Hong Kong Exchanges and Clearing’s (HKEX) new office in Saudi Arabia, which opens this year, reflects its determination to expand in the Gulf and will act as a bridge between financial markets in mainland China and the Middle East, the bourse operator’s managing director has said.
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Johnson Chui’s comments came amid reports that Dubai-based diaper maker Softcare had begun assessing investor interest in its Hong Kong initial public offering (IPO) after passing its listing hearing.
Chui, HKEX’s managing director and head of global issuer services, said the office in the Saudi capital Riyadh was essential because the bourse needed staff based in the kingdom to cultivate ties with local firms.
“It is an important strategic decision for us to enter this market, showing our determination in developing [business in] the area,” Chui told the Post in an interview on Wednesday.
Chui, who was part of the delegation led by Financial Secretary Paul Chan Mo-po at this year’s Future Investment Initiative (FII) forum in Riyadh, said the office would provide information and assistance to interested companies while exploring opportunities for dual listings in Hong Kong and the Middle East.
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Following the launch earlier this year of Asia’s first exchange-traded fund (ETF) tracking Saudi Arabia’s Islamic government bonds – the Premia BOCHK Saudi Arabia Government Sukuk ETF – expectations have been running high for the first Middle East firm to list in the city.