The Hong Kong Stock Exchange (HKEX) is planning to open an office in Riyadh in 2025.
The aim of the new office is to strengthen HKEX’s Middle East presence as the group looks to promote greater connectivity between China and the Middle East.
According to an announcement, the new Riyadh office will enable HKEX to better connect with investors and companies in one of the world’s “most dynamic and innovative economic hubs, providing on-the-ground support to help them access Hong Kong’s broad and diverse financial products ecosystem.”
The move comes October 31, Saudi Exchange started listing and trading units of “SAB Invest Hang Seng Hong Kong ETF” as an exchange traded fund on the Main Market, with the symbol 9411 and ISIN Code SA165054J1K7 with +/- 10% daily price fluctuation limits.
The day before the Abilad CSOP MSCI Hong Kong China Equity ETD (Alibad ETF) became the first index fund tracking Hong Kong stocks in Saudi Arabia, under the code 9410 and had raised more than $1.2 billion according to CSOP Asset Management, which has partnered with Alibad Capital; the ETF tracks the 30 largest companies that are compliant with shariah requirements.
HKEX chief executive officer Bonnie Chan said in a statement: “We are delighted to be opening a Middle East office in Riyadh, marking the first step in elevating our presence across this vibrant and fast-growing region. This underscores our strategic commitment to promoting greater capital market connections between China and the Middle East, whilst supporting the ambitions of our broad range of customers from the region and around the world.”
She added: “As investment ties between the Middle East and Asia grow stronger, Hong Kong and HKEX’s roles in connecting capital and opportunities between these regions have become more important than ever. Joining our offices in Beijing, London, New York, Shanghai, and Singapore, the new Riyadh office will enable us to foster greater global coverage and facilitate access for Middle East clients to Asia’s most international, diverse and liquid capital markets in Hong Kong.”
In addition, The HKEX has recently a Memorandum of Understanding with the Saudi Tadawul Group, welcoming Asia first and the world’s biggest Saudi-focused Exchange-Traded Fund (ETF), and adding the Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market to HKEX’s list of recognised stock exchanges.
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