Hong Kong Securities Regulatory Commission and Malaysia Sign Memorandum of Understanding to Expand Mutual Fund Recognition and Simplify Dual Listing Framework

Zhitong Finance App learned that on July 23, the Hong Kong Securities Regulatory Commission and the Malaysian Securities Regulatory Commission signed a memorandum of understanding to strengthen cooperation and information exchange to expand mutual fund recognition arrangements and simplify the dual initial public offering framework. The memorandum expands the range of eligible investment products under mutual fund recognition arrangements, which have been extended to cover non-Islamic exchange-traded funds, leveraged and inverse products (L&I), and real estate investment trusts (REITs).

Chairman of the Hong Kong Securities Regulatory Commission, Wong Tin Yew said that over the years, the capital markets of Hong Kong and Malaysia have been based on deep mutual trust and have made firm commitments to respond to market needs. The two sides have maintained efficient and pragmatic regulatory cooperation, and have jointly created a good situation. The two markets each serve as key financial hubs connecting global capital to mainland China and the Southeast Asian markets. They complement each other's strengths and complement each other. They will continue to strengthen this partnership and promote common prosperity and development.

The Chief Executive of the Hong Kong Securities Regulatory Commission, Leung Fung-yee, said that the memorandum of understanding marks an important step in regulatory cooperation with Malaysia and will help expand the cross-border investment channels and choices of investors in the two markets. The memorandum also highlights the determination to work together to promote the development and diversification of the Asian market through strengthened ties, sound regulatory standards and solid investor protection.

Chairman of the Malaysian Securities Commission, Dato' Mohammad Faiz Azmi (Dato' Mohammad Faiz Azmi), said that the memorandum of understanding was an important milestone in strengthening capital market ties between Malaysia and Hong Kong. He said that the memorandum of understanding established a practical framework to help promote more cross-border investment, expand channels for participation in capital markets between the two places, and enrich investment opportunities for issuers and investors in the two jurisdictions.

The Hong Kong Securities Regulatory Commission said that further details on mutual fund recognition arrangements are contained in the circular issued by the Hong Kong Securities Regulatory Commission today and the Malaysian Securities Commission's “Guidelines Applicable to the Sale, Promotion and Distribution of Overseas Funds”. Also, in order to facilitate the mutual listing of equity securities, the Hong Kong Stock Exchange (0388) has now added the Malaysia Stock Exchange to the list of authorized stock exchanges.