The Hong Kong Inventory Trade (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 be to advertise better connectivity between China and the Center East.
Based on an announcement, the brand new Riyadh workplace will allow HKEX to raised 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 Trade began itemizing and buying and selling items “SAB Make investments Grasp Seng Hong Kong ETF” as an trade traded fund on the principle market, with the image 9411 and ISIN Code SA165054J1K7 with +/- 10% each day value 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) grew to become the primary index fund monitoring Hong Kong shares in Saudi Arabia, underneath the code 9410 and had raised greater than $1.2 billion in line with 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 mentioned in an announcement: “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 better capital market connections between China and the Center East, while supporting the ambitions of our broad vary of consumers from the area and around the globe.”
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 turn into extra essential 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 better international protection and facilitate entry for Center East purchasers to Asia’s most worldwide, various and liquid capital markets in Hong Kong.”
As well as,the HKEX has lately a Memorandum of Understanding (MoU) with the Saudi Tadawul Group, and added the Saudi Trade, Abu Dhabi Securities Trade, and Dubai Monetary Market to HKEX’s listing of recognised inventory exchanges.
Earlier this 12 months 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 (mother or father firm of the Saudi Trade) in Riyadh.
Throughout separate conferences with the CMA’s chairman Mohammed bin Abdullah Elkuwaiz and its commissioner Abdulaziz Abdulohsen Bin Hasan and a bunch of executives from Saudi Tadawul Group together with Mohammed Al Rumaih, CEO of the Saudi Trade, the events mentioned tips on how to strengthen collaboration in monetary companies between the Hong Kong SAR and Saudi Arabia.
Additionally 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”, in line with a SFC June 3 media launch.
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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