HKEX Welcomes Launch of Four ETFs Tracking Cross-Market Indices

Hong Kong Exchanges and Clearing Limited (HKEX) has welcomed the launch of four exchange traded funds (ETFs) tracking three of its cross-market indices this month.

The newly listed ETFs track the HKEX Bursa Malaysia Large Cap Index, the HKEX KRX Semiconductor Index, and the HKEX Tech & US Tech 100 Index. These are the first investment products based on the three benchmarks, which were launched earlier this year to strengthen connectivity between Hong Kong and key regional and international markets. The first two indices were introduced as part of co-branded partnerships with Bursa Malaysia Berhad and Korea Exchange, respectively.

The three cross-market benchmarks use a 60/40 weighting design, with approximately 60% allocated to Hong Kong-listed securities and 40% to overseas securities. The design is intended to support the eligibility of ETFs tracking the indices for potential inclusion in Southbound Stock Connect, supporting portfolio diversification, cross-market capital flows and the development of innovative index-based products for investors in the Chinese Mainland and internationally.