Full Breakdown
Hong Kong and Malaysia Stock Exchanges Collaborate on ETFs and Islamic Finance
4/22/2026, 9:23:11 PM
Collaborative Efforts Between Exchanges
Hong Kong Exchanges and Clearing (HKEX) and Boursa Malaysia are initiating a series of collaborations aimed at enhancing financial ties between Hong Kong and Malaysia. This partnership was announced during a media briefing held in Hong Kong, coinciding with the 40th Asian and Oceanian Stock Exchanges Federation (AOSEF) General Assembly. HKEX CEO Bonnie Chan Yiting and Boursa Malaysia CEO Dato Fad’l Mohamed outlined plans that include dual listings, exchange-traded funds (ETFs), and Islamic finance initiatives.
Launch of Cross-Border ETF
A significant aspect of this collaboration is the introduction of an ETF based on the HKEX Bursa Malaysia Large Cap Index, which comprises 62% Hong Kong stocks and 38% Malaysian shares. Da Cheng International Asset Management has been granted a license to issue this ETF, which will be launched in Hong Kong pending regulatory approval. This product aims to meet the increasing demand from investors for cross-border investment opportunities and diversified regional exposure. Chan emphasized that this initiative illustrates how collaboration between exchanges can foster market innovation.
Dual Listings and Market Integration
The partnership also opens the door for dual listings, with Boursa Malaysia expressing interest in welcoming listings from Hong Kong and mainland Chinese firms. Currently, approximately 30 Malaysian companies are listed on the HKEX, representing nearly one-third of the 103 Southeast Asian issuers in Hong Kong. The largest of these is Guoco Group, part of the Hong Leong Group, a prominent Malaysian conglomerate.
Official Statements & Responses
Bonnie Chan stated, “This development underscores the growing demand from investors for cross-border products and diversified regional exposure.” Dato Fad’l Mohamed expressed optimism about the potential for dual listings, indicating that Malaysia is open to further collaboration with Hong Kong.
Criticism & Opposition
While the collaboration has been generally well-received, some market analysts have raised concerns about the regulatory challenges that may arise from cross-border listings and the complexities of integrating different financial systems. Critics argue that these issues could hinder the effectiveness of the proposed initiatives.
What's Next
As the HKEX and Boursa Malaysia move forward with their plans, the successful launch of the ETF will be a key milestone. Both exchanges are expected to continue discussions on dual listings and explore additional avenues for collaboration in Islamic finance, which could further strengthen their financial ties.
This partnership represents a strategic effort to enhance market connectivity between Hong Kong and Malaysia, potentially benefiting investors and firms in both regions.
