Financial Secretary Paul Chan Mo-po Announces New ETFs Linking Hong Kong and Saudi Arabia

New ETFs Create Opportunities for Middle Eastern Investors

Financial Secretary Paul Chan Mo-po recently announced that investors in the Middle East will soon gain access to Hong Kong stocks through two new exchange-traded funds (ETFs) set to be listed on the Saudi stock exchange. As emphasized by Julia Leung Fung-yee, CEO of the Securities and Futures Commission (SFC), this step represents a significant advancement in the linkage of capital markets between Hong Kong and Saudi Arabia. The Saudi Capital Market Authority has granted approval for Albilad CSOP MSCI Hong Kong China Equity ETF to be offered, further enhancing the investment landscape.

Strengthening Economic Relations

The new ETFs will not only facilitate investments but also strengthen existing economic relations. On their visit to Riyadh, Paul Chan Mo-po and his delegation aim to foster collaboration in financial sectors, highlighting the growing importance of cross-border partnerships.

Significance of ETFs in Investment Strategy

• ETFs offer a strategic blend of mutual funds and stocks, enhancing trading accessibility for both individual and institutional investors.
• Investors can potentially benefit from diversification and lower costs while accessing Hong Kong's dynamic market.
• The movement underscores the role of Hong Kong as a vibrant financial hub in Asia.

This initiative aligns with the SFC's mission to expand investment avenues, protect investor interests, and maintain market integrity.