The Hong Kong Securities and Futures Commission and Securities Commission Malaysia have signed a memorandum of understanding to strengthen cooperation and information exchange for an expanded mutual recognition of funds scheme and a simplified framework for dual initial public offering listings between the two markets. The regulators also co-hosted industry roundtables on cross-listings of companies and investment products as the first engagement under the new arrangement, framing the MoU as a practical step to widen market access between Hong Kong and Malaysia. The MoU broadens the range of products eligible under mutual recognition beyond the earlier Islamic funds framework to include non-Islamic exchange traded funds, leveraged and inverse products, and real estate investment trusts. To support equity cross-listings, The Stock Exchange of Hong Kong Limited added Bursa Malaysia Securities Berhad to its list of Recognised Stock Exchanges. The Securities and Futures Commission issued two circulars covering the mutual recognition of funds framework and cross-listings of Malaysian REITs, while Securities Commission Malaysia updated its guidelines for the offering, marketing and distribution of foreign funds. The roundtables brought together senior executives from both exchanges, more than 120 Malaysian stakeholders and a 33-member Hong Kong delegation of asset managers, market makers and investment banks to discuss cross-listing opportunities and operational experience.

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