Bursa Malaysia and Shenzhen Stock Exchange Launch Joint Promotion of Indices to Enhance Visibility and Profile of the Malaysian and Chinese Markets
KUALA LUMPUR, Malaysia, Dec. 14, 2020 /PRNewswire/ -- Bursa Malaysia and the Shenzhen Stock Exchange ("SZSE") today have started displaying selected mutual benchmark index constituents of its respective markets on both the exchanges' websites. This index promotion forms part of the cross-border collaboration initiative between the two countries.
On Bursa Malaysia's website are SZSE's flagship indices which are the Shenzhen Component Index, Shenzhen 100 Index and the ChiNext Index. These flagship indices will offer investors an opportunity to gain exposure to some of the leading and innovative companies from both the traditional and emerging industries in the Chinese Market.
The Malaysian indices that will be displayed on SZSE's website are the CNI-Bursa Malaysia 50 Index, Bursa Malaysia Health Care Index and the Bursa Malaysia Technology Index. The healthcare and technology sectors have been one of the best performing sectors in Malaysia for 2020. As of November 2020, the Healthcare Index has risen by 221%, while the Technology Index has increased by 72%.
The CNI-Bursa Malaysia 50 Index, a new index jointly developed by Bursa Malaysia and SZSE is the first cross-border co-branded index that will be displayed in the SZSE. The index will track the performance of the 50 largest companies listed on Bursa Malaysia based on the free-float weighted market capitalisation under the Shenzhen Securities Information Co., Ltd methodology. All three indices that are displayed on SZSE aims to enhance the visibility of Malaysian listed companies to Chinese Investors.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said, "Bursa Malaysia's strategic relationship with SZSE has taken a significant step forward offering a convenient platform and starting point for investors wanting to learn more about our market. It will provide a strong foundation for the development of new instruments for the tradeable index products. We look forward to the continuing relationship with SZSE to raise the profile of our markets to investors."
Mr Huiqi PEI, Vice Director of International Department of SZSE says, "SZSE stands firm in cross-border collaboration with fellow exchanges in the world, especially in ASEAN region. The successful launch of the index and joint promotion usher in a new page for the cooperation between both exchanges. We look forward to a closer relationship between us and more fruitful outcomes."