Latest news with #CapitalMarketsForum
Leaders
5 days ago
- Business
- Leaders
Saudi Arabia, Hong Kong Boost Cross-Border Financial Ties
Saudi Arabia and Hong Kong may soon approve additional cross-border financial products. On Thursday, an exchange-traded fund tracking Saudi government bonds began trading in Hong Kong. This marks the first fixed-income fund in the territory to provide such exposure. Authorities from both regions announced plans to deepen financial ties amid growing trade uncertainties. The newly launched exchange-traded fund represents a significant milestone in Hong Kong's financial market. Julia Leung, CEO of Hong Kong's Securities and Futures Commission, highlighted more products in development. These include a sharia-compliant Sukuk bond and a real estate investment trust. Leung expressed confidence in the cross-listing of various financial products during the Capital Markets Forum. Hong Kong introduced Asia's first ETF tracking Saudi equities in November 2024. This initiative aims to boost capital flows as diplomatic relations between Beijing and Riyadh strengthen. Over recent years, Hong Kong has actively pursued a listing for Saudi Aramco. Such a listing would provide investors in the Asian financial hub with easier access to the Saudi state oil giant. Broadening Financial Ties Amid Global Trade Tensions Hong Kong's Financial Secretary Paul Chan emphasized opportunities beyond stocks at the forum. He noted potential for bonds, derivatives, and other financial products between Hong Kong and the Middle East. This expansion of cross-border products comes amid rising trade tensions. In April, U.S. President Donald Trump imposed sweeping tariff measures, disrupting global markets. A U.S. trade court recently blocked these tariffs from taking effect. The court ruled that the president overstepped his authority by imposing broad duties on imports. When asked about navigating trade deal uncertainties, Chan remarked that the court's move would 'at least bring President Trump to reason.' Strengthening Economic Partnerships The collaboration between Hong Kong and Saudi Arabia signifies a strategic effort to enhance financial integration. By introducing innovative financial products, both markets aim to attract diverse investment opportunities. This partnership not only strengthens bilateral economic ties but also positions both regions as key players in the global financial arena. As global trade dynamics continue to evolve, the proactive measures taken by Hong Kong and Saudi Arabia set a precedent. These initiatives demonstrate a commitment to fostering economic resilience and growth. Investors and market participants can look forward to a broader range of financial instruments. These developments will undoubtedly contribute to the overall stability and prosperity of the global financial landscape. Short link : Post Views: 16
The Star
5 days ago
- Business
- The Star
Hong Kong, Saudi Arabia may approve more cross-border financial products
HONG KONG/SYDNEY: Hong Kong and Saudi Arabia are considering allowing more cross-border financial products, authorities said on Thursday, as the two markets seek to deepen financial ties amid rising trade uncertainties. An exchange-traded fund tracking bonds issued by the Saudi government started trading in Hong Kong on Thursday, the first fixed-income fund listed in the territory to offer such exposure. Apart from the fund, more products - such as a sharia-compliant Sukuk bond and a real estate investment trust - are "in the pipeline" for approval to trade between Hong Kong and Riyadh, said Julia Leung, CEO of Hong Kong's Securities and Futures Commission. "We're very comfortable in the cross listing of whatever products," Leung told those attending the Capital Markets Forum organised by Saudi exchange operator Tadawul Group. Hong Kong launched Asia's first ETF tracking Saudi equities in November 2024, as the two markets look to spur capital flows as diplomatic relations warm between Beijing and Riyadh. In the last few years, Hong Kong has been seen wooing Saudi Aramco to list in the city, a deal that would allow investors in the Asian financial hub easier access to the Saudi state oil giant. Apart from stocks, there are opportunities for bonds, derivatives and other financial products between Hong Kong and the Middle East, Hong Kong's Financial Secretary Paul Chan said at the forum, when asked about the progress of a potential listing of Saudi Aramco. The expansion of cross-border products coincides with rising trade tensions after U.S. President Donald Trump unleashed sweeping tariff measures in April roiling global markets. A U.S. trade court on Wednesday blocked the tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy. Asked how countries and companies should navigate the uncertainty of trade deals following the U.S. court block, Chan said the move would "at least bring President Trump to reason". - Reuters
CNBC
5 days ago
- Business
- CNBC
Hong Kong Financial Secretary says U.S. court order on Trump's 'reciprocal' tariffs will bring him 'to reason'
Hong Kong Financial Secretary Paul Chan said that a U.S. federal trade court decision to strike down President Donald Trump's worldwide reciprocal tariffs would "at least bring President Trump to reason." Chan also commented about de-dollarization trend and what it means for the Hong Kong dollar, in response to a question by CNBC's Emily Chan at the Capital Markets Forum fireside chat organized by Saudi exchange operator Tadawul Group.
RTHK
5 days ago
- Business
- RTHK
Chan hopes US ruling brings reason to tariff chaos
Chan hopes US ruling brings reason to tariff chaos Financial Secretary Paul Chan has expressed hope that a US federal court ruling against recent tariff measures would bring President Donald Trump back "to reason". Chan's comments came soon after a US trade court blocked Trump's "Liberation Day" tariffs on Wednesday, ruling that the American president exceeded his authority by imposing blanket duties on imports from countries that export more to the United States than they import. Speaking at a fireside chat during the Capital Markets Forum, Chan stressed the importance of countries maintaining an open mind in new trade negotiations. "We have our value to bring to the negotiation table," he said. "Say, for example, the mainland is the only country in the world that has the whole complete manufacturing chain. "Also, it is not just about low cost, no more, but it is about the quality of the products and the capacity to serve huge overseas markets and the responsiveness to the change in market taste and style. "So I think this is a core competitiveness of the mainland." Chan also noted that mainland companies are increasingly relocating parts of their supply chains to southeast Asia, a shift he said that could significantly alter the international trade landscape. He also said the SAR's IPO market is experiencing a resurgence, solidifying its position as a global leader in new listings. The city has raised around US$10 billion through initial public offerings so far this year, equivalent to approximately 90 percent of the total funds raised in all of 2024. Chan said more than 100 major companies are currently in the IPO pipeline. "We welcome both mainland and international companies," he said. "I think only we welcome them with open arms. "So there is also a process for people to do some pre-IPO consultation on a confidential basis with the stock exchange, and going back to the earlier point about the vibrancy of this market, truly the valuations have been quite reasonable. "So people are looking for bargains. "In my engagements with overseas fund managers, I think they have underweight their allocation to this part of the world. So they need to catch up. That gives this additional liquidity. "And also given the current geopolitics, Hong Kong is a safe haven for international capital. So all the more the reason to support the coming IPOs here." Chan further added that Hong Kong continues to attract both mainland and foreign companies, pointing to growing collaboration between the SAR and Middle East markets.
RTHK
5 days ago
- Business
- RTHK
Chan hopes US ruling brings reason to tariff chaos
Chan hopes US ruling brings reason to tariff chaos Paul Chan says the recent IPO market resurgence solidifies Hong Kong's position as a global leader in new listings. Photo: RTHK Financial Secretary Paul Chan has expressed hope that a US federal court ruling against recent tariff measures would bring President Donald Trump back "to reason". Chan's comments came soon after a US trade court blocked Trump's "Liberation Day" tariffs on Wednesday, ruling that the American president exceeded his authority by imposing blanket duties on imports from countries that export more to the United States than they import. Speaking at a fireside chat during the Capital Markets Forum, Chan stressed the importance of countries maintaining an open mind in new trade negotiations. "We have our value to bring to the negotiation table," he said. "Say, for example, the mainland is the only country in the world that has the whole complete manufacturing chain. "Also, it is not just about low cost, no more, but it is about the quality of the products and the capacity to serve huge overseas markets and the responsiveness to the change in market taste and style. "So I think this is a core competitiveness of the mainland." Chan also noted that mainland companies are increasingly relocating parts of their supply chains to southeast Asia, a shift he said that could significantly alter the international trade landscape. He also said the SAR's IPO market is experiencing a resurgence, solidifying its position as a global leader in new listings. The city has raised around US$10 billion through initial public offerings so far this year, equivalent to approximately 90 percent of the total funds raised in all of 2024. Chan said more than 100 major companies are currently in the IPO pipeline. "We welcome both mainland and international companies," he said. "I think only we welcome them with open arms. "So there is also a process for people to do some pre-IPO consultation on a confidential basis with the stock exchange, and going back to the earlier point about the vibrancy of this market, truly the valuations have been quite reasonable. "So people are looking for bargains. "In my engagements with overseas fund managers, I think they have underweight their allocation to this part of the world. So they need to catch up. That gives this additional liquidity. "And also given the current geopolitics, Hong Kong is a safe haven for international capital. So all the more the reason to support the coming IPOs here." Chan further added that Hong Kong continues to attract both mainland and foreign companies, pointing to growing collaboration between the SAR and Middle East markets.
