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HONG KONG – In a major move to strengthen financial ties between Asia and the Middle East, CSOP Asset Management has launched the first CSOP Saudi Arabia ETF on the Hong Kong exchange. The fund, launched with an impressive initial capital of $1 billion, is part of a broader effort to leverage global investment commitments in line with the Vision’s economic diversification goals Saudi 2030.
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, plays a key role as an anchor investor in this pioneering initiative. The launch marks a major milestone for CSOP Asset Management, a subsidiary of China Southern Fund Management, reflecting growing interest in strengthening economic ties between regions.
Hong Kong Chief Executive John Lee has actively pursued closer ties with Middle Eastern countries, especially Saudi Arabia, to promote economic growth. Christina Choi of the Securities and Futures Commission emphasized the importance of regulatory cooperation to introduce more Hong Kong funds into the Saudi Arabian market. Meanwhile, Tony Wong from CSOP Asset Management notes the balanced origins of investing in the new ETF and predicts an increase in market liquidity.
In a related development, discussions are underway between the Shenzhen Stock Exchange and Saudi Tadawul Group to create an ETF Connect plan. The plan will facilitate cross-listing opportunities for ETFs on China and Hong Kong exchanges, further integrating the financial markets of both regions.
The coordinated efforts of various stakeholders underscore a strategic push to enhance financial cooperation and market access across continents. The launch 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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