Initiating a New ETF to Link Hong Kong and Saudi Stock Indices
Efforts are in motion to establish an exchange-traded fund (ETF) that will mirror the performance of Hong Kong’s stock indices, in collaboration with Saudi Arabian entities. A recent announcement during the first-ever ‘Capital Markets Forum’ in Hong Kong by Deputy Financial Secretary Michael Wong highlighted the city’s engagement with multiple financial bodies to bring this ETF to fruition, aiming to encourage reciprocal capital investments.
The development comes on the heels of Hong Kong’s introduction of an ETF in November 2023 that focuses on the FTSE Saudi Arabia Index.
Reinforcing Bilateral Relations
Wong emphasized Hong Kong’s resolve to consolidate its relationship with Saudi Arabia through various strategies intended to bolster their connection. Among these initiatives, Cathay Pacific Airways is slated to recommence non-stop flights between Hong Kong and Riyadh in the last quarter of the year, reducing travel time to just six hours. Moreover, Hong Kong is contemplating the establishment of a dedicated economic and trade office in the Saudi capital.
Wong conveyed his optimism about the enduring and far-reaching partnership between the two regions, suggesting it would withstand the test of time.
Expanding Connections with the Middle East
Hong Kong is actively pursuing financial integration with Middle Eastern markets. Earlier in January, the Hong Kong Monetary Authority cemented a memorandum of understanding with Saudi Arabia’s Financial Sector Development Program to strengthen market connectivity.
Beyond its dealings with Saudi Arabia, Hong Kong has also entered into a memorandum with Qatar, targeting cooperative ventures within their financial sectors.