HONG KONG--(BUSINESS WIRE)--CSOP Asset Management Limited ("CSOP") is thrilled to be part of the introduction of the Albilad CSOP MSCI Hong Kong China Equity ETF (symbol :9410) on the Saudi Stock Exchange ("Tadawul") on October 30, 2024. 9410 will invest at least 95% of its assets to the CSOP MSCI HK China Connect Select ETF (ticker: 3432.HK) listed on the Hong Kong Stock Exchange ("HKEX"). This marks a milestone as the first ETF in Saudi Arabia to track the Hong Kong equity market. The Albilad CSOP MSCI Hong Kong China Equity ETF is set to be the largest ETF in the Middle East, making its debut with an initial size exceeding USD 1.2 billion1. As the investment manager of 3432.HK, CSOP is excited to join forces with Albilad Capital to offer this captivating investment opportunity, allowing investors in Saudi Arabia to tap into the dynamic and diverse Chinese economy.
9410 is a Sharia-compliant ETF that employs a passive investment strategy, replicating the performance of the MSCI Hong Kong China Connect Select Index ("the Index") via investing in 3432.HK. This Index provides exposure to the top 30 securities by full market capitalization in the MSCI China and the MSCI Hong Kong indexes that are listed on the HKEX and comply with Sharia standards. For the first time, this ETF grants investors in Saudi Arabia direct access to the growth potential of China's diverse economy, across sectors such as consumption, healthcare, and technology, among others.
Albilad Capital serves as the investment manager for 9410. Established in 2008, Albilad Capital is the leading ETF issuer in Saudi Arabia in terms of assets under management, accounting for 70% of all ETFs in the Saudi market. Furthermore, its unit holders represent 60% of the market share in the Saudi market2.
On November 29, 2023, CSOP introduced the CSOP Saudi Arabia ETF (ticker: 2830.HK) in Hong Kong, which is currently the largest of its kind globally that focuses on Saudi Arabia, with assets under management amounting to approximately HKD 10 billion3. On July 16, 2024, CSOP cross-listed 2830.HK back to Mainland China4.
The launch of the Albilad CSOP MSCI Hong Kong China Equity ETF marks another significant milestone for CSOP in its proactive engagement in the financial bilateral collaborations between China and Saudi Arabia. This, in turn, bolsters the evolution of Hong Kong's capital market as a global financial hub.
Looking forward, CSOP will persist in collaborating with business partners to carry out investor education, present top-tier Hong Kong stocks to the investing public of Middle East, and introduce Middle Eastern investments to Hong Kong. This will cultivate a more profound mutual comprehension between China and the Middle East.
The Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan, stated: "Following the listing of the first ETF investing in the Saudi market in Asia last November in Hong Kong, we are pleased to welcome the listing of the first Saudi ETF investing in Hong Kong stocks launched by CSOP. It provides a convenient investment channel for investors from the Middle East to access the Hong Kong and Mainland Chinese markets, promoting the two-way flow of capital between us and Saudi Arabia, as well as strengthening the connections in our capital markets. As the largest ETF in the Middle East, it will also introduce more international investors and sources of capital to the Hong Kong market, while enriching the investment products available in the Saudi market and supporting the development of its ETF market, creating a win-win situation for both sides."
“Our congratulations to CSOP / Albilad Capital on the launch of Albilad CSOP MSCI Hong Kong China Equity ETF.” Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority said: “This launch is a continuation of the cross-border capital markets collaboration between Hong Kong and Saudi Arabia. As the de facto Central Bank of Hong Kong, Hong Kong Monetary Authority is very glad to play a role in supporting this monumental development and look forward to seeing investors in Saudi to explore our capital market through this fund."
Luanne Lim, Chief Executive Officer, Hong Kong, HSBC said: "Hong Kong has once again demonstrated its role as a leading international financial centre, with 95% of the assets from today's listing set to return to the ETF listed on the Hong Kong Stock Exchange. As the fund administrator of more than 50% of Hong Kong domiciled ETFs, HSBC is pleased to facilitate the movement of capital between Asia and the Middle East, and support CSOP as it expands its global ETF strategy. "
On his part, Mr. Zaid AlMufarih, CEO of Albilad Capital said: "Today, we're not just celebrating the launch of an ETF; we're marking a milestone in financial innovation and international collaboration. This ETF is a testament to our dedication at Albilad Capital to bridge markets, cultures, and economies. By partnering with CSOP, we're opening a new avenue for investors to engage with the dynamic growth of China through Hong Kong, all while adhering to Sharia principles. This initiative is more than an investment opportunity; it's a step towards a more interconnected global financial landscape."
Chen Ding, CEO of CSOP said: “We are delighted and honoured to witness the launch of the first ETF investing in Hong Kong listed China equities on Saudi Exchange, which is a great step forward in connecting China and Saudi capital markets. CSOP has always been committed to enriching the ETF ecosystem in Hong Kong, and now we will continue our efforts to bring products with China exposure to the investors in Middle East area. I would like to express my sincere gratitude to Albilad Capital for its dedicated efforts in bringing the opportunity to invest in China to Saudi Arabia. I would also like to thank SFC and HKMA, as well as our long-time partner HSBC, for their continued support and commitment to the growth of Hong Kong’s ETF industry.”
About CSOP
As a leading ETF manager in Asia, CSOP is committed to facilitating cross-border investment through the provision of efficient and transparent ETF products. CSOP has been a trailblazer in Hong Kong's ETF market, managing 46 ETFs, with 5 consistently ranking among the top 10 most traded ETFs throughout the year*.
CSOP's dedication to cross-border initiatives and partnerships remains steadfast. We are the sole issuer involved in all ETF connectivity programs between Mainland China and Hong Kong SAR. CSOP ETFs represent 75% of the total holdings of southbound investors among eligible Hong Kong-listed ETFs in the ETF Connect**, and over 98% market share in ETF Cross-listing schemes***. We were also the first issuer to participate in the China – Singapore ETF link scheme.
In November 2023, CSOP successfully launched the first Saudi Arabia ETF in Hong Kong, which was warmly welcomed by a diverse group of investors. In July 2024, CSOP cross-listed 2830.HK back to Mainland China, providing mainland investors with the opportunity to invest in high-quality Saudi assets through ETF for the first time.
* Source: Bloomberg, 1/1/2024 - 31/7/2024.
**Source: CCASS, Bloomberg, CSOP. As of 31/8/2024, the asset under management holding of 3033.HK and 3037.HK accounted for 75% of the total southbound investors’ holdings of the total 16 eligible HK-listed ETFs.
*** Source: Bloomberg, 31/7/2024.
Disclaimer: This document is for general information only and do not constitute any kind of advice. Investment involves risks. Investors should refer to the offering document for further details including the risk factors. This document is not applicable in jurisdictions where the distribution of this document is restricted. This document (and information in this document) should not be copied, reproduced, or distributed to any parties without the written consent of CSOP. For the index provider disclaimer, please refer to the product’s offering document. This document is prepared and issued by CSOP and has not been reviewed by the Securities and Futures Commission in Hong Kong.
1 Source: Albilad Capital，29/10/2024.
2 Source: Albilad Capital, 18/9/2024.
3 Source: CSOP, 31/8/2024.
4 Source: CSOP, 16/7/2024.
