SFC Partners with Saudi Tadawul for Cross-Border ETF Listings and Investor Training

SFC and Saudi Tadawul’s Strategic Collaboration

In a groundbreaking move, the Securities and Futures Commission (SFC) of Hong Kong will partner with Saudi Arabia's Capital Market Authority (CMA) to foster stronger connections through cross-border listings of stocks, ETFs, bonds, and a multitude of financial instruments. CEO Julia Leung announced during a media briefing in Riyadh that an agreement will be signed to formalize their collaborative efforts.

Building Stronger Financial Ties

Both regulatory bodies aim to implement staff secondments to enhance training opportunities. Regular coordination meetings in Hong Kong or Riyadh are planned to pursue mutual goals, as suggested by CMA chairman Mohammed bin Abdullah Elkuwaiz.

Benefits of the Collaboration

• The partnership seeks to promote trading and enhance the variety of financial products available across both markets.
• Over 100 Hong Kong financiers are already participating in the Future Investment Initiative summit in Riyadh.
• This collaboration is timely, given the strained political relations affecting trade with the US.

Notably, two ETFs directly linked to Hong Kong stocks have recently made their debut on Saudi Tadawul. Leung remarked that these ETF listings represent just the start of a synergistic journey between capital markets.

Expanding Financial Products

The SFC has streamlined the listing process for overseas-listed ETFs on Hong Kong's exchange, which includes those already traded on Tadawul. Furthermore, Hang Seng Investment Management is planning to introduce additional ETFs along with various investment products on the Saudi market.

As expressed by Rosita Lee, the CEO of Hang Seng Investment Management, these developments signify a growing trend towards greater cross-border trading opportunities.

With this partnership, both regions stand to gain from enhanced investment options, signaling a formidable step forward in international capital markets.