Da Cheng Launches ETF Linking Hong Kong and Malaysian Large Caps

Da Cheng International Asset Management has launched an ETF tracking an index of 60 large companies listed in Hong Kong and Malaysia, selecting 30 from each market. Hong Kong constituents must be eligible for Southbound Stock Connect. The benchmark allocates 62% to Hong Kong and 38% to Malaysia, with stocks weighted by free-float-adjusted market capitalisation and individual holdings capped at 12%. It rebalances quarterly and measures returns with net dividends reinvested. Jointly developed by HKEX Indices and Benchmarks and Bursa Malaysia, the index is calculated by Solactive. The ETF may use full replication or representative sampling to track the benchmark. Under sampling, it may invest in correlated index funds and derivatives, each below 30% of NAV. The strategy combines two equity markets in one portfolio while maintaining a larger allocation to Hong Kong.