Hong Kong Exchanges and Clearing Limited and the Korea Exchange have launched the first co-branded Hong Kong-Korea cross-market index series.

Hang Seng Index Company and the Korea Exchange jointly announced today (March 31) the launch of the "Hang Seng Korea Exchange Index Series". This collaboration marks the first time that the two parties have jointly launched a cross-market index, which is an important milestone in deepening the interconnection between the capital markets of China Hong Kong and South Korea. The new index series combines representative benchmark indexes from both regions, assisting investors in seizing opportunities from listed companies in the two leading financial markets in Asia, thereby making diversified investment allocations. The stock markets in Hong Kong and South Korea performed strongly last year, and with strong demand from investors, this index series was introduced. The index series also provides support for the expansion of the interconnection between the stock markets of Hong Kong and the mainland, helping product issuers launch financial products and promoting two-way capital flow between the two markets. The first batch of four cross-market indices to be launched are as follows: Hang Seng Korea Exchange Hong Kong Korea Large Cap Index: The Hang Seng Index Hong Kong Stock Connect Index consisting of constituent stocks eligible for trading via the Stock Connect, combined with the reputable Korea KOSPI200 index. Hang Seng Korea Exchange Hong Kong Korea Technology Semiconductor Index: Combines the Hang Seng Technology Index and KRX Semiconductor Top 15 index ("KRXSEMICONTOP15"), capturing opportunities in the technology and semiconductor markets of both regions. Hang Seng Korea Exchange Hong Kong Korea Technology Index: Combines the Hang Seng Technology Index and KOSPI200 IT index ("KS200IT"), focusing on leading technology companies. Hang Seng Korea Exchange Hong Kong Korea Life Science Medical Index: Combines the Hang Seng Biotechnology Index and KOSPI200 Healthcare Index ("KOSPI200SECTOR-I1"), targeting the rapidly growing healthcare sector. Hang Seng Index Company and the Korea Exchange plan to introduce more thematic indices later this year, following emerging trends in both markets to meet the evolving needs of investors. Joseph Chan, Deputy Secretary for Financial Services and the Treasury of the HKSAR Government, commented, "This collaboration marks the first time that Hang Seng Index Company has partnered with an overseas exchange on indexing. By further strengthening the connection between Hang Seng Index Company and the Korea Exchange, this collaboration will promote cross-border market interconnection, consolidate Hong Kong's position as an international financial center, and facilitate future inflows of funds to drive the continuous growth and innovation of the two markets." Sunghwan Chun, Consul General of the Republic of Korea in Hong Kong, commented, "This collaboration leverages Hong Kong's role as a key international investment hub and expands channels for entering the Korean capital market, marking a significant milestone. Through future ETF developments, this collaboration will establish more effective channels to promote global capital inflows into Korea and further enhance cross-market interconnection between Hong Kong and Korea. We hope that this collaboration will drive the continued growth of both companies' businesses and further deepen cooperation between the financial markets of the two regions." Li Wenlong, Executive Chairman of Hang Seng Index Company, stated, "We are pleased to partner with the Korea Exchange to combine leading benchmark indexes from Hong Kong and Korea. By introducing indices that are eligible for Stock Connect trading, we support the development of cross-market financial products, further promoting two-way capital flow between the mainland and global markets. This collaboration reflects our commitment to deepening international market connections, consolidating Hong Kong's position as a leading international financial center and its role as a super-connector." Buyeon Yi, Head of the Future Business Division of the Korea Exchange, commented, "Under the government's 'Value-up' plan, the Korean capital market has undergone substantial structural improvements, further enhancing corporate value and shareholder returns. Leveraging these advantages, the joint index series combines key industries in Korea with the strengths of Hong Kong connecting to the global capital markets, providing effective investment solutions. We will continue to expand our cooperation and develop more thematic indices to cater to the evolving needs of investors."