Hong Kong Securities and Futures Commission Executives Visited the Middle East

On June 2nd, the Chief Executive Officer of the Hong Kong Securities and Futures Commission, Leung Fung Yee, and the Executive Director of the Investment Products Division, Choi Fung Yee, met in Riyadh with senior officials from the Saudi Capital Market Authority and the Saudi Stock Exchange Group. The meeting focused on exploring opportunities to further enhance financial services cooperation between Hong Kong and Saudi Arabia, discussing the potential for signing a regulatory memorandum of understanding, and addressing the facilitation of cross-listing funds on stock exchanges in both regions to deepen cooperation. Additionally, a roundtable discussion was held in Riyadh with representatives from Saudi Arabia's major asset management companies and financial institutions to discuss Hong Kong's regulatory framework and market conditions. Topics included the current state and future opportunities in asset and wealth management, further enhancing mutual understanding and prospects for cooperation between the two markets.

Since early last year, there has been significant progress in deepening the interconnectivity of the capital markets between Hong Kong and Saudi Arabia. By the end of 2023, the Hong Kong Stock Exchange had introduced the first Asia-Pacific region exchange-traded fund (ETF) tracking Saudi Arabian stocks and formally recognized the Saudi Exchange as one of its approved stock exchanges through a memorandum of understanding. On May 9, the Hong Kong Stock Exchange and the Saudi Stock Exchange Group co-hosted the first International Capital Market Forum in Hong Kong. During the forum, both sides deepened their understanding of each other's markets and discussed measures to further facilitate capital flows and market development. Hong Kong and Saudi Arabia also discussed establishing more direct market access mechanisms and mutual listing of funds, which would provide investors in both regions with more investment options and convenience, while enhancing the effective allocation and liquidity of capital.

This meeting marks the end of the first formal visit by senior officials of the Hong Kong Securities and Futures Commission to the Middle East, focusing on deepening the interconnectivity between Hong Kong and Middle Eastern financial markets and advancing cooperation in financial services. Through these high-level exchanges, Hong Kong and Saudi Arabia have not only established a closer cooperation in the financial services sector but also promoted dialogue and understanding at the regulatory level, laying a solid foundation for deeper capital market cooperation in the future.