HKEX and Boursa Malaysia Explore Cross-Border Collaboration Including ETF and Dual Listings

The bourse operators of Hong Kong and Malaysia are exploring a range of collaborations, from dual listings and exchange-traded funds (ETFs) to Islamic finance, to forge closer ties between the city and the Southeast Asian country. Hong Kong Exchanges and Clearing (HKEX) CEO Bonnie Chan Yiting and Boursa Malaysia CEO Dato Fad'l Mohamed unveiled their joint development plans in a media briefing in Hong Kong on Wednesday as HKEX hosted the 40th Asian and Oceanian Stock Exchanges Federation (AOSEF) General Assembly at HKEX Connect Hall in Exchange Square in Central. In the first major collaboration with Boursa Malaysia, HKEX has granted Da Cheng International Asset Management a licence to issue an ETF based on the HKEX Bursa Malaysia Large Cap Index, which tracks scores of the largest companies listed in Hong Kong and Malaysia, with 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 said the two exchanges could also collaborate on dual listings, as Malaysia would welcome listings by Hong Kong and mainland firms. About 30 Malaysian companies were currently listed in Hong Kong, accounting for almost a third of 103 Southeast Asian issuers, HKEX data showed. The biggest player is Guoco Group, which is part of the Hong Leong Group, a Malaysian conglomerate.