The Securities Commission Malaysia (SC) and the Securities and Futures Commission of Hong Kong (SFC) have signed a MoU to establish a mutual recognition framework for funds and a simplified dual IPO framework.
The agreement aims to broaden investment opportunities, expand access to capital, and deepen cross-border market participation between both jurisdictions.
Expanding cross-border fund access
Under the MoU, the mutual recognition of funds scheme now covers futures-based ETFs, leveraged and inverse ETFs, commodity ETFs, and listed REITs.
Eligible ETFs and listed REITs approved in either market may be offered to investors in the other jurisdiction. They can do so through a secondary listing on the respective host exchange.
Separately, the Stock Exchange of Hong Kong Limited has added Bursa Malaysia Securities Berhad to its list of Recognised Stock Exchanges. This allows public limited companies listed on Bursa Malaysia to apply for a secondary listing in Hong Kong.
This status allows public limited companies listed on Bursa Malaysia to apply for a secondary listing in Hong Kong.
Simplified dual IPO framework coming in September 2026
The SC and SFC agreement establishes a simplified dual IPO framework for issuers seeking simultaneous primary and secondary listings.
Under this framework, companies will be able to use a single set of submission documents, including the prospectus, for submissions to both jurisdictions.
Both regulators have issued regulatory guidelines covering mutual recognition of funds and REIT cross-listing arrangements, which take effect immediately. The simplified dual IPO framework will take effect in September 2026.
Regulatory cooperation and governance
“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,”
said Dato’ Mohammad Faiz Azmi, Chairman of the Securities Commission Malaysia.
“Our markets are well placed to complement each other as vital financial gateways connecting global capital respectively with the Chinese Mainland and Southeast Asia,”
said Dr Kelvin Wong, Chairman of the SFC of Hong Kong.
To support implementation, the SC also entered into a separate MoU with Hong Kong’s Accounting and Financial Reporting Council (AFRC).
The agreement establishes coordination on financial reporting compliance, audit oversight, and cross-border information sharing.
The initiative supports Malaysia’s Capital Market Masterplan 2026-2030, which aims to strengthen regional connectivity and position the country as a gateway to regional opportunities.
Featured image credit: Edited by Fintech News Hong Kong, based on image by SFC
