Saudi Arabia and Hong Kong intensified efforts to enhance trading activity

Saudi Arabia and Hong Kong intensifies efforts to enhance trading activity, at a time when financial flows are declining to indicators traded in the two markets, coinciding with the failure to carry out new mutual inclusion operations.

The CEO of Tadawul, Hong Kong, Mohamed Al -Rumaih and Bony Chan, are scheduled to deliver a speech at the Hong Kong Capital Markets Forum today, Thursday, and the city’s finance minister in Paul Chan, and the head of the Securities and Futures Authority Julia Lyong.

Riyadh and Hong Kong have witnessed a consolidation of relations in recent years, as the Asian city seeks to attract Gulf families and diversify the investor base. On the other hand, Saudi Arabia has attracted Chinese investors and increased the ownership of foreigners and liquidity in the traded stocks, within the framework of Vision 2030.

A Saudi Bond Fund begins trading in Hong Kong

The trading of an indicators fund that tracks the bonds issued by the Saudi government in Hong Kong will begin today, Thursday. This is the latest addition to a series of indicators that follow the Saudi and Chinese stocks, which have been included in Hong Kong, Shenzhen, Shanghai and Riyadh since 2023, although trading and flow volumes are still minimal.

The analyst at Bloomberg Intelligence, Rebecca Sen, saw that “there is a limited natural demand for these products, despite its strong performance, as it seems that most of the desired assets came initially from founding investors such as the Saudi Public Investment Fund and the Hong Kong Cash Authority.”

In October, the Hong Kong Exchange announced its intention to open an office in the Saudi capital in 2025, as part of its endeavors to enhance the “largest interdependence between China and the Gulf,” according to an official statement. In the same month, “Cathy Pacific”, the National Airlines Company of Hong Kong, began to conduct 3 weekly and forth weekly flights between it and Riyadh.

The stock market in Hong Kong has recovered greatly since the CEO of the city, John Lee, visited the Gulf in early 2023, while Beijing seeks to strengthen the city’s position as a financing center for its companies, and the main new stock sales returned to its stock exchange this year after a stoppage period, often driven by inductions of major Chinese companies, originally listed on the mainland.

Earlier this month, the company “Catal”, the giant of electric car batteries, raised $ 5.3 billion in Hong Kong, after the largest insertion in the world for 2025.

Hong Kong index excel globally

The Hang Seng’s standard index in Hong Kong 16% increased this year, to be among the best in the world, compared to a decline in 8% in the Saudi market index “Tassi”, and a memorandum of understanding was signed between the two exchanges in 2023 to explore mutual listing opportunities, but no actual listing has been implemented yet.

Although more indicators can be included across the two regions this year with the support of government policies, “more resources and awareness will be necessary to motivate investors to demand these products,” according to Rebecca Sen of “Bloomberg Intelligence”.