On 23 July 2026, the Securities Commission Malaysia (“
SC”) and the Securities and Futures Commission of Hong Kong (SFC) signed a Memorandum of Understanding Concerning Mutual Recognition of Covered Funds, and Simplified Dual IPO Listing Framework (“
MOU”).
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The MOU provides a framework for the mutual recognition and cross-listing of collective investment schemes, such as exchange-traded funds and real estate investment trusts, and seeks to introduce a simplified dual initial public offering (“
IPO”) listing framework between Malaysia and Hong Kong.
Simplified dual IPO listing framework
To facilitate the cross-listing of equity securities, the Stock Exchange of Hong Kong Limited has added Bursa Malaysia Securities Berhad (“
Bursa Securities”) to its list of Recognised Stock Exchanges (RSE). This enables public limited companies listed on Bursa Securities to apply for a secondary listing in Hong Kong.
The simplified dual IPO listing framework will allow issuers seeking simultaneous primary and secondary listings to use a single set of submission documents, including the prospectus. According to the SC, the simplified dual IPO listing framework will come into effect in September 2026.
Follow-up action
Following-up on the signing of the MOU, the SC Chairman, Dato’ Mohammad Faiz Azmi said that the SC is looking at large non-listed companies seeking a listing on Bursa Securities and trying to encourage them to undertake an IPO in Hong Kong at the same time.
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As explained by Dato’ Mohammad Faiz, the use of a single set of submission documents, including the prospectus, under the simplified dual IPO listing framework could reduce the complexity and costs for companies, as compared with preparing separate prospectuses for the two markets.
The SC Chairman also added that leveraging on a dual listing in Malaysia and Hong Kong will widen the access of dual-listed companies to international investors.
Update by Tan Wei Liang (Partner) of the Corporate Practice of Skrine.