Korea Exchange (KRX) said on the 13th that it developed the joint index "HKEX KRX Semiconductor Index," composed of semiconductor corporations in Korea and Hong Kong, with Hong Kong Exchanges and Clearing (HKEX).
The index is designed to allow global investors to invest simultaneously in the leading semiconductor corporations of both countries.
The index consists of a total of 30 constituents, with 15 representative semiconductor corporations each from Korea and Hong Kong. The weights are set at 60% for Hong Kong corporations and 40% for Korean corporations, and on the Korean side, the KRX Semiconductor Top 15 constituents are included.
In particular, to meet the "ETF Connect" requirement to maintain a Hong Kong stock weight of at least 60%, the weight of Hong Kong constituents in the index will be managed above a certain level.
The exchange expects that if an exchange-traded fund (ETF) based on the index is listed on the Hong Kong market, overseas investors' access to the Korean stock market will improve further.
Korea Exchange (KRX) plans to actively support the development, listing, and activation of trading of ETFs based on the joint index in cooperation with Hong Kong Exchanges and Clearing and local asset managers.