SC, Hong Kong SFC Ink MoU To Facilitate Dual IPO Listings, Cross-border Investments
KUALA LUMPUR, July 23 (Bernama) -- The Securities Commission Malaysia (SC) and the Securities and Futures Commission of Hong Kong (SFC) today signed a memorandum of understanding (MoU) to establish a practical framework to facilitate dual initial public offering (IPO) listings, including primary and secondary listings, mutual recognition of investment funds, and expanded cross-border investment opportunities.
SC executive chairman Datuk Mohammad Faiz Azmi said the MoU will also provide investors in both jurisdictions with a broader range of investment opportunities.
"For a start, the Hong Kong Stock Exchange hosts more than 2,900 listed companies, exchange-traded funds (ETFs) and real estate investment trusts (REITs), while Bursa Malaysia offers more than 1,300 listed companies, ETFs and REITs.
"Beyond enhancing investor diversification and product offerings, the MoU is also expected to encourage greater foreign portfolio investment flows between our capital markets," he said in his welcoming remarks at the signing ceremony here today.
Mohammad Faiz and SFC chief executive officer Julia Leung signed the MoU, witnessed by Finance Ministry Secretary-General Tan Sri Johan Mahmood Merican.
The partnership aligns with the regional aspirations of the country’s Capital Market Masterplan 2026-2030 to position Malaysia as a gateway to regional opportunities via stronger regional connectivity and cross-border investment flows.
At the same time, it also complements Hong Kong's role as an international financial centre and gateway to mainland China.
At the event, the Stock Exchange of Hong Kong Ltd (HKeX) added Bursa Malaysia as a Recognised Stock Exchange (RSE). This recognition builds on the MoU signed between HKeX and Bursa Malaysia Bhd earlier this year.
This enables public companies with a primary listing on Bursa Malaysia’s main market to apply for a secondary listing in Hong Kong.
Meanwhile, Johan said the ability to leverage Hong Kong’s capital market will help Malaysia achieve its economic ambition as more high-technology, high-growth and high-value companies come into play.
He said as Malaysia recognises Hong Kong as a leading financial centre, and with 30 Malaysian companies listed in Hong Kong, Malaysia is on track to drive its economic reform under the Economy MADANI framework.
He said Malaysia is also vying for deeper collaboration in terms of professional standards.
"We need to work comprehensively on how our regulatory landscape can leverage each other's strength to ensure that connectivity is not just at the money level but also deeper at the regulatory and standard level," Johan said.
On other issues, Johan said the government’s response to the West Asia crisis, including the targeted diesel subsidy and increased financing for affected SMEs, demonstrated its commitment to supporting the economy.
He said the measures, coordinated through the National Economic Action Council, will help sustain growth and maintain economic stability amid ongoing geopolitical uncertainties.
"The government is confident that the measures undertaken will continue to ensure the economy remains resilient.
"What is important is for the government to ensure supply security so that economic activities can continue without disruption," he told reporters when asked about the oil price benchmark in the upcoming Budget 2027.
-- BERNAMA