KUALA LUMPUR — The Securities Commission Malaysia (SC) and the Securities and Futures Commission (SFC) of Hong Kong have signed a landmark Memorandum of Understanding (MoU) to strengthen capital market connectivity, expand cross-border investment opportunities and facilitate simplified dual initial public offering (IPO) listings between the two jurisdictions.
The MoU, signed on Thursday by SC Chairman Datuk Mohammad Faiz Azmi and SFC Chief Executive Officer Julia Leung, covers the mutual recognition and cross-listing of investment products, particularly exchange-traded funds (ETFs) and real estate investment trusts (REITs), while enhancing regulatory cooperation to support dual IPO listings.
The signing ceremony was witnessed by Treasury Secretary-General Tan Sri Johan Mahmood Merican, SC Managing Director Datin Paduka Azalina Adham, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, and SFC Chairman Dr Kelvin Wong.
The SC said the agreement is expected to broaden investment opportunities for issuers and investors, improve access to capital, and deepen cross-border participation in the Malaysian and Hong Kong capital markets. It also supports the Capital Market Masterplan 2026–2030’s objective of positioning Malaysia as a gateway to regional opportunities through stronger regional connectivity and increased investment flows.
Mohammad Faiz described the MoU as a significant milestone in enhancing capital market connectivity between Malaysia and Hong Kong.
“This MoU establishes a practical framework to facilitate greater cross-border investment, broaden access to our respective capital markets and enhance investment opportunities for issuers and investors in both jurisdictions,” he said.
He added that greater cross-border listings and wider product availability would create new opportunities for investors and intermediaries while strengthening financial linkages between the two markets.
Meanwhile, Wong said the long-standing regulatory partnership between Hong Kong and Malaysia had enabled both markets to evolve in line with changing market needs, adding that the two jurisdictions would continue working together to drive shared prosperity.
As part of the initiative, the Stock Exchange of Hong Kong has recognised Bursa Malaysia Securities Berhad as a Recognised Stock Exchange, allowing companies listed on Bursa Malaysia to apply for secondary listings in Hong Kong. The simplified dual IPO listing framework will enable issuers pursuing simultaneous primary and secondary listings to submit a single set of listing documents, including the prospectus.
The MoU also expands the mutual recognition of funds framework to include a broader range of ETFs, such as futures-based, leveraged, inverse and commodity ETFs, while extending it to facilitate the cross-listing of REITs. This will enable approved ETFs and listed REITs in either jurisdiction to be offered through secondary listings on the host exchange, providing investors with access to a wider range of regulated investment products.
Separately, the SC signed another MoU with Hong Kong’s Accounting and Financial Reporting Council to strengthen regulatory cooperation in financial reporting compliance and audit oversight, aimed at enhancing investor protection and confidence in both markets.
The new policies governing the expanded mutual recognition of funds framework took effect immediately, while the simplified dual IPO listing framework is scheduled to come into force in September 2026.
