RIYADH: In a significant step forward for East Asian and Middle Eastern financial cooperation, Hong Kong has introduced Asia’s first exchange-traded fund that tracks Saudi sovereign sukuk. The Hong Kong Stock Exchange lists the Premia BOCHK Saudi Arabia Government Sukuk ETF, which tracks the iBoxx Tadawul Government & Agencies Sukuk Index. It comprises sukuk issued by the Saudi government and associated organisations in both riyal and US dollar denominations.
Stock codes 3478 for the Hong Kong dollar counter and 9478 for the US dollar counter are used to trade the ETF. The Securities and Futures Commission of Hong Kong has given its approval. With costs set at 0.35 per cent and an anticipated yearly tracking difference of about -2 per cent, it provides quarterly US dollar dividends.
The Capital Markets Forum, a two-day event organised by Hong Kong Exchanges and Clearing Ltd. and Saudi Tadawul Group to promote cross-border investment, opened concurrently with the launch.
The forum’s theme for this year is “Powering Connections,” and it centres on enhancing capital market and economic links between East Asia and the Middle East.BOCHK Asset Management Ltd. acts as the investment adviser for the ETF, which Premia Partners manages.
Also Read:
Israel’s Abhorrent” Assaults on Civilian Installations in Gaza are Denounced by the EU Head
British Far-Right Leader Tommy Robinson Was Freed From Jail
