KUALA LUMPUR, 27 March 2026 – Bursa Malaysia Berhad and Hong Kong Exchanges and Clearing Limited (HKEX) have formalised a landmark collaboration to deepen regional capital market integration, unveiling a new co-branded index as the first step toward expanding cross-border investment opportunities.
The partnership was sealed through a Memorandum of Understanding (MoU), marking a significant move to enhance connectivity between Malaysia and Hong Kong, two key financial hubs in Asia.
Launch of HKEX Bursa Malaysia Large Cap Index
As the inaugural initiative under the collaboration, both exchanges introduced the HKEX Bursa Malaysia Large Cap Index, a benchmark comprising 60 leading companies, 30 listed on Bursa Malaysia and 30 listed on HKEX.
The index is designed to strengthen capital market linkages and serve as a foundation for future investment products, including Exchange Traded Funds (ETFs), offering investors diversified exposure across both markets.
Malaysian constituents span key economic sectors, including consumer products and services (23%), financial services (20%), utilities (13%), and telecommunications and media (13%), reflecting the breadth of Malaysia’s corporate landscape.
Five Pillars of Strategic Collaboration
Beyond the index launch, the MoU outlines five strategic areas of cooperation aimed at building a more integrated and investable regional ecosystem:
- Exploration of streamlined pathways for dual listings between Malaysia and Hong Kong
- Co-development of market-driven indices
- Enhanced access to and promotion of ETFs
- Development of Shariah-compliant securities across both markets
- Collaboration in emerging areas such as carbon markets
This multi-pronged approach signals a broader ambition to create seamless capital flows and expand product innovation across Asia.
Strengthening Malaysia’s Global Market Position
Bursa Malaysia Chief Executive Officer Dato’ Fad’l Mohamed emphasised that the collaboration aligns with efforts to internationalise Malaysia’s capital market and boost its global visibility.
He noted that Malaysia’s strong base of domestic institutional investors and leadership in Islamic capital markets position it as a strategic gateway connecting regional corporates with global capital.
“The launch of the HKEX Bursa Malaysia Large Cap Index marks an important milestone, enhancing the visibility of Malaysian PLCs among regional investors while showcasing the diversity of our market,” he said.
HKEX Expands Regional Footprint
HKEX Chief Executive Officer Bonnie Y Chan highlighted that the partnership supports Hong Kong’s strategy to deepen engagement with Southeast Asia, one of the fastest-growing regions globally.
“Malaysia offers strong opportunities across sectors such as innovation, consumer and resources, while Hong Kong provides unmatched access to international capital and connectivity with mainland China,” she said.
The collaboration is also part of HKEX’s broader ambition to build a multi-asset ecosystem that attracts global liquidity into Asia, particularly amid heightened macroeconomic uncertainty.
Implications for Asian Investors
For investors, the new index and broader collaboration signal a step forward in regional market integration, offering enhanced access to diversified investment opportunities across two major Asian exchanges.
The potential development of ETFs tracking the index could further improve liquidity and accessibility, while dual listings may provide companies with expanded fundraising channels.
Additionally, cooperation in Shariah-compliant securities could open new avenues for Islamic finance investors, particularly those seeking cross-border exposure.
Outlook: A New Phase of Regional Connectivity
The Bursa Malaysia, HKEX partnership reflects a growing trend toward greater collaboration among Asian exchanges, as markets seek to attract global capital and remain competitive in an increasingly interconnected financial landscape.
With the launch of the Large Cap Index as a starting point, further initiatives under the MoU could reshape how capital flows across the region, bringing Malaysia and Hong Kong closer within the global investment ecosystem.
