Bursa Malaysia and Hong Kong Exchanges and Clearing Limited (HKEX) are expanding cross-border market ties with a new large-cap index and a broader cooperation agreement.
As the first initiative under the agreement, the exchanges unveiled the HKEX Bursa Malaysia Large Cap Index.
The benchmark combines 30 large-cap companies listed in Malaysia and 30 listed in Hong Kong.
The index is intended to strengthen capital market links between the two markets and could support future cross-market investment opportunities, including ETFs.
Bursa Malaysia and HKEX will explore ways to streamline dual listing pathways, co-develop market-driven indexes, improve access to and promotion of ETFs, facilitate the development of Shariah-compliant securities, and collaborate in carbon markets.
Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia, said,
“This collaboration with HKEX aligns with our efforts to boost market vibrancy, expand opportunities for PLCs and investors, and enhance Malaysia’s connectivity and visibility within the global investment landscape. Malaysia’s market is underpinned by a strong base of domestic institutional investors alongside our leadership in Islamic capital market.
These strengths position Bursa Malaysia as a platform that connects corporates and Shariah‑compliant investments with regional and global capital, while serving as a gateway for companies seeking access to ASEAN’s growth markets.”
Bonnie Y Chan, Chief Executive Officer of HKEX, said,
“Expanding our engagement with the region is a key strategic priority as we continue our work to build a multi asset product ecosystem, drawing global liquidity to Asia at a time of heightened macro uncertainties.
The launch of the HKEX Bursa Malaysia Large Cap Index, together with the signing of this MOU, marks the latest step in our journey to advance regional connectivity through tangible outcomes that benefit our markets.”
The Malaysian side of the index is made up of blue-chip stocks from sectors including consumer products and services, financial services, utilities, and telecommunications and media.
Its Hong Kong constituents are Southbound-eligible large-cap companies.
This article first appeared on Fintech News Malaysia.
Featured image: Edited by Fintech News Hong Kong, based on image by Bursa Malaysia via LinkedIn