MALAYSIA and Hong Kong have strengthened their capital market ties with the signing of a landmark memorandum of understanding (MoU) that will expand cross-border investment opportunities, facilitate the mutual recognition and listing of investment funds, and simplify dual initial public offering (IPO) listings between the two jurisdictions.
The agreement, signed on Thursday by Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi and Hong Kong Securities and Futures Commission (SFC) chief executive officer Julia Leung, establishes a framework for the mutual recognition and cross-listing of covered funds, particularly exchange-traded funds (ETFs) and real estate investment trusts (REITs).
The MoU also provides the foundation for a simplified dual IPO listing framework, enabling companies seeking simultaneous primary and secondary listings in Malaysia and Hong Kong to submit a single set of listing documents, including a unified prospectus.
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 initiative supports Malaysia's Capital Market Masterplan 2026–2030, which aims to position the country as a gateway to regional investment opportunities by strengthening regional connectivity and encouraging greater cross-border capital flows. It also complements Hong Kong's position as an international financial centre and a gateway to mainland China.
Mohammad Faiz described the agreement as a significant milestone in enhancing financial connectivity between the two markets.
"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 the agreement would create fresh opportunities for investors, fund managers and market intermediaries while strengthening financial linkages and investment activity between Malaysia and Hong Kong.
SFC chairman Dr Kelvin Wong said both markets had benefited from decades of close regulatory cooperation founded on mutual trust and shared objectives.
"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 said.
As part of the broader collaboration, the Stock Exchange of Hong Kong has recognised Bursa Malaysia Securities Berhad as a Recognised Stock Exchange (RSE), allowing companies listed on Bursa Malaysia to apply for secondary listings in Hong Kong.
The mutual recognition framework has also been expanded beyond conventional investment products to include a broader range of ETFs, including futures-based ETFs, leveraged and inverse ETFs, as well as commodity ETFs.
In addition, listed REITs from either jurisdiction will be eligible for secondary listings in the partner market, giving investors access to a wider range of regulated investment products and diversified cross-border investment opportunities.
To support the implementation of the initiative, the SC has separately signed an MoU with Hong Kong's Accounting and Financial Reporting Council (AFRC) to strengthen cooperation on financial reporting compliance, audit oversight, supervisory assistance and information sharing.
The arrangement is intended to enhance regulatory coordination in addressing cross-border issues while reinforcing investor protection and confidence in both markets.
The enhanced mutual recognition framework for investment funds takes effect immediately, while the simplified dual IPO listing framework is scheduled to come into force in September 2026. - July 23, 2026
