Hong Kong: reinforcing links with Saudi Arabia and the Middle East

HONG KONG SAR - Media OutReach Newswire - 31 October 2024 - Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) Government, is visiting Saudi Arabia to attend the FII (Future Investment Initiative) and strengthen the HKSAR's connections with the country and the wider Middle East region.

In Riyadh (October 30), Mr Chan joined the listing ceremony at the Saudi Exchange for the first exchange-traded fund (ETF) in Saudi Arabia that invests in Hong Kong stocks, a product that is the result of collaboration between Albilad Bank of Saudi Arabia and Hong Kong's CSOP Asset Management Limited.

Mr Chan highlighted that, with this being the largest ETF in the Middle East, it would attract more regional investors and broaden funding sources for the Hong Kong market, while diversifying the investment product offerings in the Saudi market, fostering the development of its ETF market, creating a win-win situation.

Speaking at a breakfast meeting hosted by the Hong Kong Exchanges and Clearing Limited (HKEX) in Riyadh, Mr. Chan said: "Last year, we reached an agreement with the Saudi Exchange and Indonesia Stock Exchange to allow companies in these countries to secondary list on our Stock Exchange. As they come to Hong Kong, they are able to access both international capital and capital from the Mainland under the Connect Schemes."

The Financial Secretary pointed out that Saudi Arabia's Vision 2030 has brought major reforms and opportunities, promoting capital investment from Asian markets.

"As a key component of Vision 2030, Saudi Arabia has embarked on the Saudi Green Initiative, with clear targets to increase the share of renewable energy, reduce carbon emissions, and enhance land and sea protection. This vision resonates with us well, and we stand ready to contribute," Mr. Chan said.

With Hong Kong's unique advantage of "one country, two systems", Mr. Chan said the city enjoys convenient, and at times privileged, access to the Mainland market while retaining its distinctive features, including a common law system, a judiciary that exercises powers independently, free flow of capital, goods, information, and talent, a low and simple tax regime, and a currency pegged to the US dollar.

He also identified three key areas where Hong Kong has become the premier international financial centre connecting the Middle East with the Chinese market: as a deep and broad fund-raising market, asset and wealth management, and green and sustainable finance. These areas, Mr Chan said, provide diverse investment offerings for investors and enterprises in the Middle East, and providing financial support to regional economic development and green transformation.

"Clearly, Hong Kong is an ideal platform for Saudi and Middle Eastern green and sustainable projects looking to access funds in our part of the world," Mr Chan said.

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