Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, said on Sunday that Asia’s first-ever Saudi Arabia exchange-traded fund (ETF) will be listed in Hong Kong on Nov. 29.
Chan said in his blog that investors will be able to trade the constituent stocks of the Saudi stock market directly in the Hong Kong market through the ETF in Hong Kong dollar or renminbi (RMB), including oil company Saudi Aramco. This ETF has the largest assets of its kind in the world.
Chan said that in the past two months, the Hong Kong Exchanges and Clearing Limited (HKEX) has added Saudi Exchange and Indonesian Stock Exchange as recognized stock exchanges, allowing companies listed on these exchanges to be listed in Hong Kong for the second time.
Saudi Exchange brings together large energy, industrial and medical sectors in the Middle East, while the Indonesia Stock Exchange is a fund-raising place for high-quality and innovative enterprises in Southeast Asia, Chan said.
Chan encouraged companies in the two markets to use Hong Kong for financing, which he said would provide greater incentives for them to settle in Hong Kong and expand their business