By South China Morning Post | Created at 2024-10-06 23:42:49 | Updated at 2024-10-07 02:17:29
3 hours ago
Middle Eastern traders will soon be able to invest in Hong Kong stocks via two exchange-traded funds (ETFs) tracking benchmarks in the city once they are listed on the Saudi stock exchange at the end of this month.
“The two ETFs tracking Hong Kong stocks to be listed in the Saudi Stock Exchange will mark an important milestone in the linkage between the capital markets of Hong Kong and Saudi Arabia,” Leung said in an interview on Friday.
She visited Saudi Arabia in June to meet officials and discuss the potential listing of ETFs on each other’s exchanges. Saudi Exchange, or Tadawul, is the largest market in the Middle East, with a capitalisation of 10 trillion riyals (US$2.6 trillion).
An ETF is an investment vehicle that works like a combination of mutual funds and stocks, allowing individual and institutional investors to trade these instruments in an easy and convenient way.
Saudi Arabia’s Capital Market Authority said on September 17 that it had granted approval to local asset manager AlBilad Investment’s request to offer “Albilad CSOP MSCI Hong Kong China Equity ETF” units on Tadawul. The regulator did not disclose the fund’s launch schedule.
