The Securities Commission Malaysia (SC), the regulator overseeing Malaysia’s capital markets, has entered into a Memorandum of Understanding with Hong Kong’s Securities and Futures Commission (SFC) that establishes mutual recognition and cross listing of covered funds, notably exchange-traded funds and real estate investment trusts.
Beyond funds, the agreement deepens regulatory cooperation to support a streamlined dual Initial Public Offering framework connecting the two markets. Issuers pursuing simultaneous primary and secondary listings will be able to rely on one set of submission documents, including the prospectus, cutting duplication across jurisdictions.
The deal was formalised at the SC by its chairman Dato’ Mohammad Faiz Azmi and SFC CEO Julia Leung. Witnessing the ceremony were Malaysia’s Secretary-General of Treasury at the Ministry of Finance Tan Sri Johan Mahmood Merican, SC managing director Datin Paduka Azalina Adham, Hong Kong’s Secretary for Financial Services and the Treasury Christopher Hui and SFC chairman Dr Kelvin Wong.
To enable equity cross-listings, the Stock Exchange of Hong Kong Limited has recognised Bursa Malaysia Securities Berhad as a Recognised Stock Exchange, a status that permits public limited companies traded on Bursa Securities to seek a secondary listing in Hong Kong.
The scope of mutually recognised products now takes in futures-based, leveraged and inverse, and commodity ETFs, while the framework has also been broadened to cover REIT cross-listings. Funds approved in either jurisdiction can be offered to investors in the other via a secondary listing on the host exchange, giving investors entry to a wider pool of regulated products.
The arrangement advances the goals of Malaysia’s Capital Market Masterplan 2026-2030, which aims to establish the country as a Gateway to Regional Opportunities, and reinforces Hong Kong’s position as an international financial hub linking global capital with Mainland China.
Alongside the SFC pact, the SC has signed a separate MoU with Hong Kong’s Accounting and Financial Reporting Council covering information sharing, supervisory assistance and coordination on financial reporting compliance and audit oversight, a step intended to resolve cross-border issues and bolster investor protection in both markets.
SC chairman Dato’ Mohammad Faiz Azmi said, “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 added, “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.”
SFC chairman Dr Kelvin Wong said, “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.”
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