What’s new: A U.S.-backed fund manager is seeking regulatory approval for what may become the first mutual fund available to Chinese mainland investors that tracks the Saudi Arabian stock market.
The China Securities Regulatory Commission on Wednesday received an application from Huatai-PineBridge Fund Management Co. Ltd. to register a mutual fund that would invest in the CSOP Saudi Arabia ETF, a Hong Kong-listed exchange-traded fund (ETF) that tracks the FTSE Saudi Arabia Index, according to the regulator’s website.
Huatai-PineBridge is owned by two Chinese companies and U.S. asset manager PineBridge.
The mutual fund would invest in the ETF through the Qualified Domestic Institutional Investor (QDII) program, which allows qualified mainland institutional investors to trade offshore securities.
Launched in November, the CSOP Saudi Arabia ETF is the Asia-Pacific’s first ETF to track the Middle Eastern country’s stock market, according to the Hong Kong Stock Exchange.
The background: Saudi Arabia has been pushing for partnerships with Asian economies as it seeks to extend its energy sources beyond oil and diversify its economy under “Vision 2030” — a plan announced in 2016 to promote private business, encourage foreign investment and drive social change.
In a summit in Hong Kong last week, Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), said that the sovereign wealth fund is considering setting up an office on the Chinese mainland.
The PIF, with total assets of more than $700 billion, opened an office in Hong Kong in 2022.
Related: First Asia ETF Tracking Saudi Arabian Stocks Debuts in Hong Kong
Han Wei contributed to this report.
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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