Qualampur: Global investors are rapidly turning into China and Hong Kong markets to offset the impact of American tariffs as these Asia-centered markets offer more attractive investment opportunities.
The Cannang Investment Bank BHD chief of Equity Markets and Group Head of Derivatives Philip Lim said that most of the investors are eager to reach the Chinese market, and Major China Enterprises Index (CEI), which is closely connected to the Hong Seng Index (HSI) in Hong Kong, plays an important role in this strategy.
He said that the technology sector, in particular, highlights a deviation among the markets, which has most part of the current technical activity centered in the United States.
“However, investors now want to participate in Hong Kong’s technical sector and the wider East Asian market’s dynamic ecosystem, recognizing its growing relevance and capacity,” he told reporters today after the launch of the structures (HSCEI) structured warrant.
Lim said that Hong Kong, along with recent expansion, also plans to detect opportunities in other industries and fields, directed by the customer’s demand and data-powered insight from the machine learning system.
“Kenanga is committed to introducing relevant products in the market, ensuring that the offerings are aligned with industry trends and customer interests,” he said.
Kenanga launched HSCEI structured warrant HSCEI-CAA and HSCE-HBA, as well as SENG Tech Index structured warrant Hstech-C30 and Hstech-H27 under its major brand, Nagawarrants.
After the introduction of HSI structured warrant HSI-CIW and HSI-HMO in launch 2021, Kenanga marks a strategic expansion of the East Asia Footprint of Kenanga.
Bursa with HSCEI and Hstech now listed in Malaysia, domestic investors will gain variety until two most influential indices in Hong Kong, providing new opportunities to tap in China’s financial and technology sectors.
HSCEI tracks the heavyweight mainland listed in Hong Kong, which includes financial and infrastructure giants such as industrial and commercial banks of China, China Construction Bank, Petrochina and Ping N Insurance. It acts as a major benchmark to track the performance of enterprises owned by China’s largest state.
Hstech occupies the development of China’s major technical innovators such as TENCENT, Meituan, Xiaomi and JD.com. With focusing its focus on rapidly developing technology and innovation, Hstech is ideal for traders, who are looking for volatility and development capacity with high risk hunger.
The presence of cannons in the structured warrant market is underlined by its 64% market share in HSI warrant.
In 2024, the structured warrant section on Barsa Malaysia recorded a turnover of RM30.3 billion, which was about 3.6% of the total market turnover of RM848.7 billion exchange.
The launch of HSCEI and Hstech structured warrants is expected to broaden market participation, diversify the product offerings and promote overall liquidity, especially familiar with HSI warrant among retail traders.
Moving forward, Lim said that, given the existing low participation rate between retail investors, both local and foreign markets are negatively affected.
This situation reveals a major difference, he said. Unlike the local market, structured warrants are not limited to the same market.
“If the Hong Kong market, for example, becomes more active, the products in demand may be released in the Malaysian market.
Further, Lim said that the cannon is committed to support investors through innovation, education and access to global markets.
