HKEX to Open Riyadh Office in 2025, Strengthening Ties Between China and the Middle East

Introduction

Hong Kong Exchanges and Clearing Limited (HKEX) is expanding its global footprint by establishing an office in Riyadh, Saudi Arabia, set to open in 2025. This new office marks a pivotal step in HKEX's strategy to build deeper connections with the Middle East and enhance capital market access between China and the Gulf region. By fostering closer ties between Asia and the Middle East, HKEX aims to create new opportunities for investors, issuers, and businesses worldwide.

Expanding HKEXs Presence in the Middle East

HKEXs Riyadh office will be the latest addition to its network, joining offices in key financial centers, including Beijing, London, New York, Shanghai, and Singapore. This expansion underscores HKEX's commitment to positioning Hong Kong as a major gateway for capital flows between China and the Middle East, providing Middle Eastern clients with seamless access to Asia's liquid and diverse markets.

Bonnie Y Chan, Chief Executive Officer of HKEX, highlighted the strategic significance of the new office, stating, “We are delighted to be opening a Middle East office in Riyadh, marking the first step in elevating our presence across this vibrant and fast-growing region.” She added, “As investment ties between the Middle East and Asia grow stronger, Hong Kong and HKEXs roles in connecting capital and opportunities between these regions have become more important than ever.”

Strengthening Middle East-Asia Investment Ties

HKEX's increased focus on the Middle East aligns with the growing investment relationship between China and the Gulf countries. As both regions pursue economic diversification and development goals, the demand for cross-border capital flows and collaborative market infrastructure has surged. The new Riyadh office will serve as a strategic base, enabling HKEX to meet the needs of investors and issuers across the Middle East, further strengthening this vital connection.

With its new presence in Riyadh, HKEX aims to bring the benefits of Hong Kong's international capital markets to Middle Eastern investors and businesses, providing access to a wide range of financial products, including stocks, bonds, and Exchange-Traded Funds (ETFs). This initiative reflects HKEX's goal of becoming a more inclusive and globally integrated financial hub.

Building on Existing Collaborations and Partnerships

HKEX has already made substantial progress in fostering relationships in the Middle East. Some key collaborations include:

1. Memorandum of Understanding with Saudi Tadawul Group: This partnership reflects a mutual interest in enhancing capital market connectivity, offering investors from both regions more accessible and diversified opportunities.
2. Introduction of Saudi-Focused ETFs: HKEX welcomed Asia's first and the worlds largest Saudi-focused ETF, allowing investors from Asia to tap into Saudi Arabia's market.
3. Recognition of Middle Eastern Exchanges: HKEX added the Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market to its list of Recognized Stock Exchanges, enhancing trading access and transparency for investors from both regions.

These partnerships highlight HKEX's commitment to facilitating cross-border investments and supporting the ambitions of Middle Eastern and Asian investors alike.

Milestones in Capital Market Connectivity

This week, two ETFs tracking Hong Kong-listed equities were listed on the Saudi Exchange, marking a significant achievement in capital market connectivity between Hong Kong and Saudi Arabia. This milestone builds on the successful listing of the first Saudi-focused ETF in Hong Kong last November, demonstrating the mutual interest in accessible and diversified investment options between the two regions. These ETFs offer Middle Eastern investors exposure to Hong Kong's thriving market, while Asian investors can access opportunities in the Saudi economy, fostering a dual exchange of financial flows and interests.

Conclusion

HKEX's decision to open an office in Riyadh represents a landmark move in its mission to connect global markets and bolster investment ties between China and the Middle East. As HKEX continues to build strategic relationships and expand its reach, its presence in Riyadh will play a vital role in facilitating access to Asia's capital markets, enhancing opportunities for investors and issuers worldwide. This expansion not only strengthens Hong Kongs position as a financial gateway but also signals a growing era of collaboration between the Middle East and Asia in the global financial landscape.

As both regions look toward the future, HKEXs new office in Riyadh stands as a testament to the potential for mutual growth, connectivity, and opportunity between China and the Middle East.