KUALA LUMPUR: Bursa Malaysia and Hong Kong Exchanges and Clearing Ltd (HKEX) have signed a memorandum of understanding (MoU) to deepen collaboration, expand regional market connectivity and unlock cross‑border investment opportunities.
The MoU could potentially see more cross-border corporate exercises between Malaysia and Hong Kong, including dual listings.
“One key benefit of a dual listing is to make it as frictionless as possible and to ensure its cost efficiencies.
“Malaysian companies can tap into HKEX as a secondary market and this is what we hope will eventually become a reality,” Bursa Malaysia chief executive officer Datuk Fad’l Mohamed said during a press conference at the signing of the MoU.
As the first initiative under this collaboration, Bursa Malaysia and HKEX unveiled the HKEX Bursa Malaysia Large Cap Index, a co‑branded benchmark designed to strengthen Malaysia-Hong Kong capital market integration, and support future cross-market investment opportunities, including products such as exchange-traded funds (ETFs).
“The launch of the HKEX Bursa Malaysia Large Cap Index marks an important early milestone under this MoU, elevating the market presence of Malaysian public listed companies among investors in the region and highlighting the diversity of our sectors,” Fad’l said.
The index brings together 30 Malaysian blue‑chip constituents and 30 Hong Kong Southbound‑eligible large‑cap companies, Bursa Malaysia said in a statement.
Malaysian constituents in the index span key sectors that form the backbone of the country’s economy, including consumer products and services (23%), financial services (20%), utilities (13%), as well as telecommunications and media (13%), the statement further noted.
Bursa Malaysia said the MoU enables cooperation in five strategic areas for the development of more connected and investable markets.
These include the joint exploration of streamlined pathways for dual listings between Hong Kong and Malaysia, the co‑development of market‑driven indexes, and cooperation to enhance access to and promotion of ETFs.
The collaboration will also facilitate the development of syariah‑compliant securities in both markets and cooperate in areas relating to carbon markets, it said.
Fad’l noted that Malaysia’s market is underpinned by a strong base of domestic institutional investors alongside its leadership in the Islamic capital market.
“These strengths position Bursa Malaysia as a platform that connects corporates and syariah‑compliant investments with regional and global capital, while serving as a gateway for companies seeking access to Asean’s growth markets.”
Moreover, HKEX chief executive officer Bonnie Chan said she is delighted to be partnering with Bursa Malaysia to drive enhanced connectivity between the capital markets.
“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,” she added.
