Hong Kong Exchanges and Clearing Limited (0388.HK) stock analysis

In our weekly check, Hong Kong Exchanges and Clearing Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 5.

About Hong Kong Exchanges and Clearing Limited

Hong Kong Exchanges and Clearing Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Hong Kong, listed on HKSE as 0388.HK.

What our checks show for 0388.HK

Red flags

• Profits not backed by cash
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.2 years.
• Return on capital (ROCE) is only 4.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 2.1 points over 5 years, to 62.3%: the company keeps less of each sale as profit.
• Analysts expect only about 4% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.6 points from today's 62.3%.
• Free cash flow is only 0% of revenue.

Strengths

• Debt is low: 0.02x equity.
• Operating profit covers interest 267 times over.
• The gross margin is 86% and has risen by 2.9 points: pricing power is holding.
• Revenue grew 23.4% a year over the last 3 years.
• Earnings per share grew 25.3% a year over the last 3 years.
• Net profit grew 25.3% a year over the last 3 years.

Next earnings report: 2026-11-06

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Questions

What grade does Hong Kong Exchanges and Clearing Limited (0388.HK) have?

In our weekly check, Hong Kong Exchanges and Clearing Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0388.HK stock?

This week's biggest flags for Hong Kong Exchanges and Clearing Limited: Profits not backed by cash, Deep past fall, Slow recovery after falls. In total 9 of 24 checks show a warning or a red flag.

What does Hong Kong Exchanges and Clearing Limited do?

Hong Kong Exchanges and Clearing Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Hong Kong, listed on HKSE as 0388.HK.

When does Hong Kong Exchanges and Clearing Limited report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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