The Hong Kong Inventory Change (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 higher connectivity between China and the Center East.
In accordance with an announcement, the brand new Riyadh workplace will allow HKEX to higher join with buyers and corporations in one of many world’s “most dynamic and modern financial hubs, offering on-the-ground help to assist them entry Hong Kong’s broad and numerous monetary merchandise ecosystem.”
The transfer comes October 31, Saudi Change began itemizing and buying and selling models “SAB Make investments Cling Seng Hong Kong ETF” as an change traded fund on the principle market, with the image 9411 and ISIN Code SA165054J1K7 with +/- 10% every day worth 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, below 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 govt officer Bonnie Chan stated 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 higher 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 grow to be 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 higher international protection and facilitate entry for Center East shoppers to Asia’s most worldwide, numerous and liquid capital markets in Hong Kong.”
As well as,the HKEX has not too long ago a Memorandum of Understanding (MoU) with the Saudi Tadawul Group, and added the Saudi Change, Abu Dhabi Securities Change, and Dubai Monetary Market to HKEX’s record of recognised inventory exchanges.
Earlier this yr Julia Leung, Hong Kong’s Securities and Futures Fee’s (SFC) chief govt officer, and Christina Choi, SFC’s govt 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 (guardian 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 bunch of executives from Saudi Tadawul Group together with Mohammed Al Rumaih, CEO of the Saudi Change, the events mentioned learn how to strengthen collaboration in monetary providers 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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