CSOP Asset Management Limited (CSOP) has announced the listing of CSOP Saudi Arabia ETF, the first exchange traded product in Asia Pacific to track the Saudi Arabian equity market. The partnership with the Public Investment Fund (PIF) offers a unique opportunity for Asian foreign investment and access to Saudi Arabia’s dynamic and diversified equity market.
“The launch of the CSOP Saudi Arabia ETF is a significant milestone. It makes possible for mass market investors in our part of the world to invest and participate in the development of the Saudi Arabia’s economy, allowing them to benefit from the vast opportunities of the country’s bright and promising future.”
CSOP Saudi Arabia ETF (HKD counter: 2830, RMB counter: 82830) tracks the FTSE Saudi Arabia Index, providing exposure to over 50 leading large and mid-cap companies listed on the Tadawul stock exchange. The ETF covers sectors including financials, basic materials, energy, and telecommunications, capturing the drivers of Saudi Arabia’s economy while offering diversified exposure. The FTSE Saudi Arabia Index has achieved a significant return of 45.3% in the past three years.
The CSOP Saudi Arabia ETF is a physical ETF that combines physical and synthetic representative sampling strategies. It invests up to 100% of its net asset value in a representative portfolio of securities that have a high correlation to the FTSE Saudi Arabia Index. The ETF will launch with an initial investment of over USD 1 billion, making it the largest Saudi Arabia ETF globally. It has a listing price of around HKD 78 per unit, a trading lot size of 10 units, and an annual management fee of 0.99%.
The Financial Secretary of HKSAR, Mr. Paul Chan, stated that the launch of the CSOP Saudi Arabia ETF opens up investment opportunities for mass market investors in Asia and strengthens the partnership between Hong Kong and Saudi Arabia in realizing the goals of Saudi Arabia’s Vision 2030.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, highlighted the significance of the partnership between CSOP and PIF in unlocking opportunities between Hong Kong and the Saudi equity market. He emphasized PIF’s commitment to developing the Saudi capital market and opening it up to international investors.
CSOP CEO Chen Ding expressed his excitement and gratitude to the Public Investment Fund and their trusted partners for bringing Asia’s first Saudi Arabia ETF to Hong Kong. He emphasized CSOP’s dedication to enriching the ETF ecosystem and bringing innovative products to clients in the region.
The Chief Executive Officer of the Securities and Futures Commission (SFC), Ms. Julia Leung, expressed confidence in the growth of Saudi-Hong Kong ties and the exploration of further opportunities in various areas.
Chief Executive of HSBC Hong Kong, Luanne Lim, highlighted the role of HSBC in connecting CSOP and PIF, supporting their growth agendas, and driving product innovation in the investment landscape.
CSOP is a leading ETF issuer in Hong Kong SAR, offering a wide range of product offerings. The company is committed to cross-border initiatives and collaborations and has actively participated in ETF connectivity programs between mainland China and Hong Kong SAR.
This document is for general information only and does not constitute investment advice. Investors should refer to the Prospectus and the Product Key Facts Statement for further details and should consult their own advisors before engaging in any transaction.