Middle Eastern companies, particularly those linked to Saudi Arabia’s Public Investment Fund, are showing interest in listing on the Hong Kong Stock Exchange. HKEX Chairman Carlson Tong Ka-shing noted that such listings would facilitate economic diversification for Saudi Arabia while providing Hong Kong investors access to the Gulf economy. This aligns with Saudi Vision 2030’s diversification goals and has been fostered through extensive talks between HKEX and Saudi officials.
Middle Eastern corporations are expressing a significant interest in pursuing stock listings in Hong Kong, as announced by Carlson Tong Ka-shing, the chairman of the Hong Kong Exchanges and Clearing Limited (HKEX). Mr. Tong highlighted a budding connection between Saudi Arabia and Hong Kong, facilitated by mutual trust and a growing friendship. He mentioned that entities with backing from the Kingdom’s Public Investment Fund (PIF) and those already listed on the Saudi Stock Exchange (Tadawul) are particularly well-positioned to consider Hong Kong listings. During a recent diplomatic visit to Riyadh, senior representatives from Tadawul and the PIF indicated enthusiasm about the prospect of Saudi firms entering the Hong Kong market. Mr. Tong remarked, “It is a win-win situation for Saudi companies to list in Hong Kong as they can raise funds to diversify their economy, while Hong Kong and international investors can also access the Gulf economy.” This initiative aligns with Saudi Arabia’s Vision 2030, which emphasizes economic modernization and diversification beyond oil dependency, triggering a wave of infrastructure developments throughout the Kingdom. The groundwork for this collaboration has been laid through extensive discussions between HKEX and Saudi officials over the past two years. Mr. Tong underscored the establishment of a cooperative environment, stating that both parties have worked towards fostering a relationship characterized by mutual confidence and respect. The possibility of cross-listing exchange-traded funds (ETFs) between the two markets further underscores the fruitful dialogue that has occurred.
The interest of Middle Eastern companies in listing on the Hong Kong Stock Exchange emerges amid Saudi Arabia’s ongoing efforts to diversify its economy as part of its Vision 2030 initiative. This plan aims to reduce the Kingdom’s reliance on oil revenues by broadening its economic base and encouraging investments in various industries. Hong Kong, recognized as a premier international financial hub, presents an attractive venue for firms seeking global visibility and access to capital markets, making it a strategic choice for Saudi corporations considering listing options.
The discussions between Middle Eastern firms and HKEX representatives indicate a growing inclination towards Hong Kong listings, driven by mutual benefits for both Saudi companies and international investors. This development reflects Saudi Vision 2030’s objectives to modernize the economy while simultaneously reinforcing Hong Kong’s position as a central player in global finance. The enhanced collaboration between the two regions is poised to lead to fruitful investment opportunities.
Original Source: www.scmp.com
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