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Asia’s first Saudi Arabia ETF makes winning debut in Hong Kong in milestone event for stronger China-Middle East market, financial links

  • The CSOP Saudi ETF offers investors a passive tracking of Saudi Arabia’s US$1 trillion economy and the world’s biggest oil company Aramco
  • Investors can trade the Saudi ETF locally in Hong Kong dollar or in Chinese yuan, based on its reference net asset value of about HK$76.92 or 70.64 yuan

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(From left) Nicolas Aguzin, CEO of HKEX; Abdulmajeed Alhagbani, head of securities investments at PIF; Yazeed Al-Humied, the deputy governor of PIF; Financial Secretary Paul Chan; SFC chairman Lui Tim Leung and CSOP CEO Ding Chen attend the listing ceremony of the CSOP Saudi Arabia ETF on Wednesday. Photo: Edmond So
Enoch Yiu
CSOP Saudi Arabia ETF, the first exchange-traded fund in Asia that tracks the Middle East’s biggest companies including Saudi Aramco, made a winning debut in Hong Kong in a milestone listing underpinning stronger ties between Hong Kong and Middle East financial markets.
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The Saudi ETF, managed by CSOP Asset Management, rose by 0.8 per cent to HK$77.56 per board lot of 10 units in Hong Kong on Wednesday, and by 0.3 per cent to 70.88 yuan. They trade under the 2830 and 82830 stock codes, respectively. In comparison, the Hang Seng Index fell 2 per cent on Wednesday.
The fund, which tracks the FTSE Saudi Arabia Index accessible to foreign investors, is based in Saudi’s riyals. Its net asset value was indicated at about HK$76.92 or 70.64 yuan on November 28, according to an exchange filing. HSBC Institutional Trust Services is the trustee for the fund.

“The listing shows the formation of a partnership between the Middle East and Hong Kong and mainland China as well,” said Rajeev Mittal, managing director for Asia-Pacific ex-Japan at Fidelity International. “There is a strong commonality of interest in the two regions.”

Saudi Aramco is the second largest constituent in the FTSE Saudi Arabia Index, and has a 9.88 per cent weightage. Photo: Reuters
Saudi Aramco is the second largest constituent in the FTSE Saudi Arabia Index, and has a 9.88 per cent weightage. Photo: Reuters

Wednesday’s trading was marked by the traditional striking of a ceremonial gong at the Connect Hall in Central. Financial Secretary Paul Chan Mo-po, Public Investment Fund (PIF)’s deputy governor Yazeed Al-Humied, HKEX CEO Nicolas Aguzin, Securities and Futures Commission chairman Tim Lui and CSOP CEO Ding Chen and HSBC Hong Kong CEO Luanne Lim attended the ceremony.

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