2021 | HK$1.6t | HK$220.2b | HK$60.5b | 11x | 25.8x | 7.1x |
| Wed, 07 Oct 2020 | HK$1.3t | HK$191.0b | HK$50.0b | 10.9x | 25.3x | 6.6x |
| Tue, 30 Jun 2020 | HK$1.1t | HK$205.8b | HK$39.5b | 12.2x | 27.7x | 5.3x |
| Fri, 03 Apr 2020 | HK$886.7b | HK$202.8b | HK$38.9b | 14.5x | 22.8x | 4.4x |
| Mon, 06 Jan 2020 | HK$990.5b | HK$211.1b | HK$45.3b | 17.3x | 21.9x | 4.7x |
Price to Earnings Ratio
19.5x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Capital Markets industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 22.6x.
- The 3-year average PS ratio of 5.4x is higher than the industry's current PS ratio of 4.6x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have declined 3.6% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.3% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Financials industry?
| HK Market | -0.23% | |
| Financials | 3.68% | |
| Capital Markets | -1.01% | |
| Asset Management | 3.79% | |
| Investment Banking and Brokerage | 0.88% | |
| Diversified Capital Markets | -0.72% | |
| Financial Exchanges and Data | -4.38% | |
Industry PE
- Investors are most optimistic about the Financial Exchanges and Data industry even though it's trading below its 3-year average PE ratio of 53.0x.
- Analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings growth of 9.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Asset Management industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 41% per year.
- In contrast, the Financial Exchanges and Data industry is expected to see its earnings grow by 17% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 2799 China Huarong Asset Management | HK$0.35 | 16.4% +HK$4.0b | n/a | PS1.7x | |
| 1359 China Cinda Asset Management | HK$0.95 | 9.2% +HK$3.1b | -24.0% | PE3.8x | |
| 3908 China International Capital | HK$13.70 | 1.6% +HK$1.1b | -26.4% | PE6.8x | |
| 6881 China Galaxy Securities | HK$3.69 | 2.8% +HK$1.0b | -13.8% | PE3.9x | |
| 1140 Wealthking Investments | HK$0.49 | 5.3% +HK$240.8m | -33.1% | PE20.1x |