Hong Kong and Malaysia Sign MOUs to Enhance Financial Regulatory Cooperation and Market Connectivity

SFST leads Hong Kong financial and accounting regulators to enhance co-operation with Malaysian counterparts

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, was joined by representatives of Hong Kong financial and accounting regulators today (July 23) to attend a signing ceremony of Memorandums of Understanding (MOUs) on financial and accounting regulatory co-operation before concluding his visit to Kuala Lumpur, Malaysia. He also met with the Secretary General of the Treasury, Ministry of Finance of Malaysia, and representatives of a company.

The signing ceremony featured an MOU governing the framework for mutual recognition of funds and cross listings of equity securities by the Securities and Futures Commission of Hong Kong (SFC) and the Securities Commission Malaysia (SC Malaysia). Witnessed by Mr Hui; the Chairman of the SFC, Dr Kelvin Wong; the Secretary General of the Treasury, Ministry of Finance of Malaysia, Tan Sri Johan Mahmood Merican; and the Managing Director of the SC Malaysia, Datin Padua Azalina Adham, the MOU was signed by the Chief Executive Officer of the SFC, Ms Julia Leung, and the Executive Chairman of the SC Malaysia, Dato' Mohammad Faiz Azmi.

Another MOU was signed between the Accounting and Financial Reporting Council (AFRC) and the SC Malaysia at the ceremony to officially build a strategic partnership in strengthening cross-border regulatory co-operation in the areas of audit oversight and financial reporting compliance, thereby enhancing investor protection and reinforcing public confidence in auditing and financial reporting. The Chief Executive Officer of the AFRC, Ms Janey Lai, and the Executive Director and Head, Audit Oversight of the SC Malaysia, Mr Alex Ooi, signed the MOU.

In addition, Bursa Malaysia was presented a certificate to recognise it as a Recognised Stock Exchange of Hong Kong Exchanges and Clearing Limited (HKEX), allowing companies with a primary listing on Bursa Malaysia's Main Market to apply for a secondary listing in Hong Kong.

At a fireside chat held at the signing ceremony, Mr Hui shared views with Tan Sri Johan under the theme "Connecting Markets, Expanding Opportunities: Strengthening Malaysia - Hong Kong Capital Market Connectivity". They explored opportunities to deepen capital market linkages between Hong Kong and Malaysia, thereby enhancing cross-border capital flows, investment collaboration, and broader market connectivity.

Mr Hui said, "These MOUs signify a substantive step in our regulatory co-operation with Malaysia to broaden cross-border investment channels and choices for investors in both markets. It also underscores our shared commitment to promoting market development in Asia through enhanced connectivity, robust regulatory standards and strong investor protection."

He said that the growth opportunities for Malaysia and Hong Kong are substantial. Expanding the engagement between the two markets, including enhancing co-operation between financial regulators of the two places, is a key strategic priority as Hong Kong continues the work to build a multi-asset product ecosystem, drawing global liquidity to Asia at a time of heightened macro uncertainties.

Before the signing ceremony, Mr Hui had a meeting with Tan Sri Johan. They discussed areas that Hong Kong and Malaysia could expand collaboration, such as the Islamic finance and co-operation between regulators.

The last stop of the four-day visit was a meeting with the Chief Financial Officer of the Capital A Berhad, Ms Teh Mun Hui. The company is actively exploring a dual listing in Hong Kong to broaden access to global and Mainland Chinese investor pools. Mr Hui said that the HKEX has streamlined the listing requirements for overseas issuers, introduced a set of core shareholder protection standards for all issuers and issued additional guidance to assist overseas companies seeking to list in Hong Kong. Now with Bursa Malaysia recognised by the HKEX, Hong Kong is an even better platform for Malaysian enterprises to tap into worldwide and Mainland capital for global expansion.

Mr Hui will depart for Hong Kong this evening.

Source: AI-found images

Outcome of 2026 rent review for public rental housing

The Subsidised Housing Committee (SHC) of the Hong Kong Housing Authority (HA) today (July 23) endorsed the outcome of the 2026 rent review for public rental housing (PRH) in accordance with section 16A of the Housing Ordinance (HO).

The Hong Kong Housing Authority, Photo source: reference image

"Section 16A of the HO provides that the HA shall conduct a rent review every two years in accordance with the mechanism stipulated therein and vary the PRH rent according to the change in the income index between the first and second periods covered by the review. The report compiled by the Commissioner for Census and Statistics (C for C&S) for the 2026 PRH rent review showed that the income index of the second period of the review (i.e. 2025) was higher than that of the first period (i.e. 2023) by 2.04 per cent. To this end, PRH rent will be adjusted upwards by 2.04 per cent with effect from October 1, 2026, " a spokesman for the HA said.

The extent of the 2026 PRH rent adjustment is mild. The average monthly rent as at March 2026 for PRH tenants was $2,519. Applying the adjustment of +2.04 per cent, the average monthly rent increase per PRH household is about $51, with the amount of monthly rent increase ranging from $10 to $128.

Public rental housing, Photo source: reference image

"After excluding the ‘well-off tenants’ and Comprehensive Social Security Assistance households whose rent is paid by the Government, the monthly rent increase for more than 60% of the remaining PRH households will be $60 or less, and about 90 per cent of the remaining PRH households have a monthly rent increase of $80 or below. We believe that the increase is within an affordable level for PRH tenants," the HA spokesman said.

The Government announced in the 2026-27Budget that rates concessions would be provided for the first two quarters of 2026-27, subject to a ceiling of $500 for each rateable property per quarter. In line with established practice, HA will pass on the rates concessions to PRH tenants. The rates concessions receivable by each PRH household in 2026-27 range from about $258 to $1,000.

In addition, rents for newly completed PRH estates are set according to the District Best Rent Levels of respective districts, which are determined per meter square of internal floor area with reference to the location and value of the estates concerned. In light of the 2026 rent review of PRH, the rent adjustments for both existing and newly completed PRH estates will take effect on October 1,2026. The HA will notify all PRH tenants in writing one month before the new rent implementation date. Meanwhile, the Housing Bureau has stated that the monthly licence fee for Light Public Housing (LPH) is set at about 90 per cent of the rents for newly completed PRH estates in the same district. Therefore, the monthly licence fees payable of LPH projects will be aligned and adjusted on October 1, 2026 according to the new PRH rental levels. All LPH occupants will be informed of the relevant details in writing one calendar month before the effective date of the new licence fee.

The HO stipulates the PRH rent adjustment mechanism, which came into effect in 2008. Under this mechanism, PRH rent is reviewed every two years. Section 16A(7)(b) of the HO provides that the C for C&S shall compute the income index for the first and second periods under a rent review. The income index is compiled by comparing the income data of about 24 000 PRH households in each of the periods. The mechanism provides an objective basis for the HA to determine when and to what extent PRH rent should be adjusted, taking into account tenants' affordability. According to the mechanism, there is a 10 per cent cap on the rate of rent increase, whereas there is no floor in the case of rent reduction.

Public rental housing, Photo source: reference image