Bursa Malaysia and Hong Kong Exchanges and Clearing Ltd (HKEX) have signed a memorandum of understanding (MoU) aimed at deepening collaboration, enhancing regional market connectivity, and unlocking cross-border investment opportunities.
The MoU paves the way for more cross-border corporate activities between Malaysia and Hong Kong, including potential dual listings.
“One key benefit of dual listings is to make the process seamless and cost-efficient. Malaysian companies can use HKEX as a secondary market, which we hope will soon become a reality,” said Datuk Fad’l Mohamed, CEO of Bursa Malaysia, at the signing press conference.
As the first initiative under this partnership, Bursa Malaysia and HKEX unveiled the HKEX Bursa Malaysia Large Cap Index, a co-branded benchmark designed to strengthen capital market integration and support future cross-market investment opportunities, such as exchange-traded funds (ETFs).
“The launch of this index is an important milestone, boosting the visibility of Malaysian public-listed companies among regional investors and showcasing the diversity of our sectors,” Fad’l added.
The index features 30 Malaysian blue-chip companies and 30 Hong Kong Southbound-eligible large-cap firms. Malaysian constituents span key sectors, including consumer products and services (23%), financial services (20%), utilities (13%), and telecommunications and media (13%).
The MoU outlines five strategic areas of cooperation, including streamlining dual listing pathways, co-developing market-driven indexes, promoting ETFs, supporting syariah-compliant securities, and exploring carbon market initiatives.
Fad’l emphasized Malaysia’s strong domestic institutional investor base and leadership in the Islamic capital market, positioning Bursa Malaysia as a gateway for corporates and syariah-compliant investments to access regional and global capital, particularly within ASEAN.
HKEX CEO Bonnie Chan said, “Partnering with Bursa Malaysia strengthens connectivity between our capital markets. Expanding engagement with the region is a key strategic priority as we aim to build a multi-asset product ecosystem and attract global liquidity to Asia amid heightened macroeconomic uncertainties.”
