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the first batch of saudi exchange traded funds
(etfs) debuted domestically on july 16, further promoting a high-level of
openness in the chinese etf market.
the first batch of saudi etfs has two funds, with one listed on the shanghai stock exchange and the other on the shenzhen stock exchange. the products adopt a mutual access model between chinese mainland's and hong kong's etf, connecting capital market resources from the chinese mainland, hong kong special administrative region and saudi arabia.
it took about a month for the saudi etfs to complete the process from approval to official listing. over 1.2 billion yuan ($165.15 million) were raised. this marks another significant step in the opening up of china's capital markets to the world.
in recent years, china's capital markets have established etfs with multiple countries and regions. recently, the chinext 50 etf was simultaneously listed in five european countries including ireland, the uk and switzerland. so far, a total of 12 overseas fund products tracking shenzhen market indices have been listed, actively promoting cross-border two-way investments and global resource allocation.
according to tian lihui, dean of the institute of financial and development at nankai university, the saudi etf has opened up diversified cross-border investment channels for domestic investors, promoted capital flows and integration between different markets, and advanced financial innovation and internationalization processes in the capital markets of both countries. in recent years, china has continuously aligned with international capital markets in terms of products, mechanisms, and resources, continuously optimized cross-border product systems, and expanded cross-border investment and financing channels, which helps promote a high-level institutional opening of the capital markets.
