Hong Kong Exchanges and Clearing (HKEX) and its Malaysian counterpart are launching a co-branded index as part of their plan to work together to enhance capital market connectivity between both jurisdictions.
The HKEX Bursa Malaysia Large Cap Index is 60% weighted to firms listed in Hong Kong and 40% to firms in Malaysia. It tracks performance of the 60 largest companies by market capitalisation in Hong Kong and the Southeast Asian country.
The move is part of a broader pact between the Hong Kong and Malaysian bourses to cooperate on dual listings, as well as joint development of indices, exchange-traded funds, shariah compliant securities, and carbon markets,HKEX says in a statement on March 27.
The bourse says the large-cap benchmark is part of its commitment to build “an exchange-led index ecosystem that will add vibrancy across the primary and secondary markets, whilst meeting growing demand for diversified regional investment opportunities”.
There are now 103 Southeast Asian companies listed in Hong Kong, including 30 from Malaysia.
According to Bonnie Chan, CEO of HKEX, Southeast Asia offers “exciting opportunities in sectors such as innovation, consumer and resources”.
“As global markets become more volatile and capital flows rotate dynamically across geographies, internationalisation is a vital growth enabler for exchanges,” says Fad’l Mohamed, CEO of Bursa Malaysia Berhad.
