Malaysia, Hong Kong securities regulators agree to ease dual IPO listings, strengthen collaboration
Move aims to encourage cross-border investment, broaden access to both countries’ capital markets and enhance investment opportunities
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[KUALA LUMPUR] Malaysian and Hong Kong securities regulators signed a memorandum of understanding on Thursday (Jul 23) aimed at facilitating dual initial public offering (IPO) listings in both countries, as well as collaborating on the mutual recognition and cross listing of covered funds.
This follows the earlier launch of a co-branded index – The HKEX Bursa Malaysia Large Cap Index, unveiled in March – by Bursa Malaysia and Hong Kong Exchanges and Clearing, amid a push to deepen capital market links between both countries’ bourses.
The deal – which would cover products such as exchange-traded funds (ETFs) and real estate investment trusts (Reits) – establishes a practical framework to encourage greater cross-border investment, broaden access to both countries’ capital markets and enhance investment opportunities, the Malaysian Securities Commission said in a statement.
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, the Malaysian Securities Commission said.
Under the mutual recognition of funds framework, ETFs and Reits approved in Malaysia or Hong Kong may be offered to investors in the corresponding jurisdiction through a secondary listing on the host exchange, expanding investors’ access, the regulator added.
Investors are offered an extensive range of options, with the Hong Kong exchange hosting over 2,900 listed companies, ETFs and Reits, with more than 1,130 similar offerings on Malaysia’s Bursa, Malaysian Securities Commission chairman Mohammad Faiz Azmi said at the signing event.
“We hope that market players will leverage this arrangement to introduce more bespoke regionally-focused offerings including ETFs,” he said. REUTERS
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