Malaysian and Hong Kong securities regulators have signed a pact for mutual recognition and cross-listing of exchange-traded funds and real estate investment trusts.
The deal also includes regulatory cooperation to facilitate a simplified framework for dual listings of initial public offerings.
The Securities Commission Malaysia (SC) and Securities and Futures Commission of Hong Kong (SFC) announced the signing of their memorandum of understanding in a joint statement on July 23.
Mohammad Faiz Azmi, chairman of the SC, describes the pact as a “significant milestone” that establishes a “practical framework” to bolster capital market connectivity between Malaysia and Hong Kong.
“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 says.
According to Kelvin Wong, chairman of the SFC, both capital markets have benefitted from a “productive regulatory partnership anchored in mutual trust and a firm commitment to evolving market needs” and they are “well placed to complement each other as vital financial gateways” linking global capital with China and Southeast Asia.
