HONG KONG, July 31 (Reuters) - Credit Suisse has downgraded shares in Asia's top bourse operator, Hong Kong Exchanges and Clearing (HKEx) <0388.HK>, to underperform from neutral, on dwindling trading activity and falling investment income.
Credit Suisse also slashed its target price on HKEx to HK$90 from HK$150. The stock closed Wednesday at HK$116.50.
"HKEx revenues are coming under pressure on multiple fronts. Trading activity in both equity and derivative markets has faded while investment income on margin and clearing house funds is expected to suffer as a result of lower deposit rates," analysts Christopher Esson and Frances Feng wrote in a note to investors.
Turnover on the main exchange has been fading fast, falling to a 16-month low of HK$41.5 billion on Monday, with investors staying on the sidelines in the face of increased uncertainties in the global financial markets.
With a year-to-date fall of 47.33 percent, HKEx is one of the worst performing stocks on the benchmark Hang Seng Index <.HSI>
