On March 27, Hong Kong Exchanges and Clearing Limited (HKEX) announced the signing of a Memorandum of Understanding (MOU) with Bursa Malaysia to enhance cooperation and connectivity between the two capital markets. The collaboration will cover areas including dual listings, exchange-traded funds (ETFs), index and investment product development, Islamic finance products, and carbon markets. As part of the partnership, the two exchanges jointly introduced a new co-branded index—the HKEX Bursa Malaysia Large Cap Index. This index is designed to help investors capture cross-market opportunities by tracking the performance of the 60 largest companies by market capitalization listed in Hong Kong and Malaysia, with 30 constituents from each market. The index weighting is approximately 60% for Hong Kong-listed companies and 40% for Malaysian-listed companies. The Group Chief Executive Officer of HKEX, Bonnie Chan, stated, "We are pleased to collaborate with Bursa Malaysia to promote connectivity between our two capital markets. Southeast Asia is one of the world's fastest-growing economic regions, with Malaysia at its core, demonstrating significant potential in innovation, consumption, and resources. HKEX serves as Asia's most dynamic international financial market hub, providing investors with access to opportunities in Mainland China through its unique connectivity mechanisms." Chan added, "Strengthening ties with markets across Asia is a key part of our strategy. As we work to build a diverse asset ecosystem and attract more international capital into Asia, especially amid increasing macroeconomic uncertainty, the launch of the co-branded index and the signing of the MOU represent new milestones in regional connectivity and deliver tangible benefits to the market." The Chief Executive Officer of Bursa Malaysia, Datuk Fadil Mohamed, commented, "Against a backdrop of heightened global market volatility and rapid capital movement across regions, internationalization has become a critical driver for sustained exchange growth. This partnership with HKEX aims to enhance market vitality, expand opportunities for listed companies and investors, and further strengthen Malaysia's connectivity and visibility in the global investment landscape." Datuk Fadil Mohamed further noted, "The robustness of Malaysia's capital market is underpinned by strong support from domestic institutional investors and its leading position in Islamic capital markets. These advantages make Bursa Malaysia an important platform connecting companies with Shariah-compliant investments, serving as a bridge for regional and global capital and a key gateway for businesses expanding into ASEAN's high-growth markets. The launch of the HKEX Bursa Malaysia Large Cap Index also marks a significant initial milestone under the MOU, helping to raise the market visibility of Malaysian listed companies among regional investors and showcasing the diversified structure of Malaysia's capital market." The introduction of the HKEX Bursa Malaysia Large Cap Index reflects HKEX's commitment to building an exchange-centric index ecosystem. This initiative aims to improve liquidity in both primary and secondary markets and address growing demand for diversified investment products. Currently, 103 Southeast Asian companies are listed on HKEX, with 30 of them being Malaysian companies. HKEX will continue to work closely with exchanges and partners across Asia to strengthen regional ties, expand product offerings, and foster the long-term prosperity of global capital markets.
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