Hong Kong & Malaysia Announced 1) Expansion of Mutual Recognition of Funds (MRF) Scheme & 2) Simplified Dual IPO Listing Framework Between Hong Kong & Malaysia Markets, MRF Scheme to Include Non-Islamic ETFs, Leveraged & Inverse Products & Real Estate Investment Trusts (REITs), Hong Kong Exchange (HKEX) Adds Bursa Malaysia as a Recognised Stock Exchange
23rd July 2026 | Hong Kong
Hong Kong Securities and Futures Commission (SFC) & the Securities Commission Malaysia (SC) have announced 1) Expansion of Mutual Recognition of Funds (MRF) scheme & 2) Simplified dual IPO listing framework between Hong Kong & Malaysia markets. MRF scheme will include non-Islamic ETFs, leveraged & inverse products & real estate investment trusts (REITs). Hong Kong Exchange (HKEX) announced addition of Bursa Malaysia as a recognised stock exchange. Hong Kong SFC (23/7/26): “The Securities and Futures Commission (SFC) and the Securities Commission Malaysia (SC) today entered into a Memorandum of Understanding (MoU) to strengthen cooperation and information exchange to facilitate an expanded mutual recognition of funds (MRF) scheme and a simplified dual Initial Public Offering (IPO) listing framework, marking a new milestone in the connectivity between Hong Kong and Malaysian capital markets (Note 1). The MoU expands the range of investment products eligible under MRF (Note 2) and establishes a simplified framework for dual IPO listings between the two markets. Ms Julia Leung, the SFC’s Chief Executive Officer (CEO), and Dato’ Mohammad Faiz Azmi, the SC Chairman, signed the MoU in the presence of The Honourable Christopher Hui, Secretary for Financial Services and the Treasury of the HKSAR Government, Tan Sri Johan Mahmood Merican, Secretary General of Treasury, Ministry of Finance Malaysia, Datin Paduka Azalina Adham, SC Managing Director, and Dr Kelvin Wong, the SFC’s Chairman, in Kuala Lumpur, Malaysia. A delegation of 33 Hong Kong industry leaders stood witness to the signing, representing a broad spectrum of asset managers, market makers and investment banks. This delegation – which includes the chairpersons of the Hong Kong Investment Funds Association and the Chinese Asset Management Association of Hong Kong – brought together asset managers whose collective portfolios represent over 80% of the total market capitalisation of the Hong Kong exchange traded funds and leveraged and inverse products market. Further details of the MRF scheme are set out in the SFC’s circulars issued today (Note 3), and the SC’s Guidelines for the Offering, Marketing and Distribution of Foreign Funds (Note 4). To facilitate the cross-listings of equity securities, The Stock Exchange of Hong Kong Limited has today added Bursa Malaysia Securities Berhad (Note 5) to the list of Recognised Stock Exchanges.” HKEX (23/7/26): “The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), is pleased to announce today (Thursday) that it has added Bursa Malaysia as a Recognised Stock Exchange (RSE). This will enable public companies with a primary listing on Bursa Malaysia’s main market to apply for a secondary listing in Hong Kong. The recognition increases the number of RSEs in Southeast Asia to four, with the others being the Indonesia Stock Exchange, the Singapore Exchange, and the Stock Exchange of Thailand. The recognition of Bursa Malaysia builds on the Memorandum of Understanding (MOU) signed between HKEX and Bursa Malaysia Berhad earlier this year, reflecting their shared commitment to strengthen market connectivity and enhance access to cross-border opportunities for issuers and investors. The announcement today coincides with the signing of a separate MOU between Hong Kong’s Securities and Futures Commission (SFC) and the Securities Commission Malaysia (SC) to expand mutual market access, underscoring the deepening ties between Hong Kong and Malaysia’s financial markets. Bursa Malaysia becomes the 21st exchange across 19 countries to be recognised by HKEX, further expanding the Exchange’s global network and strengthening connectivity between Hong Kong and key growth markets. A full list is available on the HKEX website. The Exchange will update the list of RSEs from time to time, on the basis that the exchanges meet the requirements of its regulatory framework.”
“ Hong Kong & Malaysia Announced 1) Expansion of Mutual Recognition of Funds (MRF) Scheme & 2) Simplified Dual IPO Listing Framework Between Hong Kong & Malaysia Markets, MRF Scheme to Include Non-Islamic ETFs, Leveraged & Inverse Products & Real Estate Investment Trusts (REITs), Hong Kong Exchange (HKEX) Adds Bursa Malaysia as a Recognised Stock Exchange “
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Hong Kong SFC Notes:
- The MoU serves as an updated cooperation framework following the two regulators’ Declaration on Mutual Co-operation on Development of Islamic Capital Market and Islamic Collective Investment Schemes on 9 November 2009, which established a framework for the mutual recognition of Islamic funds for public offering in both markets.
- The eligible product scope is expanded to include non-Islamic exchange traded funds and leveraged and inverse products, and real estate investment trusts.
- The SFC today issued two circulars to provide details on the MRF scheme: “Mutual Recognition of Funds (MRF) between Malaysia and Hong Kong” and “Cross-listings of Malaysian Real Estate Investment Trusts in Hong Kong”.
- The Guidelines for the Offering, Marketing and Distribution of Foreign Funds has been updated to include specific requirements on the MoU, particularly to paragraph 3.01(a), Appendix I – Part 1, and Appendix 5.
- Bursa Malaysia Securities Berhad is a stock exchange established under the Securities Commission Malaysia Act 1993 and supervised by the Securities Commission Malaysia.
HKEX Chief Executive Officer, Bonnie Y Chan: “We warmly welcome Bursa Malaysia to HKEX’s list of Recognised Stock Exchanges. This recognition reinforces the shared commitment between HKEX and Bursa Malaysia to enhancing regional connectivity and expanding access to capital across Asia. Malaysia is one of Southeast Asia’s most dynamic and internationally connected economies, while Hong Kong serves as Asia’s premier international financial centre and gateway to opportunities on the Chinese Mainland. By creating more efficient pathways for issuers and investors, we are helping to strengthen the flow of capital, ideas and opportunities between our two markets.”
Bursa Malaysia Chief Executive Officer, Dato’ Fad’l Mohamed: “We welcome HKEX’s recognition of Bursa Malaysia as a Recognised Stock Exchange, which creates new opportunities for Malaysian listed companies to broaden their international investor reach and access new sources of capital through a secondary listing in Hong Kong. This recognition marks an important step in the collaboration between Bursa Malaysia and HKEX following the MOU signed earlier this year and reflects confidence in Malaysia’s regulatory standards, market infrastructure and governance framework. It also reinforces our shared commitment to strengthening ties between our markets and advancing regional connectivity.”
Hong Kong & Malaysia Announced 1) Expansion of Mutual Recognition of Funds (MRF) Scheme & 2) Simplified Dual IPO Listing Framework Between Hong Kong & Malaysia Markets, MRF Scheme to Include Non-Islamic ETFs, Leveraged & Inverse Products & Real Estate Investment Trusts (REITs), Hong Kong Exchange (HKEX) Adds Bursa Malaysia as a Recognised Stock Exchange
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