HKEX and Bursa Malaysia launch joint-named index and sign cooperation memorandum.

On March 27, HKEX announced that it had signed a cooperation memorandum with the Malaysian Stock Exchange to enhance cooperation and connection between the two capital markets. The cooperation includes initiatives such as dual listings, exchange-traded funds (ETFs), index and investment product development, Islamic financial products, and carbon markets. As part of the cooperation, the two exchanges jointly launched a new co-branded index - the HKEX Malaysia Exchange Composite Index. This index aims to help investors capture more cross-market opportunities by tracking the performance of the 60 largest companies listed in both Hong Kong and Malaysia, with each market accounting for 30 components of the index and a weighting of approximately 60% for Hong Kong-listed companies and 40% for Malaysian-listed companies. HKEX Chief Executive Officer Nicolas Aguzin said, "We are delighted to collaborate with the Malaysian Stock Exchange to promote connectivity between the two capital markets. Southeast Asia is one of the fastest-growing regions in the global economy, with Malaysia at its core, showing tremendous potential in innovation, consumption, and resources. HKEX is the most vibrant international financial hub in Asia, opening doors for investors to connect with opportunities in mainland China through its unique connectivity mechanism." Aguzin continued, "Strengthening ties with markets across Asia is a strategic priority for us. As we strive to build a diverse asset ecosystem and attract more international capital into Asia, particularly in light of increasing macroeconomic uncertainty, the launch of the co-branded index and the signing of the cooperation memorandum signify new progress in regional connectivity and bring tangible benefits to the market." Datuk Muhamad Umar Swift, the CEO of the Malaysian Stock Exchange, said, "As global market volatility intensifies and capital flows rapidly across regions, promoting internationalization has become a key driver of exchange growth. This cooperation with HKEX aims to enhance market dynamism, expand opportunities for listed companies and investors, and further enhance Malaysia's connectivity and visibility in the global investment landscape." Datuk Muhamad Umar Swift added, "The robust development of the Malaysian capital markets is largely due to the strong support from local institutional investors and its leading position in the Islamic capital markets field. These advantages make the Malaysian Stock Exchange an important platform for connecting enterprises with Shariah-compliant investments, bridging regional and global capital and serving as a key gateway for companies to expand into the high-growth ASEAN market. The launch of the HKEX Malaysia Exchange Composite Index also marks an important milestone under the related Memorandum of Understanding (MOU) between the two parties, helping to enhance the market visibility of Malaysian-listed companies among regional investors and showcasing the diverse layout of the Malaysian capital market." The introduction of the HKEX Malaysia Exchange Composite Index demonstrates HKEX's commitment to building an exchange-centric index ecosystem. This initiative aims to enhance liquidity in the primary and secondary markets and address the increasing demand for diversified investment products in the market. Currently, there are 103 Southeast Asian companies 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 connections, expand product coverage, and promote the long-term prosperity of global capital markets.