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Saudi Arabia Embraces Hong Kong Stocks: Launch of Two ETFs Strengthens Market Linkages, Attracts International Investors
Saudi Arabia welcomes Hong Kong shares with the introduction of two ETFs at the end of the month, states the SFC CEO. The SFC has observed a surge of interest from global investors, previously not heavily invested in Hong Kong stocks, who are now swiftly returning to the domestic market.
Leung mentioned in a Friday interview that the listing of the two ETFs, which track Hong Kong stocks, in the Saudi Stock Exchange signifies a significant development in the connection between the financial markets of Hong Kong and Saudi Arabia.
In June, she traveled to Saudi Arabia to engage with authorities and talk about the possibility of listing ETFs on their respective exchanges. Known as Tadawul, the Saudi Exchange is the biggest market in the Middle East, boasting a capital worth 10 trillion riyals, equivalent to US$2.6 trillion.
An ETF, or Exchange Traded Fund, functions as a hybrid of mutual funds and stocks, providing both individual and institutional investors with a straightforward and practical method to trade these financial tools.
On September 17, the Capital Market Authority of Saudi Arabia announced that it has given the green light to AlBilad Investment, a local asset manager, to list "Albilad CSOP MSCI Hong Kong China Equity ETF" units on Tadawul. However, the authority did not reveal when the fund will be launched.
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