The Securities Commission Malaysia (SC), the country’s capital markets regulator, has agreed a Memorandum of Understanding with Hong Kong’s Securities and Futures Commission (SFC) covering mutual recognition and cross listing of funds, with a focus on exchange-traded funds and real estate investment trusts.
Beyond fund recognition, the deal deepens regulatory cooperation to enable a simplified dual Initial Public Offering framework spanning both markets, allowing issuers pursuing simultaneous primary and secondary listings to file a single set of submission documents, including the prospectus.
The agreement was signed at the SC by chairman Dato’ Mohammad Faiz Azmi and SFC CEO Julia Leung. Witnesses included Ministry of Finance secretary-general of Treasury Tan Sri Johan Mahmood Merican, SC managing director Datin Paduka Azalina Adham, HKSAR secretary for Financial Services and the Treasury Christopher Hui and SFC chairman Dr Kelvin Wong.
To support equity cross-listings, the Stock Exchange of Hong Kong Limited has designated Bursa Malaysia Securities Berhad a Recognised Stock Exchange, a status that permits public limited companies quoted on Bursa Securities to seek a secondary listing in Hong Kong.
The mutual recognition regime now takes in a wider product set, covering futures-based, leveraged and inverse, and commodity ETFs, and has been extended to allow REITs to cross-list in each jurisdiction. Approved ETFs and listed REITs from either market can be offered to investors in the other via a secondary listing on the host exchange, widening access to regulated products.
The initiative aligns with Malaysia’s Capital Market Masterplan 2026-2030, which seeks to position the country as a gateway to regional opportunities, while reinforcing Hong Kong’s standing as an international financial centre connecting to Mainland China. Separately, the SC has struck an additional MoU with Hong Kong’s Accounting and Financial Reporting Council to enable information sharing, supervisory assistance and coordination on financial reporting compliance and audit oversight, bolstering investor protection across both markets.
SC chairman Dato’ Faiz 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.”
Stay ahead of the threats and deals shaping the industry. Join FinTech leaders who rely on FinTech Global for early insight and strategic intelligence and subscribe to the FinTech Global newsletter today.
Copyright © 2026 FinTech Global
