Financial regulators and market experts from Hong Kong and the Middle East on Tuesday called for closer collaboration between their capital markets to navigate escalating geopolitical uncertainties and drive global economic growth.
Highlighting Hong Kong’s unique connectivity with the Chinese mainland, they emphasized the potential for cross-border initiatives to create new opportunities for investors and businesses.
Speaking at the “Forging Regional Capital Markets Collaboration” panel of the 18th Asian Financial Forum (AFF) in Hong Kong, Abdulaziz bin Hassan, board member of the Saudi Capital Market Authority, underscored the importance of financial cooperation between Saudi Arabia and China. “There is something that the two nations can work together on to make the global economy and productivity more stable,” he said.
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China issued $2 billion in sovereign bonds in Riyadh, Saudi Arabia, in November, marking the first of its kind issued and traded in the Middle East. The bonds received an enthusiastic market response, as they were almost 20 times oversubscribed.
This debt sale is the latest indication of growing ties between the world’s second-largest economy and the oil-rich kingdom amid escalating geopolitical rifts, most recently fueled by US President-elect Donald Trump’s “America First” policy agenda.
In another significant development, Asia Pacific’s first exchange-traded fund (ETF) tracking Saudi Arabian equities debuted on the Hong Kong Stock Exchange in late 2023. The ETF allows Hong Kong investors to trade Saudi stocks, such as Saudi Aramco and Saudi National Bank, in Hong Kong dollars or Chinese yuan. Meanwhile, Saudi Arabia launched its first ETF last year, tracking Hong Kong-listed shares, primarily Chinese mainland companies.
These initiatives align with Riyadh’s “Vision 2030” blueprint, which seeks to diversify its economy and reduce its reliance on oil.
Barry Chan, managing director of China International Capital Corp Ltd, echoed the call for greater regional collaboration. He noted that Saudi Arabia is increasingly looking beyond traditional industries toward high-tech sectors, new energy and tourism.
“In the last 30 years, what we call modernization or industrialization in China offers valuable experience that can be shared with other regions, including Saudi Arabia,” said Chan, who is also head of the Asia-Australia region and head of investment banking in Hong Kong at CICC.
He said that Chinese expertise in areas such as electric vehicles (EV), supply chains and renewable energy could provide a roadmap for development in Saudi Arabia and the broader Gulf region.
Vanessa Lau, chief operating officer and group chief financial officer at Hong Kong Exchanges and Clearing Ltd (HKEX), expressed cautious optimism about the year ahead, while pointing to the Chinese mainland’s “long-term growth story” and Hong Kong’s superconnector role.
“I think 2025 will continue to be shaped by challenges and uncertainties,” Lau said, referencing the looming tariff hikes promised by the upcoming Trump administration in the US.
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Despite these headwinds, Lau highlighted Asia’s continued dominance as the engine of global economic growth. Asia contributed more than 60 percent of global economic growth in 2024, according to the International Monetary Fund (IMF). For 2025, Asia is projected to grow at 4.4 percent, compared to 3.2 percent globally. China, within Asia, remains central to this growth story, she said.
Lau also underscored Hong Kong Special Administrative Region’s strategic position as “the most international city in China and the most Chinese city outside of the mainland”.
“With its unique connectivity to the Chinese mainland, Hong Kong is well-positioned to drive the next phase of global growth. Through 2025, we should see many initiatives unfold, connecting opportunities in the Middle East, Southeast Asia, and beyond to China’s growth story,” she said.
