Albilad CSOP MSCI Hong Kong China Equity ETF (Albilad ETF), the first index fund tracking Hong Kong stocks in Saudi Arabia, made a winning debut in a milestone listing that opens the door for Middle Eastern investors to trade Hong Kong stocks.
The ETF rose 0.002 per cent to 10.02 Saudi riyals per unit in early trading on the Saudi Stock Exchange (Tadawul).
Trading under the stock code 9410, the fund raised more than US$1.2 billion, according to Hong Kong-based CSOP Asset Management, which has partnered with Albilad Capital. It is the largest ETF to list in the Middle East, according to Bloomberg data.
Saudi traders can invest as little as 10 riyals (US$2.66) to buy an ETF unit, which tracks the 30 largest companies in Hong Kong that are compliant with sharia requirements.
Unlike the Hong Kong stock exchange’s practice of striking a ceremonial gong to mark a new listing, Tadawul eschews the fanfare, with company executives pressing a button to mark the occasion.
Hong Kong’s Financial Secretary Paul Chan Mo-po and a large delegation from the city were present at the listing ceremony. He is in Riyadh to attend the FII summit that ends on Thursday.