2 days ago
Hong Kong-listed Saudi ETF assets at $1.3B, GCC investors interest grows: HKEX official
Gregory Yuen, Head of Markets at Hong Kong Exchanges and Clearing (HKEX), said there is accelerating growth in cross-border investment flows between Hong Kong and the Gulf region, highlighting the 2023 listing of a Saudi ETF as a milestone. The fund surpassed $1.3 billion in assets under management within just 18 months.
Speaking to Argaam on the sidelines of the 2025 Financial Markets Forum in Hong Kong, Yuen added that HKEX also recently listed a new Saudi sukuk fund, reflecting increasing investor appetite in Hong Kong for Saudi financial instruments.
He noted that interest is not limited to Asian investors, but includes Saudi and Gulf investors actively engaging in Hong Kong-listed equities and financial products as part of a 'two-way flow.' He stressed that HKEX serves as a bridge between China and global markets—particularly the Gulf.
Yuen said the exchange has seen a rise in initial public offerings (IPOs) this year, with proceeds exceeding $10 billion, ranking HKEX second globally and first when excluding SPAC listings.
He explained that Gulf interest—especially from Saudi Arabia—extends to sectors such as technology and renewable energy, supported by regulatory reforms like Chapter 18C, which facilitates listings by innovative companies. This aligns closely with the objectives of Saudi Vision 2030.
Yuen also revealed that HKEX is in ongoing talks with several Saudi companies regarding potential listings or dual listings, amid growing interest from Gulf investment institutions—particularly in technology and financial services.
On foreign capital flows, Yuen said the exchange has recorded notable inflows from institutional investors outside Asia, especially from the Gulf region, into Chinese equities and ETFs. He emphasized that Middle Eastern investors played a foundational role in several recent IPOs.
