The view of Hong Kong Photo: VCG
The Hong Kong Special Administrative Region (HKSAR)’s Financial Secretary Paul Chan will lead a delegation from the financial, innovation and technology sectors to Saudi Arabia on Monday, a move that analysts said is set to deepen cooperation between the HKSAR and the Middle East on multiple fronts and help further consolidate Hong Kong’s status as a global financial and commercial hub.
The delegation comprises more than 110 members, including heads or representatives from the Belt and Road Office, the Hong Kong Monetary Authority, the Securities and Futures Commission, Hong Kong Exchanges and Clearing Ltd, and the Hong Kong Science and Technology Parks Corp, among others, according to a press release on the HKSAR government’s website.
“The visit not only represents closer connection between the HKSAR and Saudi Arabia, but also marks a new milestone of deeper, more diverse collaboration between Hong Kong and the Middle East region,” Chan said on his blog on Sunday.
The delegation will attend the listing ceremonies of the first two exchange-traded funds (ETFs) tracking Hong Kong stock indices on the Saudi Exchange, which will debut in late October. Chan said that witnessing the launch is one of the key activities of the visit, which signals that local investors will “be able to invest in the Hong Kong stock market easily by trading locally listed ETFs within a familiar trading and regulatory environment.”
The debut comes after Asia’s first and the world’s largest Saudi Arabia-focused ETF went public on the Hong Kong stock exchange in November 2023.
Observers said they expect more two-way financial products will be launched, fostering capital flows, bringing more capital from the Middle East to the Hong Kong market. They will also enrich the connotation of financial connectivity under the Belt and Road Initiative (BRI).
Liang Haiming, chairman of Hong Kong-based China Silk Road iValley Research Institute, told the Global Times on Sunday that there is great room for cooperation on a wide range of financial sectors, such as digital payments and blockchain technology, as well as jointly launching green fintech products.
According to Chan, another focus of the visit is to accelerate and deepen cooperation in innovation and technology. Hong Kong Science and Technology Parks Corp will bring more than 20 tech start-ups to conduct roadshows in Saudi Arabia during the visit.
As Saudi Arabia has set a goal to diversify its economy in its Vision 2030, it is believed that Hong Kong enterprises, given their advantage in sci-tech know-how, will find new investment opportunities and explore new markets in the Middle East, Liang said. He added that the visit is also conducive for the HKSAR to enhance its international influence and consolidate its position as a global financial and trading center.
The HKSAR delegation will also attend the 8th edition of the Future Investment Initiative in Riyadh, during which Chan and members of the delegation will expound the HKSAR’s unique role and functions as a “super connector” and “super value-adder.” They will also share how Hong Kong can support the development of the Middle East and the Global South, and actively contribute to the development of the BRI.