Work on an exchange-traded fund tracking Hong Kong stock indices is underway with Saudi Arabia.
Hong Kong is working on an exchange-traded fund (ETF) with Saudi Arabia tracking the former’s local stock indices, according to a statement. During the inaugural «Capital Markets Forum» in Hong Kong, Deputy Financial Secretary Michael Wong unveiled that the city was working with several financial institutions to develop the ETF to further two-way capital flows.
This move follows Hong Kong’s recent launch of an ETF in November 2023 that tracks the performance of the FTSE Saudi Arabia Index.
«Friendship and Partnership»
According to Wong, Hong Kong is reaffirming its commitment to Saudi Arabia with a series of initiatives aimed at strengthening ties. He noted that Cathay Pacific Airways is expected to relaunch direct passenger flights from Hong Kong to Riyadh in the fourth quarter of this year, with flight time to be cut to six hours. Hong Kong is also considering the establishment of an economic and trade office in Riyadh.
«The friendship and partnership between Hong Kong and Saudi Arabia will go very far and will endure the test of time,» Wong said.
Middle East Ties
Hong Kong continues to make efforts to create financial linkages with the Middle East. In January, the Hong Kong Monetary Authority signed a memorandum of understanding (MOU) with Saudi Arabia's Financial Sector Development Program to enhance connectivity between markets.
Outside of Saudi Arabia, Hong Kong also recently signed an MOU with Qatar for collaborative efforts in their respective financial sectors.
