Asia’s first exchange traded fund investing solely in Saudi Arabia’s equities market has listed on the Hong Kong exchange attracting $1bn in initial investment, marking one of the territory’s largest ever debuts.
The CSOP Saudi Arabia ETF was launched on the back of strong government support, after more than a year of high-level efforts by senior Hong Kong officials attempting to woo investment from the Middle East.
The ETF invests in a portfolio correlated to the FTSE Saudi Arabia Index, which has a market capitalisation of more than $270bn and aims to align with the Saudi Vision 2030 project, Crown Prince Mohammed bin Salman’s road map for economic diversification and global engagement.
Its top holdings include Saudi Aramco, the state-owned petroleum and natural gas company, and Al Rajhi Banking & Investment, the country’s largest bank.
The Public Investment Fund, Saudi Arabia’s $700bn sovereign wealth fund, has been named as an anchor investor in the fund. CSOP Asset Management, which manages the ETF, declined to say how much of the $1bn initial fundraising came from PIF but called the wealth fund “the most important cornerstone investor” for the product.
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