The stock exchanges of Hong Kong and Saudi Arabia have established agreements to explore cooperation in various areas, including cross-listings.
The HKEX has signed a memorandum of understanding (MOU) with the Saudi Tadawul Group – the stock exchange operator of Saudia Arabia – to explore opportunities in multiple areas, according to a statement.
This will include fintech, ESG, cross-listings and other areas of interest to both exchanges.
Chief Executive Visit
The announcement was made amid Hong Kong chief executive John Lee’s ongoing one-week trip in the Middle East.
Lee has confirmed that part of the trip's goals in Riyadh includes negotiations for an investment promotion and protection agreement as well as encouragement of oil giant Armco and its subsidiaries to list in Hong Kong.
Saudi Exchange
On the other hand, Saudi Arabia also seeks to benefit from greater market connectivity with Hong Kong.
«As we seek to position the Saudi capital market as an investment hub between East and West, we are seeing increased interest from issuers and investors in Asia,» said Saudi Tadawul CEO Khalid Al Hussan.
«This MOU brings us one step closer towards enabling cross-listings and other areas of collaboration between Saudi Arabia and Hong Kong.»
