Tadawul Group, 2 Chinese stock exchanges in talks for ETF cross-listings

Logo of Tadawul Group

The Saudi Tadawul Group Holding Co. (Tadawul Group) and two Chinese stock exchanges are in talks to allow the cross-listing of their exchange-traded funds (ETFs), Reuters reported, citing sources familiar with the matter.

The talks are in the early stages, said the sources, noting that this could be a major first step by China and Saudi Arabia towards broadening cooperation beyond energy, security, and sensitive technology sectors.

The Shenzhen Stock Exchange, one of the two major markets in the Chinese mainland, is in negotiating with Tadawul Group over ETF Connect, as the program is called, the sources.

Some of China's biggest ETF operators have been notified over the past months about the possibility of a cross-listing agreement with Saudi Arabia and some are studying the option, the sources said.