Hong Kong’s SFC explores cross-listings of ETFs with Saudi Arabia

Hong Kong is constant to extend ties with Saudi Arabia within the monetary sector as Center Japanese and Asian economies transfer nearer collectively. 

Inside the final week, Julia Leung, Hong Kong’s Securities and Futures Fee’s (SFC) chief govt officer, and Christina Choi, SFC’s govt director of funding merchandise, have been on a latest Center East enterprise journey to fulfill the pinnacle of the Saudi Arabia’s Capital Market Authority (CMA) and senior executives of Saudi Tadawul Group (dad or mum firm of the Saudi Change) 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 Change, the events mentioned tips on how to strengthen collaboration in monetary companies between the Hong Kong SAR and Saudi Arabia.

In addition they explored a possible supervisory Memorandum of Understanding (MoU) and exchanged views on “a variety of problems with mutual curiosity, together with facilitative measures associated to cross-listing of trade traded funds (ETF) in each capital markets”, in accordance with a SFC June 3 media release.

Final 12 months, the HKEX grew to become the primary trade to supply a listed ETF in Asia Pacific for shares listed in Saudi Arabia.

Exhibiting a number of the potential alternatives for invesors, this week Saudi’s largest agency Saudi Aramco launched a secondary providing on the Saudi Change of 154.5 million shares, or 10% of the agency’s share capital. IT might increase round  $12 billion for the oil group. 

In one other transfer by the the SFC delegation, Leung and Choi took half in a roundtable with main native asset managers and monetary establishments in Riyadh. They mentioned the regulatory and market panorama in Hong Kong, together with the state of affairs and alternatives of the asset and wealth administration sector. 

The conferences adopted the primary worldwide Capital Markets Discussion board in Hong Kong on Could 9, which was co-organised by Saudi Tadawul Group and the Hong Kong Inventory Change (HKEX). 

In the meantime, the Chinese language authorities has been encouraging Hong Kong’s flagship provider Cathay Pacific to open up extra routes to the Center East – one thing IT might battle with as IT suffers from employees shortages.

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