Core Viewpoint - Goldman Sachs expects Hong Kong Stock Exchange's investment income for Q3 to be approximately half of the H1 level, influenced by a decline in HIBOR, a reduction in external investment portfolios, and revisions to margin funding interest-sharing agreements [1] Group 1: Market Performance - The estimated southbound trading accounts for a year-on-year growth of 30% to 40% in the average daily turnover (ADT) [1] - Southbound trading and overall ADT will determine short-term stock price movements [1] Group 2: Future Projections - Goldman Sachs forecasts the ADT for October to December to be around HKD 260 billion, aligning closely with consensus earnings per share [1] - The firm believes that southbound trading is a unique factor contributing significantly to overall ADT during this upward cycle [1] Group 3: Market Sentiment - There is uncertainty in the market regarding the future flow of funds in southbound trading, despite its advantages such as diversification, unique stocks, and valuation discounts [1] - Goldman Sachs remains confident that the flow and participation in southbound trading will structurally increase [1] Group 4: Price Target Adjustment - The 12-month price target has been raised by 4% from HKD 524 to HKD 544, predicting a price-to-earnings ratio of 40 times for the fiscal year 2026, while maintaining a "buy" rating [1]