Hong Kong Strengthens Middle East Ties by Announcing HKEX Office in Riyadh

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The Albilad CSOP MSCI Hong Kong China Equity ETF debuted on Tadawul on Oct. 30, 2024.

Hong Kong’s stock exchange is to set up an office in Saudi Arabia’s capital in 2025 to strengthen links between China and the Middle East.

The move comes as the Saudi Exchange, or Tadawul, began listing exchange-traded funds (ETFs) from Hong Kong for the first time on Wednesday and Thursday.

Saudi Arabia has been creating more financial connections with China this year, especially ways for investors in each country to access the other’s stock market.

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Hong Kong's stock exchange plans to open an office in Saudi Arabia in 2025 to enhance connections between China and the Middle East.
The Saudi Exchange started listing Hong Kong ETFs, and the Albilad CSOP MSCI Hong Kong China Equity ETF became the largest ETF in the Middle East, initially valued at $1.2 billion.
HKEX's strategy includes expanding its Middle Eastern presence with Riyadh office and facilitating Saudi-Hong Kong financial market integration through ETFs and collaborations.

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Who’s Who

CSOP Asset Management Ltd.: CSOP Asset Management Ltd. collaborates with Albilad Investment Co. to manage the Albilad CSOP MSCI Hong Kong China Equity ETF, which is the largest ETF in the Middle East with an initial fund size of $1.2 billion. The ETF tracks Hong Kong-listed Chinese stocks via the Southern Hong Kong Stock Connect ETF, as part of expanding financial connections between Saudi Arabia and Hong Kong.

Albilad Investment Co.: Albilad Investment Co. is a Saudi-based investment company collaborating with CSOP Asset Management Ltd. to manage the Albilad CSOP MSCI Hong Kong China Equity ETF. This ETF, the largest listed in the Middle East, invests over 95% of its assets in Hong Kong-listed stocks via the Southern Hong Kong Stock Connect ETF.

Hang Seng Investment Management: Hang Seng Investment Management is involved in managing the SAB Invest Hang Seng Hong Kong ETF, which debuted on the Saudi Exchange. This ETF is fully invested in the Tracker Fund of Hong Kong and tracks the Hang Seng Index. The company collaborates with Saudi-based SAB Invest to offer this investment product.

SAB Invest: SAB Invest is a Saudi-based investment management company involved in the management of the SAB Invest Hang Seng Hong Kong ETF. This ETF, listed on the Saudi Exchange, is fully invested in the Tracker Fund of Hong Kong, which follows the Hang Seng Index. The ETF debuted with an initial fund size of 10 million SAR. It represents a collaboration between SAB Invest and Hang Seng Investment Management as part of expanding financial ties between Hong Kong and Saudi Arabia.

London Metal Exchange: The London Metal Exchange, a subsidiary of HKEX, recently received regulatory approval to establish delivery points for copper and zinc in Jeddah. This development is part of HKEX’s strategy to address Saudi Arabia’s growing commodities sector's infrastructure and trading needs.

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What Happened When

September 2023：: HKEX added its Saudi counterpart as a recognized stock exchange.

November 2023：: HKEX listed Asia Pacific's first ETF to track Saudi Arabian equities - the CSOP Saudi Arabia ETF.

December 2023：: HKEX partnered with the FII Institute to host the first Saudi Capital Markets Forum in Hong Kong.

July 2024：: First two Chinese mainland-listed ETFs tracking the Saudi stock market started trading in Shanghai and Shenzhen.

August 2024：: Saudi Arabia's wealth fund signed preliminary agreements worth as much as $50 billion with six Chinese financial institutions.

October 30, 2024：: Saudi Exchange began listing exchange-traded funds (ETFs) from Hong Kong; the first ETF, Albilad CSOP MSCI Hong Kong China Equity ETF, made its debut.