SFC and Securities Commission Malaysia sign MoU to expand mutual recognition of funds and facilitate simplified dual IPO listing framework

On July 23, 2026, the Securities and Futures Commission ("SFC") and the Securities Commission Malaysia ("SC") executed a Memorandum of Understanding ("MoU") in Kuala Lumpur to enhance regulatory cooperation and information exchange. This agreement facilitates an expanded Mutual Recognition of Funds ("MRF") scheme and a simplified dual Initial Public Offering ("IPO") listing framework, representing a significant advancement in Hong Kong-Malaysia capital market connectivity. The signing was witnessed by high-level officials including The Honourable Christopher Hui, Secretary for Financial Services and the Treasury of the HKSAR Government, Tan Sri Johan Mahmood Merican, Secretary General of Treasury, Ministry of Finance Malaysia, Datin Paduka Azalina Adham, SC Managing Director, and Dr Kelvin Wong, the SFC’s Chairman.

Industry Representation and Strategic Visi

A delegation comprising 33 Hong Kong industry leaders, including chairpersons of the Hong Kong Investment Funds Association and the Chinese Asset Management Association of Hong Kong, attended the event. These asset managers represent over 80% of the Hong Kong exchange traded funds and leveraged and inverse products market capitalization. Dr Kelvin Wong emphasized that decades of productive regulatory partnership, anchored in mutual trust, have positioned both markets as vital financial gateways connecting global capital with the Chinese Mainland and Southeast Asia. He affirmed the commitment to continue strengthening this partnership to drive shared prosperity.

Regulatory Framework and Market Connectivi

Ms Julia Leung, SFC CEO, stated that the MoU broadens cross-border investment channels and underscores shared commitments to market development, robust regulatory standards, and investor protection. Dato’ Mohammad Faiz Azmi, SC Chairman, noted the framework facilitates greater cross-border investment and deepens financial linkages. To support equity securities cross-listings, The Stock Exchange of Hong Kong Limited added Bursa Malaysia Securities Berhad to the list of Recognised Stock Exchanges.

Regulatory Context and Product Sco

This MoU serves as an updated framework following the November 9, 2009 Declaration on Mutual Co-operation on Development of Islamic Capital Market. The eligible product scope is expanded to include non-Islamic exchange traded funds, leveraged and inverse products, and real estate investment trusts. Specific details are provided in the SFC circulars issued today: "Mutual Recognition of Funds ("MRF") between Malaysia and Hong Kong" and "Cross-listings of Malaysian Real Estate Investment Trusts in Hong Kong". The SC’s Guidelines for the Offering, Marketing and Distribution of Foreign Funds have been updated to include specific requirements under paragraph 3.01(a), Appendix I – Part 1, and Appendix 5. Bursa Malaysia Securities Berhad is a stock exchange established under the Securities Commission Malaysia Act 1993 and supervised by the Securities Commission Malaysia.