Published: 16:21, October 27, 2024 | Updated: 18:12, October 27, 2024
Chan: Saudi listing of 2 ETFs tracking HK stocks to attract more investors
By Wu Menglei in Hong Kong
This file photo taken Dec 12, 2019 shows a view of the sign showing the logo of Saudi Arabia's Stock Exchange Market (Tadawul) bourse in the capital Riyadh. (PHOTO / AFP)

The first two exchange-traded funds tracking Hong Kong benchmarks to be listed on Saudi Arabia’s stock exchange will help attract more Saudi traders to easily invest in the city's stock market and encourage vigorous capital flows between the two places, Financial Secretary Paul Chan Mo-po said Sunday.

Writing in his blog, Chan said he will lead a delegation of representatives from the financial and technology and innovation sectors to Riyadh on Monday to attend the launching of the ETFs, promote Hong Kong, and explore more business opportunities.

“It can be expected that after these two ETFs go public in Saudi Arabia, more two-way financial products will be launched, leading to greater familiarity with Hong Kong’s market and attracting more capital from the Middle East,” Chan said.

During the three-day visit, the finance chief will also attend the 8th Future Investment Initiative conference and other meetings, including those with representatives of Saudi institutions.

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“Members of my delegation and I will speak at or join group discussions at the FII conference’s main forum and sub-forums. We’ll promote Hong Kong’s highly international characteristics, its unique role and advantages as a ‘super-connector’ and ‘super value-adder’ under ‘one country, two systems’,” Chan said.

Another key point is to strengthen cooperation between Hong Kong and Saudi Arabia in technology and innovation.

Saudi Arabia has been promoting its “Vision 2030” in recent years to boost economic diversification and get more overseas investment in various projects.

The Hong Kong delegation will also showcase the city’s efforts to promote innovation and technology, and improve the IT ecosystem.

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“Hong Kong Science Park Corporation will conduct a roadshow involving more than 20 of the city’s technology startups in Saudi Arabia, while partners from Hong Kong Investment Corporation will participate in some other activities during the trip,” Chan said.

Hong Kong has been deepening collaboration with markets in the Middle East in the past few years, and Saudi Arabia held the FII PRIORITY Hong Kong jointly with the HKSAR government and Hong Kong Exchanges and Clearing last year.

“We’ll continue to help local enterprises to expand their businesses overseas, introduce more new long-term funding sources to the Hong Kong market, and further consolidate and enhance the SAR’s status as a global financial, shipping and trading center,” Chan said.