HSBC Supports Launch Of Asia’s First ETF Tracking Saudi Arabian Equities

HSBC announced that it had been appointed as the ETF partner of Asia’s first ETF tracking the performance of Saudi Arabian equities as the underlying. Issued and managed by CSOP Asset Management, the “CSOP Saudi Arabia ETF” launched on the Stock Exchange of Hong Kong (HKEX) on 29, November 2023.

The “CSOP Saudi Arabia ETF” has Assets Under Management (AUM) expected to surpass USD1 billion and 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. It will offer investors a choice of trading and settling in the Hong Kong dollar or in the Renminbi.

HSBC is proud to support CSOP Asset Management, among Asia’s leading asset management firms, as well as its investors, by acting as the Trustee, Fund Custodian, Fund Administrator, Participant Dealer, FX provider and Execution Broker in the listing of the fund.

Faris Al-Ghannam, CEO of HSBC Bank Saudi Arabia, expressed, “Our extensive network and strong relationships, combined with the increasing opportunities along the Middle East-Asia trade corridor, have played a pivotal role in accomplishing this historic milestone. It serves as another crucial link connecting these two dynamic regions.”

Raouf Fahim, Head of Equities, MENAT, remarked, “The Kingdom of Saudi Arabia is undergoing a compelling growth narrative, driven by its ambitious initiatives outlined in Vision 2030 across various key business sectors. This growth story is poised to capture the attention of investors, particularly in Hong Kong and throughout the broader Asian region in the forthcoming years.”

In September 2023, the HKEX also added Tadawul as a recognised Stock Exchange in further signs of closer cooperation between the corridor’s capital markets.