Middle Eastern companies express interest in Hong Kong listings, HKEX chairman says

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Carlson Tong Ka-shing says Saudi Arabia and Hong Kong have established ‘trust and friendship’

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Carlson Tong Ka-shing, chairman of Hong Kong Exchanges and Clearing. Photo: Edmond So

Enoch Yiu

Published: 8:30am, 18 Nov 2024Updated: 8:42am, 18 Nov 2024

Senior officials in Saudi Arabia have indicated that companies in the Middle East are interested in listing in Hong Kong to raise funds for infrastructure projects as the kingdom has established “trust and friendship” with the city, according to the chairman of Hong Kong Exchanges and Clearing (HKEX).

Carlson Tong Ka-shing said some projects and companies with investments from the kingdom’s sovereign wealth fund – the Public Investment Fund (PIF) – and firms listed on the Saudi Stock Exchange, also known as Tadawul, could easily seek Hong Kong listings.

Senior officials from Tadawul and PIF showed interest in the suggestion that Saudi companies should list in Hong Kong when they met a delegation from the city in Riyadh last month, Tong said.

“It is a win-win situation for Saudi companies to list in Hong Kong as they can raise funds to diversify their economy, while Hong Kong and international investors can also access the Gulf economy,” he said.

Under its Saudi Vision 2030 plan, Saudi Arabia is modernising and diversifying its economy to reduce its reliance on oil, which has led to the launching of many infrastructure projects in the kingdom.

After many meetings with HKEX and Hong Kong government officials over the past two years, in addition to the cross-listing of exchange-traded funds (ETFs) in both markets, Tong said the two sides have established “trust and friendship”.