DUBAI: Carlson Tong Ka-shing, Chairman of Hong Kong Exchanges and Clearing (HKEX), said that there is a possibility of potential listings of Saudi companies on the Hong Kong Stock Exchange.
With the backing of the Public Investment Fund (PIF) and the presence of numerous Saudi companies on the Saudi Exchange (Tadawul), the initiative could foster economic diversification and enhance cross-border investment.
As articulated by Ka-shing, the prospect of Saudi companies listing in Hong Kong presents a mutually beneficial scenario.
“Saudi firms, the move would facilitate access to capital markets beyond their borders, enabling them to raise funds essential for diversifying the Saudi economy away from its traditional reliance on oil revenues. This diversification is particularly pertinent in the context of Saudi Arabia’s Vision 2030, which aims to transform the kingdom’s economic landscape.”
Financial interconnectivity
Conversely, Hong Kong stands to gain from this collaboration by providing its investors with unprecedented access to the Gulf economy.
The integration of Saudi companies into the Hong Kong market would not only enhance the investment landscape for international investors but also strengthen Hong Kong’s position as a global financial hub.
The recent listing of two exchange-traded funds on Tadawul, which allows Middle Eastern investors to trade Hong Kong stocks, underscores the growing financial interconnectivity between the two regions.
The dialogue initiated at the 8th Future Investment Initiative (FII) summit in Riyadh, led by a high-profile delegation from Hong Kong, signifies a commitment to exploring these opportunities further.
