Hong Kong Collaborating with Saudi Arabia to Develop Exchange-Traded Fund
In an exciting development, Hong Kong is working on creating an exchange-traded fund (ETF) in partnership with Saudi Arabia to track the former’s local stock indices. Michael Wong, the deputy financial secretary of Hong Kong, made this announcement during the Capital Market Forum in Hong Kong. This initiative aims to strengthen economic ties between Hong Kong, Saudi Arabia, and mainland China.
Plans for an Economic and Trade Base in Riyadh
Michael Wong also revealed plans to establish a trade base in Riyadh to further enhance economic relations between the two regions. This move signifies a significant step towards fostering collaboration and financial growth between Hong Kong and Saudi Arabia.
Enhancing Financial Bonds Between Hong Kong and Saudi Arabia
The recent launch of an ETF in Hong Kong that tracks the Saudi Arabia Index highlights the growing partnership between the two regions. With Cathay Pacific Airways set to commence flights from Hong Kong to Riyadh, the connectivity between the two areas is expected to improve significantly, reducing flight time to just six hours.
Deepening Connection at the Capital Market Forum
Khalid Al-Hussan, CEO of Saudi Tadawul Group, emphasized the deepening connection between Hong Kong and Saudi Arabia at the opening ceremony of the Capital Market Forum. The event brought together over 1,000 investors, listed companies, and financial pioneers to explore market challenges and opportunities.
Saudi Arabia’s Vision 2030 and Financial Market Growth
The transformation of Saudi Arabia’s stock exchange since the launch of Vision 2030 has been remarkable. With an increase in daily trading volume, more IPOs, and growth in asset management, the Kingdom’s capital market is attracting global attention.
Targeting $3.2 Trillion in Capital Formation
Saleh Al-Khabti, Saudi Arabia’s deputy minister of investment transactions, shared the Kingdom’s ambitious plan to achieve fixed capital formation of over $3 trillion. With a strong economy, healthy market, and welcoming environment for investors, Saudi Arabia aims to capture the appetite of global investors across various sectors.