Middle East Accelerates Purchases of Chinese Assets

　　On October 30, Saudi Arabias first ETF that invests in the Hong Kong stock market, the Albilad CSOP MSCI Hong Kong China Stock ETF, was officially listed on the Saudi Exchange. In just half an hour after its listing, its trading volume reached RMB 1.5836 million, and its activity was ahead of other ETFs on the Saudi Arabian exchange market.

　　At the China (Shenzhen)-UAE Industrial and Investment Cooperation Seminar, 19 representatives of listed companies from advanced manufacturing, digital economy, energy and chemicals, biomedicine, and other industries conducted “one-on-one” roadshow exchanges with 7 UAE institutions to discuss Opportunities for collaboration. As financial cooperation continues to deepen, Middle Eastern funds are accelerating their purchases of Chinese assets.

　　Image source: Picture Elf

The largest ETF in the Middle East

　　On October 30, Albilad CSOP MSCI Hong Kong China Equity ETF was officially launched on the Saudi Arabian Exchange. More than 95% of its assets will be invested in CSOP MSCI Hong Kong Stock Connect Select ETF. Its initial scale exceeded US$1.2 billion (equivalent to approximately RMB 8.5 billion). ), indicating that Middle Eastern funds are flowing into the Chinese market through ETFs.

　　Public information shows that CSOP MSCI Hong Kong Stock Connect Select ETF closely tracks the MSCI Hong Kong Stock Connect Select Index. The stocks selected by this index have been listed on the Hong Kong Stock Exchange and cover industries such as consumption, healthcare, and technology. Its constituent stocks include Meituan, Xiaomi Group, Anta Sports, etc.

　　Zaid AlMufarih, CEO of Albilad Capital, and Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region, believe that the listing of Saudi Arabias first Hong Kong stock ETF not only provides a new investment tool for the Saudi Arabian market but also helps promote the two-way flow of funds in the two markets.

Middle Eastern funds accelerate their purchases of Chinese assets

　　The reporter found that Middle Eastern funds such as Saudi Arabia, the United Arab Emirates, and Kuwait are accelerating their purchases of Chinese assets.

　　Data provided by CSOP shows that as of August 31 this year, the asset management scale of CSOP Saudi Arabia ETF was approximately HK$10 billion. This Asia-Pacific's first Saudi ETF has become the largest Saudi ETF in the world.

　　On September 30, the Abu Dhabi Investment Authority and the Kuwait Government Investment Authority held 31 A-share listed companies, covering Internet finance, machinery, building materials, consumption, cycles, and other fields, with a market value of 10.87 billion.

　　In addition to some individual stocks, Abu Dhabi Investment Authority newly purchased Tonghuashun, China Software, Shunxin Agriculture, Zhongju High-tech, Tiandi Technology, and Shaanxi Natural Gas in the third quarter. In addition to some individual stocks, Abu Dhabi Investment Authority newly purchased Tonghuashun, China Software, Shunxin Agriculture, Zhongju High-tech, Tiandi Technology, and Shaanxi Natural Gas in the third quarter. The number of shares held reached 43.1295 million shares. The market value of the holdings at the end of the quarter was respectively 1.53 billion.

　　The Kuwait Government Investment Authority newly purchased Shanjin International and Sinoma International in the third quarter, with the number of shares held reaching 36.1015 million shares, and the market value of the shares at the end of the quarter reached 563.6852 million yuan.

　　Cooperation between China and Saudi Arabia is also becoming increasingly close. Industry insiders believe that Middle Eastern funds investing in Chinese assets will help their asset diversification and risk management, indicating that the Middle East is optimistic about the long-term development of the Chinese market.