Hong Kong Exchanges and Clearing (HKEX) CEO Bonnie Chan Yiting and Bursa Malaysia CEO Dato Fad’l Mohamed announced collaboration plans on Wednesday in Hong Kong, covering dual listings, exchange-traded funds (ETFs) and Islamic finance. In their first major tie-up, HKEX has licensed Da Cheng International Asset Management to issue an ETF tracking the HKEX Bursa Malaysia Large Cap Index. Chan said the move underscores investor demand for cross-border products.
Hong Kong Exchanges and Clearing (HKEX) and Bursa Malaysia are exploring collaborations including dual listings, exchange-traded funds (ETFs) and Islamic finance to strengthen ties between the city and the Southeast Asian nation.
HKEX CEO Bonnie Chan Yiting and Bursa Malaysia CEO Dato Fad’l Mohamed unveiled the plans at a media briefing in Hong Kong on Wednesday, held alongside the 40th Asian and Oceanian Stock Exchanges Federation (AOSEF) General Assembly at HKEX Connect Hall in Exchange Square, Central.
In the first major collaboration, HKEX granted Da Cheng International Asset Management a licence to issue an ETF based on the HKEX Bursa Malaysia Large Cap Index, which tracks large companies listed in Hong Kong and Malaysia, comprising 62 per cent Hong Kong stocks and 38 per cent Malaysian shares.
"This development underscores the growing demand from investors for cross-border products and diversified regional exposure and highlights how collaboration between exchanges can directly support market innovation," Chan said.
Mohamed noted potential dual listings, with Malaysia welcoming Hong Kong and mainland firms. About 30 Malaysian companies are currently listed in Hong Kong, accounting for almost a third of 103 Southeast Asian issuers, according to HKEX data. The largest is Guoco Group, part of the Malaysian Hong Leong Group conglomerate.
