The Securities Commission Malaysia (SC) and the Securities and Futures Commission of Hong Kong (SFC) have on Thursday signed a memorandum of understanding (MoU) on the mutual recognition and cross listing of covered funds, particularly exchange-traded funds (ETFs) and real estate investment trusts (REITs).
This landmark MoU will also strengthen regulatory cooperation to facilitate a simplified dual Initial Public Offering (IPO) listing framework between the two jurisdictions, SC said in a statement.
This MoU is expected to broaden investment opportunities for issuers and investors, expand access to capital and deepen cross-border participation in both markets.
The initiative supports the Capital Market Masterplan 2026–2030 (CMP)’s aspiration to position Malaysia as a Gateway to Regional Opportunities through stronger regional connectivity and enhanced cross-border investment flows.
At the same time, it complements Hong Kong’s role as an international financial center and gateway to Mainland China.
SC Chairman Mohammad Faiz Azmi said the MoU marks a significant milestone in strengthening capital market connectivity between Malaysia and Hong Kong.
According to him, 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.
“By supporting more cross-border listings and product availability, it creates new opportunities for investors and intermediaries in both jurisdictions, while deepening financial linkages and investment activity between Malaysia and Hong Kong,” he added.
Meanwhile, the SFC’s Chairman Kelvin Wong said that for decades, Hong Kong and Malaysian capital markets have benefitted from a productive regulatory partnership anchored in mutual trust and a firm commitment to evolving with market needs.
“Our markets are well placed to complement each other as vital financial gateways connecting global capital respectively with the Chinese Mainland and Southeast Asia,
“We will continue to strengthen our partnership to drive shared prosperity,” he added.
To facilitate the cross-listings of equity securities, the Stock Exchange of Hong Kong Limited has added Bursa Malaysia Securities Berhad (Bursa Securities) to the list of Recognised Stock Exchange (RSE).
The RSE status enables public limited companies listed on Bursa Securities to apply for a secondary listing in Hong Kong.
The simplified dual IPO listing framework allows issuers seeking simultaneous primary and secondary listing to use a single set of submission documents, including the prospectus.
Under the MoU, the range of products eligible under the mutual recognition of funds are expanded to include ETFs, including futures-based ETFs, leveraged and inverse ETFs and commodity ETFs.
The mutual recognition of funds is also extended to facilitate the cross listing of REITs in each jurisdiction. Under the mutual recognition of funds framework, ETFs and listed REITs approved in Malaysia or Hong Kong may be offered to investors in the corresponding jurisdiction through a secondary listing on the host exchange, expanding investors’ access to a broader range of regulated investment products and cross-border investment opportunities.
Recognizing the need for regulatory cooperation to support the implementation of the SC–SFC MoU, the SC has also entered into a separate MoU with Hong Kong’s Accounting and Financial Reporting Council (AFRC).
The arrangement facilitates information sharing, supervisory assistance and coordination on financial reporting compliance and audit oversight matters.
This MoU will effectively facilitate the SC and AFRC to address cross-border issues as well as strengthen investor protection and confidence in both markets, said the statement.