October 31, 2024

Two ETFs Tracking Hong Kong, China Shares Debut in Saudi Arabia

view original post

(Bloomberg) — Two exchange-traded funds tracking shares in Hong Kong and China debuted in Saudi Arabia this week, as investments and financial links between the Asian city and the oil-rich kingdom grow.

The Albilad CSOP MSCI Hong Kong China Equity ETF, which raised HK$10 billion ($1.3 billion), dropped for a second consecutive session to 9.82 riyals as of 11:42 a.m. in Riyadh on Thursday. The fund listed at 10 riyals on Wednesday after raising more proceeds than any other ETF on the Saudi exchange. The SAB Invest Hang Seng Hong Kong ETF, which began trading on Thursday, fell to 9.88 riyals.

The debuts happened as the kingdom hosts the eighth edition of its Future Investment Initiative, a Davos-style confab that lured top executives from Wall Street and Silicon Valley to the kingdom. The head of Hong Kong Exchanges and Clearing Ltd., Bonnie Chan, and the city’s financial secretary Paul Chan are among guests to the event as the Gulf has become a key region for investments over recent years.

The ETFs in Riyadh will provide easier access in local currency to investors seeking exposure to Chinese stocks. About one year ago, a $1 billion ETF tracking Saudi shares listed in Hong Kong, the largest of its type to trade in the city.

“Saudi and Hong Kong ETFs are doing a $1 billion asset swap in each other’s funds in an effort to stimulate their home markets and make the ETFs more attractive to outside investors,” Bloomberg Intelligence analysts Eric Balchunas and Rebecca Sin wrote in a report. “One of the big motivations to do this swap is that both markets are looking to increase their flows and liquidity.”

The Albilad CSOP ETF will invest in Chinese equities through the Hong Kong-domiciled CSOP MSCI HK China Connect Select ETF, which counts e-commerce firm Meituan and sportswear maker Anta Sports Products Ltd. among its biggest holdings.

The listing of Hong Kong exchange-traded funds on the Saudi exchange was a “reciprocation” to the two Saudi ETFs listed in Hong Kong earlier after building awareness of both markets, HKEX’s Chan said in an interview to Bloomberg TV on Wednesday. The bourse also said on Wednesday it plans to open an office in Riyadh next year.

–With assistance from Jack Wang and Kiuyan Wong.

(Updates prices in second paragraph.)

©2024 Bloomberg L.P.

thebullishtraders.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thebullishtraders.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thebullishtraders.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thebullishtraders.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.