SFC and Securities Commission Malaysia sign MoU for mutual recognition of funds expansion and simplified dual listing framework

The Securities and Futures Commission and the Securities Commission Malaysia signed a Memorandum of Understanding to strengthen cooperation and information exchange to facilitate an expanded mutual recognition of funds (MRF) scheme and a simplified dual initial public offering listing framework.

Under the MOU, the eligible product scope of MRF is expanded to include non-Islamic exchange traded funds and leveraged and inverse products, as well as real estate investment trusts.

A simplified framework is also established for dual IPO listings between the two markets, as Bursa Malaysia has been added to the Stock Exchange of Hong Kong's recognised stock exchange list.

“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," said SFC’s Chairman Kelvin Wong Tin-yau.

The two markets are well placed to complement each other as vital financial gateways connecting global capital respectively with the Chinese Mainland and Southeast Asia and will continue to strengthen the partnership to drive shared prosperity, Wong added.

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, said Dato' Mohammad Faiz Azmi, Chairman of the Securities Commission Malaysia.

"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,” he added.

SFC Chief Executive Julia Leung Fung-yee said the MoU underscores the shared commitment to promote market development and diversification in Asia through enhanced connectivity, robust regulatory standards and strong investor protection.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓