HKEX and Bursa Malaysia Sign Agreement to Simplify Dual Listing Framework
Miles Bennett
Hong Kong's SFC and Malaysia's Securities Commission signed an agreement Thursday to streamline dual-listing IPO procedures and broaden mutual product recognition, with HKEX adding Bursa Malaysia to its list of recognized exchanges — a move that formally widens the path for Southeast Asian companies to list in Hong Kong.
What exactly did the two sides agree on?
Three core actions: simplify the dual-listing IPO process, expand the range of mutually recognized products, and allow covered funds to cross-list in both markets.
The product expansion matters most — it now includes non-Shariah-compliant ETFs and REITs. In plain terms = previously only Shariah-compliant products qualified; the door is now open to mainstream ETFs and REITs as well.
This means → the variety of each other's products available to investors on both sides rises significantly, no longer confined to a narrow compliant subset.
Why did HKEX add Bursa Malaysia to its recognized list?
HKEX added Bursa Malaysia Securities Bhd. to its list of recognized stock exchanges — a prerequisite for any dual listing.
In plain terms = without a spot on this list, Malaysian companies cannot even apply for a secondary listing in Hong Kong. The listing is effectively an entry ticket.
HKEX has already added Thailand's and Indonesia's exchanges to the same list in recent years. This latest addition continues a systematic push into Southeast Asia, not a one-off gesture.
What makes Malaysia attractive right now?
Bursa Malaysia's IPO market has picked up sharply: in the first five months of this year, IPO proceeds reached $1.41 billion — matching all of 2025.
This means → Malaysia's IPO pipeline is accelerating fast; half a year nearly equaled last year's full total, drawing more issuers and investors alike.
Bursa Malaysia is actively courting larger tech and foreign-owned companies to list. The dual-listing framework gives those firms an additional channel to tap both Hong Kong and mainland Chinese capital.
How does the Hong Kong SFC frame this?
SFC CEO Julia Leung said: "Our investor base is quite international, but we also want the products — whether companies, listed stocks, or funds — to be equally international."
She specifically pointed to "a lot of opportunities in Southeast Asia" and stressed the goal of bringing in diversified products.
This reflects a strategic pivot: Hong Kong's internationalization push is shifting from "attract more global buyers" to "stock the shelf with global products." Put simply = having international investors is not enough if the product range stays narrow.
How far along is this partnership?
In March, HKEX and Bursa Malaysia jointly launched a co-branded index tracking the 30 largest listed companies in each market.
That index lets Malaysian companies attract mainland Chinese investors through an ETF Stock Connect mechanism. This means → the capital plumbing is already being built, not just the paperwork.
With the agreement now signed, the real test begins: whether Southeast Asian capital-market connectivity can deliver tangible internationalization gains for Hong Kong, or remains a framework on paper.
Content is for reference only, not financial advice.