Kenanga Investment Bank introduces world’s first Hang Seng Biotech Index Structured Warrants to Malaysia

Kenanga Investment Bank Berhad (Kenanga Group/The Group) launches the world’s first structured warrants linked to the Hang Seng Biotech Index (HSBIO) under its flagship brand, NagaWarrants by Kenanga (NagaWarrants). The new warrants, HSBIO-CAA (0661AA) and HSBIO-HBA (0661BA), provide Malaysian investors with exposure to Hong Kong’s biotechnology and healthcare sector, one of Asia’s most compelling long-term growth themes driven by demographic shifts, rising healthcare demand and continued medical innovation.

The introduction of HSBIO-CAA and HSBIO-HBA marks another significant milestone in structured products innovation, making HSBIO accessible through a listed structured warrant format for the first time, while further expanding NagaWarrants’ range of Hang Seng-linked offerings, which includes products linked to the Hang Seng Index (“HSI”), Hang Seng China Enterprises Index (“HSCEI”) and Hang Seng TECH Index (“HSTECH”).

HSBIO tracks 30 of the largest biotechnology and healthcare companies listed in Hong Kong. In 2025, the index gained 64.5%, significantly outperforming the HSI, HSCEI and HSTECH. During the year, the index rose by more than 80% at its peak, reflecting rising investor interest in China’s rapidly evolving biotechnology sector.

The growing appeal of the index is also reflected in its expanding ecosystem, which includes listed futures contracts and exchange-traded funds (ETFs) with more than HKD11 billion in assets under management. Against this backdrop, HSBIO-CAA and HSBIO-HBA provide investors with an additional avenue to gain exposure to this increasingly relevant segment through a listed structured warrant.

“Being the first to introduce HSBIO-linked structured warrants reflects our commitment to staying at the forefront of product innovation. Through NagaWarrants, we continuously seek to identify emerging opportunities and translate them into accessible investment solutions that help Malaysian investors participate in global market trends. This latest launch underscores our focus on delivering differentiated products that broaden investor choice and provide access to a wider range of market opportunities beyond traditional benchmarks,” said Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad.

“With approximately 53% of the average daily trading volume and 51% of the average daily trading value of all HSI structured warrants traded on Bursa Malaysia in 2025, we have a strong understanding of the trends and themes that resonate with investors. We are seeing growing interest in targeted exposures beyond broad market benchmarks, with biotechnology emerging as one of Asia’s most dynamic growth sectors. HSBIO structured warrants provide investors with a familiar way to gain exposure to this evolving theme and mark the first in a series of initiatives to expand the range of products and investment opportunities available to our clients,” added Philip Lim Kuok Wei, Head of Equity Markets and Group Head of Equity Derivatives of Kenanga Investment Bank Berhad.

The addition of HSBIO-CAA and HSBIO-HBA broadens the range of Hong Kong market exposures available through NagaWarrants, complementing existing offerings linked to the HSI, HSCEI and HSTECH. The Group’s efforts in product innovation were also recently recognised internationally with the Best Warrants Issuer Malaysia 2026 award from Global Banking and Finance Review.