According to Zhitong Finance APP, on September 28, Hong Kong Exchanges and Clearing Ltd (HKEX) announced that it welcomes the listing of four exchange-traded funds (ETFs) tracking three HKEX cross-market indices this month.
This move marks a significant milestone in the group's ongoing expansion of its index business and represents an important initiative in its commitment to product innovation and providing global investors with diversified investment opportunities.
The four newly listed ETFs track the HKEX Malaysia Exchange Large Cap Index, the HKEX Korea Exchange Semiconductor Index, and the HKEX Tech and US Tech 100 Index, respectively, and are the first investment products to track these three indices.
HKEX launched these three indices earlier this year with the aim of strengthening connectivity between Hong Kong and major international markets. The first two indices are co-branded indices launched in partnership with Bursa Malaysia and the Korea Exchange, respectively.
All three cross-market indices adopt a 60/40 weighting design, with approximately 60% allocated to Hong Kong-listed securities and 40% allocated to overseas securities, which will help ETFs tracking these indices become eligible for future inclusion in Stock Connect trading. Indices designed in this manner can also support market product innovation, support diversified investment allocation and cross-market capital flows for both mainland Chinese and international investors.
Bonnie Chan, Chief Executive Officer of HKEX Group, said she is delighted to welcome the first batch of ETFs tracking the HKEX cross-market index series. These products mark an important step in HKEX's collaboration with Asian and global exchanges and partners to enrich investment choices and connect Hong Kong with international markets. The three indices bring together investment opportunities across different markets and industries, meeting investors' growing demand for diversified allocation and reinforcing Hong Kong's role as a gateway connecting mainland China with the world.
Chan added that she is pleased to see HKEX's index business continue to develop steadily, with more products tracking its indices. HKEX will strive to promote product innovation, facilitate capital flows, and create opportunities for issuers, asset managers, and investors through the development of proprietary and co-branded indices across different asset classes, supporting the development of Hong Kong's diversified asset ecosystem.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, said he welcomes the launch of the ETF by Dacheng International tracking the HKEX Malaysia Exchange Large Cap Index, marking the official debut of the first investment product based on this co-branded benchmark index. The index brings together 30 representative listed companies each from Malaysia and Hong Kong, providing investors with a new channel to capture investment opportunities in both markets. This latest development also helps raise the visibility of Malaysian companies among investors in Hong Kong and mainland China, and further promotes broader cooperation between the two exchanges, strengthening regional market connectivity.
Lee Boo-yeon, Head of the Future Business Division at the Korea Exchange, said: "We are very pleased to welcome the listing of the ETF tracking the HKEX Korea Exchange Semiconductor Index. This index is the first co-branded index launched through cooperation between the Korea Exchange and HKEX. This demonstrates how the two exchanges can leverage their respective expertise in market operations and index development, promote cross-market cooperation, and support investors in regional asset allocation. The index brings together leading semiconductor-related companies listed in Korea and Hong Kong, providing investors with a new avenue to participate in Asia's semiconductor ecosystem."
The newly listed ETFs include: