Hang Seng Biotech Index secures world-first warrant

Kenanga will launch Malaysia’s first warrant linked to the index.

Hang Seng Indexes Company has licensed the Hang Seng Biotech Index to Malaysia’s Kenanga Investment Bank Berhad for the world’s first warrant linked to the index.

The cross-market initiative is amongst more than 30 commercial outcome showcases at the 11th Belt and Road Summit, co-organised by the Government of the Hong Kong Special Administrative Region (SAR) and the Hong Kong Trade Development Council.

The licensing expands access to Hong Kong-listed biotechnology exposure through Malaysia’s capital market and strengthens cross-border capital market links between Hong Kong and Malaysia.

The Hang Seng Biotech Index tracks the 30 largest biotechnology companies listed in Hong Kong and is eligible for trading via Southbound Stock Connect.

The index rose 98.5% over the past two years as of 31 August.

Its product ecosystem was expanded last year with the launch of futures linked to the benchmark. On 20 August, Hang Seng Biotech Index Futures recorded a new daily volume high of 1,414 contracts.

“As Malaysia advances its New Industrial Master Plan 2030 and strengthens its high-value healthcare and biotechnology ecosystem, this partnership directly aligns with our national aspiration to expand innovative, cross-border financial products,” said Muzambli Markam, Consul General of Malaysia in Hong Kong SAR and Macao SAR.

Gilbert Lee, Executive Chairman of Hang Seng Indexes Company, said biotechnology is a “strategic pillar” for China’s 15th Five-Year Plan and a key focus of Hong Kong’s I&T strategy.

“The launch of the world’s first warrant linked to the Hang Seng Biotech Index provides global investors with a broader range of index-linked tools. It also advances our ambition to develop the Hang Seng Biotech Index into another flagship benchmark,” Lee added.

Hang Seng Indexes Company said it will continue to expand its overseas partnerships and the international reach of its indexes.