Hong Kong investors to gain access to Aramco and other Saudi mega cap stocks via soon-to-be launched ETF
- The fund will track Saudi Arabia’s 50 most valuable companies operating in sectors including financials, energy and materials, sources said
- The ETF will be managed by CSOP Asset Management, a Hong Kong venture owned by China Southern Asset Management, they said
Hong Kong investors will get a chance to tap into Saudi Arabia’s economy through a newly launched exchange-traded fund (ETF) which could buy shares in corporations like Aramco, the world’s third-most valuable company, and other giants listed on the world’s seventh-largest stock market in Riyadh.
An ETF is an investment vehicle that works like a combination of mutual funds and stocks, allows individual investors to invest in markets in an easy and convenient way. Individual investors can buy and sell listed ETFs on stock markets and are similar to mutual funds as they track entire indices.
The ETF, to be managed by CSOP Asset Management, a Hong Kong venture owned by China Southern Asset Management, is being launched at a time when the Middle East nation is looking to finance diversification of its oil-dependant economy.
The fund will track the 50 most valuable companies in Saudi Arabia’s stock exchange operating in sectors ranging from financials to energy and raw materials and will start trading on Hong Kong’s bourse soon, sources familiar with the situation said.
Financial Secretary Paul Chan Mo-po and his team have worked hard to the launch the ETF, according to sources familiar with the situation.
The sale was confirmed by a CSOP official who spoke on condition of anonymity, because the ETF launch was yet to be made public.