The Hong Kong Stock Exchange (HKEX) is set to launch Asia's first index specifically designed for cryptocurrencies next month, a groundbreaking initiative that signifies the Hong Kong stock market's embrace of cryptocurrencies, bringing them into the mainstream financial market.
In this regard, market analysts generally believe that this is not only a significant step for Hong Kong as an Asian financial center but also an important milestone in global financial innovation.
Hong Kong HKEX, by integrating cryptocurrency into the stock market, will provide investors with more investment choices and may lead to new market trends.
HKEX embraces cryptocurrency
The Hong Kong Stock Exchange (HKEX) announced today that it will launch a new index series specifically targeting the cryptocurrency market on November 15, covering cryptocurrencies Bitcoin and Ethereum.
In this statement, HKEX proudly declared that the Asian stock market virtual asset index series will be the region's first pioneering cryptocurrency index that meets European Union (EU) standards, marking Hong Kong's continued leadership in financial innovation.
This move by HKEX not only showcases its open attitude towards emerging asset classes but also strengthens Hong Kong's position as a top financial center, especially in incorporating cryptocurrency investment into the broader stock market.
In response, HKEX Group CEO Charles Li expressed that HKEX is very pleased to launch this new index series, emphasizing that this index can meet the growing demand for this emerging asset class in the region.
Charles Li further explained that the HKEX virtual asset index series aims to provide a transparent and reliable real-time benchmark to help investors make more informed investment decisions.
He also added, 'We hope to support the healthy development of the virtual asset ecosystem through this index series and further consolidate Hong Kong's position as an international financial center.' The launch of this index series also signifies a solid step for HKEX in promoting innovation in the financial market and expanding its influence in the cryptocurrency field.
Mechanism of the new index
The upcoming virtual asset index series from HKEX will provide real-time reference indices for Bitcoin and Ethereum, based on the weighted average price of the spot trading volume of these two cryptocurrencies over the past 24 hours. This means that the index will comprehensively consider data from major exchanges worldwide to calculate the total market capitalization of Bitcoin and Ethereum, and use this as a basis to determine the latest price.
HKEX further pointed out that the index will reflect the dollar price of Bitcoin and Ethereum in real-time and will be continuously tracked and updated. Specifically, the index will be updated regularly at 4 PM Hong Kong time each day to ensure investors can access the latest market data.
Additionally, the new index will adjust Asian trading benchmarks to align with global benchmarks, providing a unified global reference standard. Charles Li emphasized that by incorporating cryptocurrencies into the index series and providing more sophisticated tools to measure market value, the HKEX virtual asset index series not only enhances Hong Kong's position as a major innovator in the financial sector but also further consolidates Hong Kong's role as an international financial center.
New index follows EU benchmark regulations
HKEX also announced that its upcoming virtual asset index series will be the first asset index in Hong Kong to comply with EU Benchmark Regulation (BMR). This initiative marks an important step for HKEX in adhering to international financial regulatory standards.
EU benchmark regulation is a series of reforms implemented by the EU to enhance the transparency and security of financial markets. These measures stem from reflections on the 2008 global financial crisis and aim to strengthen oversight of benchmark index administrators to ensure the reliability and integrity of the benchmark indices they use.
By complying with EU benchmark regulations, HKEX's virtual asset index series will meet stringent regulatory requirements, which not only enhances the index's international recognition but also provides global investors with a safer and more credible investment reference. This step also demonstrates HKEX's efforts and commitment to elevate its financial products and services to international standards.
Conclusion:
As the Hong Kong Stock Exchange is about to launch Asia's first cryptocurrency index that meets EU standards, we witness another significant step for Hong Kong on the global financial stage. This innovation not only provides investors with new investment tools and risk management means but also paves the way for the maturity and internationalization of the cryptocurrency market.
In summary, this initiative by HKEX may become a model for global financial regulation and cooperation, driving the entire industry towards a more standardized and transparent direction. As global financial markets increasingly accept cryptocurrencies, this pioneering step by Hong Kong will undoubtedly have a profound impact on the global financial landscape.
