The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, played a critical role as a major anchor investor in this pioneering initiative. This launch marks a key milestone for CSOP Asset Management, a subsidiary of China Southern Fund Management, reflecting the growing interest in strengthening economic relationships between regions.
Hong Kong’s Chief Executive John Lee has been actively pursuing closer ties with Middle Eastern countries, particularly Saudi Arabia, to spur economic growth. The Securities and Futures Commission’s Christina Choi emphasized the importance of regulatory collaboration to introduce more Hong Kong funds into the Saudi market. Meanwhile, Tony Wong from CSOP Asset Management noted the balanced origins of investment in the new ETF and anticipated an uptick in market liquidity.
In a related development, discussions are underway between the Shenzhen Stock Exchange and Saudi Tadawul Group to create an ETF Connect scheme. This scheme would facilitate cross-listing opportunities for ETFs on Chinese and Hong Kong exchanges, further integrating the financial markets of both regions.
The concerted efforts by various stakeholders underscore a strategic push to enhance financial cooperation and market access across continents. The introduction of the CSOP Saudi Arabia ETF is expected to open new avenues for investors and contribute to the dynamic landscape of international finance.
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Source: Cryptocurrency - investing.com
