HKEX has welcomed the listing of four exchange traded funds (ETFs) that track three of its cross-market indices.

The exchange launched these indices earlier this year to build stronger links with regional and international markets.

They are the HKEX Bursa Malaysia Large Cap Index, the HKEX KRX Semiconductor Index and the HKEX Tech & US Tech 100 Index.

HKEX developed the Malaysia and semiconductor indices as co-branded benchmarks with Bursa Malaysia and Korea Exchange (KRX).

Each index puts about 60 percent of its weight in Hong Kong-listed securities. The other 40 percent goes to overseas securities.

According to HKEX, this mix is designed to help funds that track the indices qualify for Southbound Stock Connect.

The scheme lets investors in Mainland China trade eligible Hong Kong-listed securities.

Two of the new funds track the semiconductor index. Bosera Asset Management (International) and Huatai-PCG Asset Management manage them.

Trading in the Bosera fund began on 24 September, while the other three funds started on 28 September.

GF International Investment Management’s fund tracks the HKEX Tech & US Tech 100 Index.

Unlike the other three, it trades in Hong Kong dollars, renminbi and US dollars.

Da Cheng International Asset Management offers the fourth fund, which follows the Malaysia index. Bursa Malaysia said this index holds 30 listed firms from each market.

“By bringing together leading semiconductor-related companies listed in South Korea and Hong Kong, the index offers a new way to access Asia’s semiconductor ecosystem,”

said Buyeon Yi, President of the Future Strategy Division at KRX.

“The growing number of products linked to HKEX-branded indices reflects the momentum of our index business,”

said Bonnie Y Chan, Chief Executive Officer of HKEX.

Featured image: Edited by Fintech News Hong Kong, based on image by DC Studio via Magnific.