Hong Kong Exchanges and Clearing (0388) said on Friday that it has signed a Memorandum of Understanding with Bursa Malaysia Berhad, with collaboration including the launch of a new co-branded benchmark, the HKEX Bursa Malaysia Large Cap Index.
The index measures the performance of the 60 largest companies listed in Hong Kong and Malaysia by market capitalisation, with 30 constituents drawn from each market and index weightings of about 60 percent for Hong Kong-listed companies and 40 percent for Malaysian-listed companies.
The two exchanges will also cooperate on dual listings, exchange-traded funds, joint development of indices and investment products, Shariah-compliant securities, and carbon markets, HKEX said.
Malaysia sits at the heart of Southeast Asia - one of the world's fastest growing regions - known for exciting opportunities in sectors such as innovation, consumer, and resources, said Bonnie Chan Yi-ting, chief executive of HKEX.
Expanding HKEX's engagement with the region is a key strategic priority as it continues to build a multi-asset product ecosystem, drawing global liquidity to Asia at a time of heightened macro uncertainties, she added.
Chan noted that the launch of the HKEX Bursa Malaysia Large Cap Index, together with the signing of this MOU, marks the latest step in its journey to advance regional connectivity through tangible outcomes that benefit markets.
Bursa Malaysia chief executive, Dato' Fad'l Mohamed, 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."
