HSBC Supports Launch Of Asia’s First ETF Tracking Saudi Arabian Equities

HSBC announced that it has been appointed as the ETF partner of Asia’s first ETF tracking the performance of Saudi Arabian equities as the underlying. Issued and managed by CSOP Asset Management, the “CSOP Saudi Arabia ETF” (HKD counter: 2830, RMB counter: 82830) will launch on the HKEX today.

The “CSOP Saudi Arabia ETF” has Assets Under Management (AUM) expected to surpass USD1 billion and will enable investors in Hong Kong traded products to access growth from a broad basket of Saudi Arabian equities listed on the Saudi Exchange (Tadawul), as the Gulf nation diversifies its global investor base. It will offer investors a choice of trading and settling in Hong Kong dollar or in Renminbi.

HSBC is proud to support CSOP Asset Management, among Asia’s leading asset management firms, as well as its investors, by acting as the Trustee, Fund Custodian, Fund Administrator, Participant Dealer, FX provider and Execution Broker in the listing of the fund.

Luanne Lim, Chief Executive of HSBC Hong Kong, said: “It is our honour to play a part in bringing CSOP Asset Management and their investors together. With HSBC’s extensive global network and industry expertise, we are in a unique position to connect clients and capital, supporting their growth agendas and driving product innovation in today’s ever-changing investment.”

In September 2023, the HKEX also added the Tadawul as a recognised Stock Exchange in further signs of closer cooperations between the corridor’s capital markets.

Monish Tahilramani, Head of Markets & Securities Services, Asia Pacific at HSBC, said: “HSBC’s focus on international connectivity as well as deep expertise and knowledge of Asia and Middle East markets is reflected in the launch of this exciting ETF which will enable both retail and institutional investors in Hong Kong to access Saudi Arabia’s exciting growth story.”

Through its long-standing relationship with CSOP Asset Management, HSBC has supported the firm to achieve a number of milestones in recent years including providing our trustee services to launch Asia’s first virtual asset futures ETFs listed on HKEX in December 2022, as well as providing custody and administration for the first ETF to list under the Variable Capital Company (VCC) scheme in Singapore in 2020, among other notable achievements.

HSBC continues to be the go-to-bank for ETF issuers in Asia, providing fund administration services to more than 50 per cent of ETFs in Hong Kong.