The Hong Kong Securities and Futures Commission (SFC) announced that its Chief Executive Officer, Julia Leung, met with Saudi Arabia’s Capital Market Authority (CMA) Board Commissioner Abdulaziz Bin Hassan in Hong Kong, with both regulators agreeing to enhance collaboration and continue work towards a memorandum of understanding to facilitate cross-border investment initiatives between the two markets. Senior executives from the SFC and CMA also witnessed the listing of the first Sukuk (Islamic bond) exchange-traded fund (ETF) in Hong Kong, an SFC-authorised product that tracks an underlying Sukuk index and is described as Asia’s first investment grade Sukuk ETF. At the Capital Markets Forum Hong Kong, Leung highlighted efforts to facilitate two-way capital flows, citing growth in linked ETF products: from their listing dates to end-April 2025, the aggregate size of two Saudi-listed feeder ETFs investing in Hong Kong stocks rose 8%, while the size of the Hong Kong-listed Saudi Arabia ETF and the aggregate size of its two Mainland-listed feeder ETFs rose 26% and 22% respectively. The two regulators plan to continue dialogue with the stated objective of finalising an MoU to support further cross-border investment initiatives.
Hong Kong Securities & Futures Commission 2025-05-29
Hong Kong Securities and Futures Commission and Saudi Arabia Capital Market Authority step up regulatory cooperation and work toward a memorandum of understanding
The Hong Kong Securities and Futures Commission (SFC) and Saudi Arabia’s Capital Market Authority (CMA) agreed to enhance collaboration and work towards a memorandum of understanding for cross-border investment initiatives. Senior executives witnessed the listing of Asia’s first investment grade Sukuk exchange-traded fund (ETF) in Hong Kong. The SFC highlighted growth in linked ETF products, with significant increases in the size of Saudi and Hong Kong-listed ETFs.