Bursa Malaysia added as a recognised stock exchange

Public companies with a primary listing on Bursa Malaysia's main market, one of the largest bourses in Asean, will now be able to apply for a secondary listing in Hong Kong, the SAR's bourse operator said on Thursday.

This came as Hong Kong Exchanges and Clearing (HKEX) announced that its subsidiary has added Bursa Malaysia as a recognised stock exchange.

Speaking in a statement, HKEX noted the move would raise the number of its recognised stock exchanges in Southeast Asia to four, with three others being located in Indonesia, Singapore, and Thailand.

“We warmly welcome Bursa Malaysia to HKEX's list of Recognised Stock Exchanges," said Bonnie Chan, chief executive of HKEX, in the statement.

"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," she added.

The announcement also came after HKEX and Bursa Malaysia signed a Memorandum of Understanding (MoU) earlier this year to strengthen market connectivity.

Echoing Chan, Dato’ Fad’l Mohamed, chief executive of Bursa Malaysia, noted that the move creates new opportunities for Malaysian listed firms to broaden their global investor reach and access new sources of capital.

Separately, securities regulators from Hong Kong and Malaysia also signed an MoU governing the framework for mutual recognition of funds and cross listings of equity securities, according to a government statement.

Another MoU was signed between the Accounting and Financial Reporting Council and the Securities Commission Malaysia to strengthen cross-border regulatory cooperation in areas of audit oversight and financial reporting compliance.

Speaking at the signing ceremony in Kuala Lumpur, Secretary for Financial Services and the Treasury, Christopher Hui, said these MoUs marked a substantive step between the SAR and Malaysia to widen cross-border investment channels.

"It also underscores our shared commitment to promoting market development in Asia through enhanced connectivity, robust regulatory standards and strong investor protection," he said.

He added that the city's bourse operator has streamlined the listing requirements for overseas issuers, and has introduced a set of core shareholder protection standards as well as listing guidance for all issuers.

Earlier the financial services minister met with Teh Mun Hui, chief financial officer at Capital A Berhad, a Malaysian investment firm that is seeking a secondary listing in the SAR.

He also met with Tan Sri Johan Mahmood Merican, the Secretary General of the Treasury, Ministry of Finance of Malaysia, as the two sides discussed how to further expand cooperation in areas such as Islamic finance.

Edited by Aaron Tam ...