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Treasury & Capital Markets
Hong Kong lists Asia's first ETF tracking Saudi equities
CSOP names HSBC as trustee, custodian and administrator of the fund
The Asset 29 Nov 2023

CSOP Asset Management on Wednesday (November 29) launched Asia-Pacific’s first exchange-traded fund tracking the performance of Saudi Arabian equities on the Hong Kong stock exchange.

It has appointed HSBC as the trustee, fund custodian, fund administrator, participant dealer, FX provider and execution broker in the listing of the fund.

The CSOP Saudi Arabia ETF (HKD counter: 2830, RMB counter: 82830) will enable investors in Hong Kong-traded products to access growth from a broad basket of Saudi Arabian equities listed on the Saudi Exchange (Tadawul), as the Gulf nation diversifies its global investor base. The ETF tracks shares from 56 Saudi companies.

Investors are given a choice of trading and settling in Hong Kong dollar or renminbi.

The Hong Kong Exchanges and Clearing (HKEX) says the new ETF complements a huge array of thematic and country-specific ETFs listed in Hong Kong and will be the world's biggest Saudi-focused ETF.

Welcoming the listing, Wilfred Yiu, HKEX co-operating officer and head of equities, says: "This reflects HKEX's ongoing commitment to connecting capital with opportunities, and to diversifying its range of products and investment opportunities on its markets. As the leading ETF marketplace in Asia, HKEX is committed to further driving the attractiveness of the market, and looks forward to welcoming further new products in the future, strengthening Hong Kong's ETF ecosystem, and reinforcing the city's role as a vital [international financial centre]."

In September 2023, the HKEX added the Tadawul as a recognized stock exchange, signalling closer cooperation between the two capital markets

Hong Kong's exchange-traded products (ETPs), including ETFs and leveraged and inverse (L&I) products, represent one of the fast-growing segments in HKEX's markets, having grown 20% in the year to October 2023, totalling HK$355.43 billion (US$45.58 billion).

The inclusion of ETFs in Stock Connect and the first listings of crypto asset ETFs in Hong Kong have further boosted the strong growth momentum and product diversity of Hong Kong's ETP market since their introduction in 2022, the bourse operator says. The average daily turnover of ETPs for the first ten months of 2023 jumped over 20% year-on-year, reaching HK$14 billion. As at October 31, 175 ETPs have been listed on HKEX, with a third of the ETP issuers having introduced new products in the Hong Kong market during the year.

Commenting on the CSOP Saudi Arabia ETF listing, Monish Tahilramani, HSBC's head of markets and securities services, Asia-Pacific, says: “HSBC’s focus on international connectivity, as well as deep expertise and knowledge of Asia and Middle East markets, is reflected in the launch of this exciting ETF which will enable both retail and institutional investors in Hong Kong to access Saudi Arabia’s exciting growth story.” 

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