Saudi Arabia Launches First Hong Kong-Listed ETFs

On October 30, Saudi Arabia launched its first exchange-traded funds (ETFs) that track Hong Kong-listed equities, specifically the Albilad CSOP MSCI Hong Kong China Equity ETF, which raised over $1.2 billion at debut. Financial Secretary Paul Chan emphasized that this initiative strengthens financial cooperation between Hong Kong and Saudi Arabia, allowing Middle Eastern investors access to Hong Kong's capital markets, which are heavily tied to China's economy. The ETF is Sharia-compliant and invests primarily in a Hong Kong-listed ETF tracking the MSCI HK China Connect Select Index, featuring major Chinese companies like Meituan and Techtronic Industries. This move aligns with China's Belt and Road Initiative and Saudi Arabia's Vision 2030, fostering deeper financial ties between China and the Middle East. CSOP Asset Management and Albilad Capital aim to enhance the investment landscape by providing opportunities for engagement with China's economic growth. The launch marks a significant milestone in the evolution of Hong Kong as a global financial hub, with expectations of further ETFs to follow.