Asia’s first ETF tracking Saudi equities debuts in Hong Kong

Asia’s first ETF tracking Saudi equities debuts in Hong Kong

HONG KONG: A new exchange-traded fund (ETF) tracking Saudi equities made its trading debut in Hong Kong on Wednesday, becoming the first product of its kind in Asia amid warming bilateral relations between China and Saudi Arabia.

The ETF, called CSOP Saudi Arabia ETF, is managed by Hong Kong-based CSOP Asset Management. It counts Saudi sovereign wealth fund, Public Investment Fund (PIF), as an anchor investor, CSOP said in a press release.

The index was up about 0.9% in opening trade.

"Today is a milestone in our financial cooperation with Saudi Arabia," said Hong Kong Financial Secretary Paul Chan at a launch event.

"It makes it possible for mass investors in our part of the world to invest and participate in the development of the Saudi Arabia's economy," he said. "We can expect to see more products to be made available in both the Hong Kong and the Saudi markets for our respective investor bases."

The fund tracks the performance of the FTSE Saudi Arabia Index, whose 56 constituents' total market value reached $276.8 billion at the end of October, an index document showed.

Through the ETF, investors in Hong Kong will be able to trade Saudi stocks including the