Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) it has signed a Memorandum of Understanding (MOU) with Bursa Malaysia Berhad (Bursa Malaysia) to strengthen collaboration and enhance capital market connectivity between Hong Kong and Malaysia, including cooperation on dual listings, ETFs, joint development of indices and investment products, Shariah-compliant securities, and carbon markets.
As part of the collaboration, the two exchanges announced the launch of the HKEX Bursa Malaysia Large Cap Index, a new co branded benchmark designed to enhance cross market access for investors. It 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 approximately 60 per cent for Hong Kong-listed companies, and 40 per cent for Malaysian-listed companies.
HKEX Chief Executive Officer, Bonnie Y Chan, said: “We are delighted to be partnering with Bursa Malaysia to drive enhanced connectivity between our capital markets. 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, while HKEX is home to Asia’s most vibrant international marketplace, offering exclusive connectivity to opportunities on the Chinese Mainland.
“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,” Ms Chan added.
Bursa Malaysia Chief Executive Officer, Dato’ Fad’l Mohamed, said: “As global markets become more volatile and capital flows rotate dynamically across geographies, internationalisation is a vital growth enabler for exchanges. 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. The launch of the HKEX Bursa Malaysia Large Cap Index marks an important early milestone under this MOU, elevating the market presence of Malaysian PLCs among investors in the region and highlighting the diversity of our sectors,” he added.
The launch of the HKEX Bursa Malaysia Large Cap Index is part of HKEX's commitment to building an exchange-led index ecosystem that will add vibrancy across the primary and secondary markets, whilst meeting growing demand for diversified regional investment opportunities.
HKEX also hosts 30 Malaysian companies listed on its Exchange, part of a total of 103 issuers from Southeast Asia in Hong Kong.
HKEX will continue to work closely with exchanges and partners across Asia to strengthen regional connectivity, broaden access to its products and support the long term development of global capital markets.
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(Left to right) Bursa Malaysia Chief Executive Officer Dato’ Fad’l Mohamed and HKEX Chief Executive Officer Bonnie Y Chan sign a Memorandum of Understanding at Bursa Malaysia in Kuala Lumpur.
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(Left to right) Bursa Malaysia Chief Executive Officer Dato’ Fad’l Mohamed and HKEX Chief Executive Officer Bonnie Y Chan exchange Tokens of Appreciation.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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