HKEX CEO: Riyadh office ‘strategic step’ to continue dialogue with regional markets

Bonnie Chan, CEO of Hong Kong Exchanges and Clearing (HKEX)

Bonnie Chan, CEO of Hong Kong Exchanges and Clearing Limited (HKEX), confirmed that opening an office in Riyadh is a significant strategic step driven by increased demand to strengthen cooperation and continue dialogues between Hong Kong and the Middle East markets.

In an interview with Argaam during the Future Investment Initiative (FII) conference, Chan explained that this move will help build deeper and more sustainable relationships with companies and financial institutions in Saudi Arabia, where more than 50 financial institutions are already working with HKEX.

The Kingdom, with its ambitious projects and development initiatives, offers substantial investment opportunities that could attract foreign capital, with the market value of new investment opportunities in Saudi Arabia exceeding SAR 5 trillion.

Chan highlighted HKEX’s international expansion strategy in connecting capital with global investment opportunities, particularly to foster collaboration between HKEX and financial markets in the Middle East, especially in Saudi Arabia, which is pursuing an ambitious path to diversify its economy beyond oil under Vision 2030.

She added that the relationship with Saudi Arabia is evolving into tangible partnerships with real potential. The goal of establishing a team in Riyadh is to support Saudi companies, enabling them to access global capital markets more effectively and seamlessly.

Chan explained that Exchange-Traded Funds (ETFs) are key to enhancing investment exchange between the Kingdom and Hong Kong. She pointed to the first Saudi fund listed in Hong Kong, which comprises over 50 Saudi companies, making it the largest of its kind in Asia, with a value of $2 billion.

Additionally, two Hong Kong-related ETFs were recently listed on the Saudi financial market, reflecting the success of cooperation between Hong Kong and Saudi markets and highlighting the great potential of these financial tools.

Chan mentioned the "Stock Connect" program, which allows investors from all over the world to trade the companies listed on the A-share market more conveniently through Hong Kong. This is particularly attractive to Saudi and other Middle Eastern investors who are looking for a window tapping into China’s rapidly growing economy, valued at around US$17 trillion.

HKEX is celebrating the 10th anniversary of Stock Connect, which facilitates international investor access to the Chinese local market, with an annual trading volume of around US$3.5 trillion.

She affirmed that the expansion in the Kingdom will not be limited to ETFs or trading of stocks, as she also saw potentials in other investment fields such as commodities, in line with the growing demand for essential metals used in green technologies in the region.

Chan highlighted that demand for metals has significantly increased due to the shift toward sustainable development initiatives, with the HKEX’s subsidiary, the London Metal Exchange (LME), boosting revenues by 27% last year to meet investor needs.

She also reported that HKEX achieved strong financial results in the third quarter, with net profits reaching nearly HKD3.1 billion, a 15% increase compared to the previous year. Chan added that the group is continuously striving to enhance its international presence and expand the scope of its services and products to meet the needs of diverse markets.