Hong Kong's Securities and Futures Commission and the Securities Commission Malaysia signed a memorandum of understanding to expand their mutual recognition of funds scheme and simplify the framework for dual initial public offerings, according to a Thursday statement.

The agreement broadens the range of investment products eligible under the mutual recognition of funds scheme, while streamlining dual IPO listings to strengthen capital market connectivity between the two jurisdictions.

The SFC said the enhanced framework will expand cross-border investment opportunities, improve market access and deepen regulatory cooperation.

Separately, Hong Kong Exchanges and Clearing (HKG:0388) added Bursa Malaysia Securities to its list of Recognized Stock Exchanges, facilitating cross-listings of equity securities between the two markets.