Hong Kong's Securities and Futures Commission’s (SFC) Chief Executive Officer Julia Leung has met with Board Commissioner Abdulaziz Bin Hassan of the Capital Market Authority (CMA) of Saudi Arabia to boost cooperation and work on a Memorandum of Understanding to facilitate cross-border investment initiatives.
The meeting, which took place in Hong Kong, included SFC Chairman Kelvin Wong, Executive Director of Investment Products Christina Choi as well as the CMA senior executives to witness the listing of the first Sukuk (Islamic bond) exchange-traded fund (ETF) in Hong Kong.
The product tracks the underlying Sukuk index, and the SFC-authorised ETF is Asia’s first investment grade Sukuk ETF.
Julia Leung said: "Strengthening collaboration with the Middle East is pivotal to Hong Kong’s efforts to expand its worldwide network of trusted partners amidst new global challenges. This enhanced linkage not only allows investors in both Hong Kong and Saudi Arabian markets to access each other’s assets, but also gives fresh impetus to the city’s role as a super-connector on the China-Middle East Corridor."
Hong Kong is keen to highlight the growth of locally listed ETFS that are also cross-listed on the Saudi market, and that of the HK listed Saudi Arabia ETF with its Mainland listed feeder ETFs.
Data provided by the HK SFC suggests that from their respective listing dates to end-April 2025, the aggregate size of the two Saudi-listed feeder ETFs investing in Hong Kong stocks has risen 8%, and the size of the Hong Kong-listed Saudi Arabia ETF and the aggregate size of its two Mainland-listed feeder ETFs have risen 26% and 22% respectively.
