The Securities and Futures Commission of Hong Kong signs a Memorandum of Understanding with Malaysia to expand mutual recognition of funds and simplify the framework for dual listings.

On July 23rd, the Securities and Futures Commission of Hong Kong and the Securities Commission Malaysia signed a memorandum of understanding to enhance cooperation and information exchange, expand the mutual recognition of funds arrangement, and simplify the dual primary listing framework. The memorandum expands the range of eligible investment products under the mutual recognition of funds arrangement to include non-Islamic exchange-traded funds, leverage and inverse products (L&I), and Real Estate Investment Trusts (REITs). The Chairman of the Securities and Futures Commission of Hong Kong, Carlson Tong, stated that the capital markets of Hong Kong and Malaysia have been built on a foundation of deep mutual trust and a strong commitment to meeting market needs. The two sides have maintained effective and pragmatic regulatory cooperation, jointly creating a good situation. Both markets serve as key financial hubs connecting global capital to mainland China and Southeast Asia, complementing each other and will continue to strengthen this partnership to promote mutual prosperity. The Chief Executive Officer of the Securities and Futures Commission of Hong Kong, Ashley Alder, stated that this memorandum of understanding marks an important step in regulatory cooperation with Malaysia, helping to broaden cross-border investment channels and choices for investors in both markets. The memorandum also demonstrates a strong commitment to promoting the development of Asian markets and diversifying through enhanced connectivity, robust regulatory standards, and solid investor protection. The Chairman of the Securities Commission Malaysia, Dato Mohammad Faiz Azmi, noted that the memorandum of understanding is a significant milestone in strengthening the ties between Malaysia and Hong Kong capital markets. He emphasized that the memorandum establishes a practical framework that will facilitate more cross-border investment, expand participation in both capital markets, and enrich the investment opportunities for issuers and investors in both jurisdictions. The Securities and Futures Commission of Hong Kong stated that further details on the mutual recognition of funds arrangement can be found in a circular issued today by the Securities and Futures Commission of Hong Kong and the "Guidelines for the Offer, Promotion, and Distribution of Overseas Funds" by the Securities Commission Malaysia. Additionally, in order to facilitate the dual listing of equity securities, the Hong Kong Stock Exchange (0388) has now included the Malaysia Stock Exchange in its list of recognized stock exchanges.