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In a bid to counter a slump in average trading volume, Hong Kong recently announced measures to boost investor activity. The Hang Seng Index is currently on course for a fourth consecutive year of losses after experiencing a 14 per cent slide. The situation stands in contrast to the rise in shares traded in Riyadh, with its main equities gauge showing a 6 per cent gain, outperforming emerging market peers.

According to Rebecca Sin, an analyst at Bloomberg Intelligence in Hong Kong, there is growing interest in the Saudi market, which is expected to more than double by 2030. In addition to boasting oil giant Saudi Aramco as its second-biggest holding, the fund is a heavy favorite among Hong Kong investors, especially with its strong financial focus.

CSOP is also in the process of working on a cross-listing for the fund in mainland China. The company’s Chief Executive Officer, Ding Chen, revealed in an interview with Bloomberg Television that the Public Investment Fund is a top investor in the ETF, although the exact amount was not disclosed. The listed fund currently tracks the FTSE Saudi Arabia Index.

The CEO of Hong Kong Exchanges & Clearing, Nicolas Aguzin, emphasized the potential for increased cooperation between the Middle East and Hong Kong. During a visit to Saudi Arabia, he highlighted the possibility of cross-listings between the two regions and an expansion in capital flows. This aligns with a cooperation agreement signed between the Shanghai and Saudi Arabia stock exchanges in September, focusing on areas such as cross-listings, financial technology, ESG, and data exchange.

Even as Hong Kong’s leader, John Lee, visited Saudi Arabia in February to push for Saudi Aramco’s listing in the Asian hub, there is no concrete indication of a dual listing being put into motion. Despite facing competition from rivals like New York and London, it remains to be seen whether Saudi Aramco will list in Hong Kong.