Hang Seng Investment, one of Hong Kong’s largest exchange-traded fund (ETF) managers, has launched the SAB Invest Hang Seng Hong Kong ETF through its partner, SAB Invest, a subsidiary of The Saudi Awwal Bank in Saudi Arabia.

This new feeder ETF, which fully invests in the Tracker Fund of Hong Kong, made its trading debut on the Saudi Exchange (Tadawul) on 31 October 2024.

Addressing attendees at the listing ceremony, Paul Chan Mo-Po, financial secretary of the Government of the Hong Kong Special Administrative Region (HKSAR) congratulated SAB Invest, Hang Seng Investment and the Saudi Exchange (Tadawul) for this successful listing. He said, “Today’s ETF invests into the Tracker Fund of Hong Kong, which tracks more than 80 of the largest, most liquid, stocks on the Hong Kong Stock Exchange. It creates another channel for Saudi investors to participate in Hong Kong’s equity market on a diversified basis covering such key sectors as finance, technology and property  in Hong Kong, and Mainland China.”

Rosita Lee, director and CEO of Hang Seng Investment, said: “As the manager of TraHK, Hang Seng Investment is delighted that TraHK has been selected as the underlying investment for the new feeder ETF outside of Hong Kong, highlighting its appeal to international markets. Our collaboration with SAB Invest demonstrates our shared vision of fostering greater diversity in the investment market in Saudi Arabia. It will play a pivotal role in strengthening capital flows between Hong Kong and the Middle East, particularly by leveraging Hong Kong’s position as a super-connector between mainland China and the rest of the world.”

Launched in 1999, TraHK is the largest ETF in Hong Kong in terms of assets under management (AUM) and turnover, with AUM of HKD 166 billion ($21.3 billion) as of the end of September 2024. The SAB Invest Hang Seng Hong Kong ETF offers Middle Eastern investors a new opportunity to access Hong Kong’s dynamic capital markets.

Re-disseminated by The Asian Banker