SFC and Saudi Capital Market Authority extend dialogue on regulatory cooperation beyond landmark ETF listing

The Securities and Futures Commission’s (SFC) Chief Executive Officer (CEO) Ms Julia Leung met today with Board Commissioner Mr Abdulaziz Bin Hassan of the Capital Market Authority (CMA) of Saudi Arabia in Hong Kong. Both sides agreed to enhance regulatory collaboration and continue to work towards a Memorandum of Understanding to facilitate cross-border investment initiatives between Hong Kong and Saudi Arabia.

They were also joined by the SFC’s Chairman Dr Kelvin Wong, Executive Director of Investment Products Ms Christina Choi as well as the CMA’s senior executives to witness the landmark listing of the first Sukuk (ie, Islamic bond) exchange-traded fund (ETF) in Hong Kong today. Tracking the performance of the underlying Sukuk index, the SFC-authorised ETF is Asia’s first investment grade Sukuk ETF. A milestone in itself, its listing also underscored Hong Kong’s commitment to deepening regional market ties as well as diversifying product offerings.

“Strengthening collaboration with the Middle East is pivotal to Hong Kong’s efforts to expand its worldwide network of trusted partners amidst new global challenges,” said Ms Leung. “This enhanced linkage not only allows investors in both Hong Kong and Saudi Arabian markets to access each other’s assets, but also gives fresh impetus to the city’s role as a super-connector on the China-Middle East Corridor.” 

Earlier today, Ms Leung spoke as a panellist at the Capital Markets Forum Hong Kong, highlighting the importance of building on recent progress in facilitating two-way capital flows between Hong Kong and Saudi Arabia (Note 1). She elaborated on the opportunities offered by the city’s listing and asset management markets to foreign companies and investors, citing as examples the growth of the Hong Kong ETFs cross-listed on the Saudi market, and that of the Hong Kong-listed Saudi Arabia ETF along with its Mainland-listed feeder ETFs (Note 2). 

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Notes:

1. Co-organised by the Saudi Tadawul Group and Hong Kong Exchanges and Clearing Limited, the forum brought together policymakers, regulators and business leaders across Asia, the Middle East and the world.

2. From their respective listing dates to end-April 2025: (a) the aggregate size of the two Saudi-listed feeder ETFs investing in Hong Kong stocks has risen 8%; and (b) the size of the Hong Kong-listed Saudi Arabia ETF and the aggregate size of its two Mainland-listed feeder ETFs have risen 26% and 22% respectively.