HKEX plans Riyadh workplace as Saudi Alternate launches two Hong Kong ETFs

The Hong Kong Inventory Alternate (HKEX) is planning to open an workplace in Riyadh in 2025.

The intention of the brand new workplace is to strengthen HKEX’s Center East presence because the group seems to advertise larger connectivity between China and the Center East.

In keeping with an announcement, the brand new Riyadh workplace will allow HKEX to higher join with traders and corporations in one of many world’s “most dynamic and revolutionary financial hubs, offering on-the-ground assist to assist them entry Hong Kong’s broad and various monetary merchandise ecosystem.”

The transfer comes October 31, Saudi Alternate began itemizing and buying and selling items “SAB Make investments Cling Seng Hong Kong ETF” as an trade traded fund on the principle market, with the image 9411 and ISIN Code SA165054J1K7 with +/- 10% day by day worth fluctuation limits. SAB Make investments is a subsidiary of the Saudi Awwal Financial institution.

The day earlier than the Abilad CSOP MSCI Hong Kong China Fairness ETD (Alibad ETF) turned the first index fund monitoring Hong Kong shares in Saudi Arabia, underneath the code 9410 and had raised greater than $1.2 billion based on CSOP Asset Administration, which has partnered with Alibad Capital; the ETF tracks the 30 largest corporations which might be compliant with shariah necessities.

HKEX chief government officer Bonnie Chan stated in a press release: “We’re delighted to be opening a Center East workplace in Riyadh, marking step one in elevating our presence throughout this vibrant and fast-growing area. This underscores our strategic dedication to selling larger capital market connections between China and the Center East, while supporting the ambitions of our broad vary of consumers from the area and world wide.”

She added: “As funding ties between the Center East and Asia develop stronger, Hong Kong and HKEX’s roles in connecting capital and alternatives between these areas have develop into extra vital than ever. Becoming a member of our places of work in Beijing, London, New York, Shanghai, and Singapore, the brand new Riyadh workplace will allow us to foster larger international protection and facilitate entry for Center East shoppers to Asia’s most worldwide, various and liquid capital markets in Hong Kong.”

As well as,the HKEX has not too long ago a Memorandum of Understanding (MoU) with the Saudi Tadawul Group, and added the Saudi Alternate, Abu Dhabi Securities Alternate, and Dubai Monetary Market to HKEX’s checklist of recognised inventory exchanges.

Earlier this yr Julia Leung, Hong Kong’s Securities and Futures Fee’s (SFC) chief government officer, and Christina Choi, SFC’s government director of funding merchandise, went on a current Center East enterprise journey to fulfill the top of the Saudi Arabia’s Capital Market Authority (CMA) and senior executives of Saudi Tadawul Group (mum or dad firm of the Saudi Alternate) in Riyadh.

Throughout separate conferences with the CMA’s chairman Mohammed bin Abdullah Elkuwaiz and its commissioner Abdulaziz Abdulohsen Bin Hasan and a gaggle of executives from Saudi Tadawul Group together with Mohammed Al Rumaih, CEO of the Saudi Alternate, the events mentioned the way to strengthen collaboration in monetary companies between the Hong Kong SAR and Saudi Arabia.

In addition they explored a possible supervisory MoU and exchanged views on “a spread of problems with mutual curiosity, together with facilitative measures associated to cross-listing of ETFs in each capital markets”, based on a SFC June 3 media release. 

For extra evaluation on Asia’s connectivity with the Center East please see Quantity Two of FinanceAsia’s 2024 print journal right here. 

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