Saudi Arabia and China’s financial markets are connecting through new exchange-traded funds (ETFs) on Chinese bourses, says PIF Governor Yasir Al-Rumayyan. These ETFs offer Asian investors access to Saudi equities, driven by strategic economic transformation.
Two ETFs debuted in Shanghai and Shenzhen on July 16, hitting the 10% daily limit on launch day. The CSOP Saudi Arabia ETF QDII, managed by China Southern Asset Management, raised 634 million yuan ($87 million). The Huatai-PineBridge managed ETF raised 590 million yuan.
PIF aims to attract foreign investors and boost capital inflows into Saudi Arabia. The success of the CSOP Saudi Arabia ETF in Hong Kong, launched with over $1 billion in November 2023, including a $500 million PIF contribution, highlights this strategy.
These ETFs provide Chinese investors new opportunities in the Middle East’s largest market, benefiting individual investors in Saudi Arabia over time.