The SFC and the Saudi Capital Market Authority ("CMA") agreed to enhance regulatory cooperation and explore a Memorandum of Understanding ("MoU"). They witnessed the landmark listing of Asia's first investment grade Sukuk ETF in Hong Kong, highlighting Hong Kong's commitment to deepening regional market ties.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 29, 2025, the Securities and Futures Commission’s ("SFC") Chief Executive Officer ("CEO") Ms. Julia Leung met with Board Commissioner Mr. Abdulaziz Bin Hassan of the Capital Market Authority ("CMA") of Saudi Arabia in Hong Kong. Both parties agreed to enhance regulatory collaboration and continue to work towards a Memorandum of Understanding ("MoU") to facilitate cross-border investment initiatives between Hong Kong and Saudi Arabia.
Joined by the SFC’s Chairman Dr. Kelvin Wong, Executive Director of Investment Products Ms. Christina Choi, and senior executives from the CMA, Ms. Leung and Mr. Bin Hassan witnessed the landmark listing of the first Sukuk (Islamic bond) exchange-traded fund ("ETF") in Hong Kong. This ETF, tracking the performance of the underlying Sukuk index, is Asia’s first investment-grade Sukuk ETF, signifying a significant milestone for Hong Kong’s commitment to deepening regional market ties and diversifying its product offerings.
Ms. Leung emphasized the importance of strengthening collaboration with the Middle East as a key strategy for Hong Kong’s global network of trusted partners. This initiative is aimed at boosting Hong Kong’s role as a super-connector on the China-Middle East Corridor.
Prior to the meeting, Ms. Leung delivered a keynote address at the Capital Markets Forum Hong Kong, highlighting the opportunities presented by Hong Kong's listing and asset management markets. She emphasized the growth of Hong Kong ETFs cross-listed on the Saudi market and the Hong Kong-listed Saudi Arabia ETF along with its Mainland-listed feeder ETFs. The forum, co-organized by the Saudi Tadawul Group and Hong Kong Exchanges and Clearing Limited, brought together policymakers, regulators, and business leaders from across Asia, the Middle East, and the world.
From their respective listing dates to end-April 2025, the aggregate size of the two Saudi-listed feeder ETFs investing in Hong Kong stocks rose by 8%, while the size of the Hong Kong-listed Saudi Arabia ETF and the aggregate size of its two Mainland-listed feeder ETFs increased by 26% and 22% respectively.
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