Securities Commission Malaysia and Hong Kong Securities and Futures Commission sign MoU expanding ETF and REIT mutual recognition and enabling simplified dual IPO listings

Securities Commission Malaysia has signed a memorandum of understanding with the Hong Kong Securities and Futures Commission to broaden mutual recognition and cross-listing of covered funds, with a particular focus on exchange-traded funds and real estate investment trusts, and to support a simplified framework for dual initial public offering listings between the two markets. The arrangement creates a cross-border regulatory framework under which eligible products approved in one jurisdiction can be offered to investors in the other through a secondary listing on the host exchange. The fund regime is being expanded to cover ETFs including futures-based ETFs, leveraged and inverse ETFs, and commodity ETFs, while mutual recognition is also being extended to facilitate REIT cross-listings in both jurisdictions. In parallel, the Stock Exchange of Hong Kong has added Bursa Malaysia Securities to its list of Recognised Stock Exchanges, allowing public limited companies listed on Bursa to apply for a secondary listing in Hong Kong. The simplified dual IPO listing framework will allow issuers pursuing simultaneous primary and secondary listings to use a single set of submission documents, including the prospectus. The new mutual recognition of funds policies take effect immediately through updated Securities Commission Malaysia guidance and two Hong Kong Securities and Futures Commission circulars. The dual IPO listing framework is scheduled to take effect in September 2026. Securities Commission Malaysia also signed a separate memorandum with Hong Kong's Accounting and Financial Reporting Council to support information sharing, supervisory assistance and coordination on financial reporting compliance and audit oversight in cross-border cases.