Investors will have the option to trade constituent stocks of the Saudi stock market directly on the Hong Kong Stock Exchange through exchange-traded funds in either Hong Kong dollars or Chinese renminbi.

This announcement comes as Asia’s first Saudi ETFs are set to be listed on the HKEX on Nov. 29, according to a top official.

An ETF is an investment system that functions like a combination of mutual funds and stocks, enabling individual investors to conveniently invest in markets.

In his blog post, Paul Chan, the financial secretary of the Hong Kong Government, stated: “The asset size of this ETF is the largest of its kind in the world, and it can be said to be a practical example of the financial connectivity of the Belt and Road Initiative.”

Source: Arab News